Is the supplementary pension taxable?

The retirement pension is not very well known to French women and men. It is clear that the latter know, in the end, very little about their rights. Some issues, however, matter more than others. That of the constitution of the remuneration once the cessation of activity has come is crucial: it is important to realize that any retirement is made up of at least two pensions. The pension from the general scheme… and that from the supplementary scheme. Both are subject to income tax, recalls the specialized site AG2R La Mondiale. The indemnity received on departure is not systematically received, however.

The tax rate that weighs on the retirement pension, continues the platform, is the same as for the income received by the assets. This therefore means that a retiree also benefits from the 10% allowance automatically applied by the Tax Administration, but the ceilings for claiming it and the minimum deduction amount are lower.

Moreover, it is also important to specify that basic retirement pensions – those from the general scheme, therefore – are exempt from social charges. This is not the case for complementary and supplementary pensions (paid by Agirc-Arrco, therefore), are subject to a 1% contribution. It is this which makes it possible, in particular, to finance health insurance.

Please note, however: retirement pensions of less than 289.90 euros per month are exempt from income tax. The same applies if the pensioner’s annual resources are less than 10,418.40 euros.