Pension reform: the government’s plan for small pensions

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A helping hand for retirees most in difficulty. When liquidating their pension, some French people have a bad surprise when they discover the amount that will be paid to them each month for the next few years. Low salary, part-time work for many years… Some retirees who have worked all their lives find themselves with a pension that is barely higher than those benefiting from the 953 euros from Aspa (Solidarity allowance for the elderly) and who do not have sometimes never contributed.

The Public Service site recalls for its part that, if a full-rate basic pension is less than a minimum amount, then “it is increased up to this minimum contributory”. To qualify, three conditions must be met:

According to Ouest-France, 700,000 retirees receive assistance to supplement their pension. The French concerned are those receiving 900 euros per month for a single person and 1,350 euros per month for a couple. Faced with difficult month-ends, many retirees are looking for solutions and are forced to cut back on their shopping budget, on outings or on daily pleasure expenses.

An injustice that the government wants to remedy. The latter continues its consultations around the pension reform and if the retirement age is at the heart of the discussions, another point is important, that of small pensions. Emmanuel Macron had already mentioned the possibility of increasing small pensions, but what about now that the reform is in the pipeline? Here’s what we know.

During the campaign for the presidential election, Emmanuel Macron said he wanted to increase the minimum pension to set it at 1,100 euros, in the case of a full career. Problem, inflation is already undermining this minimum amount, which may not be enough if daily prices continue to rise as they have done in recent months.

Quoted by Le Figaro, the minister explained to the press that the government already intended to go beyond this amount of 1,100 euros and set it “around 85% of the net minimum wage”, which would represent around 1 130 euros per month. Who could benefit from this new minimum? All retirees or only those who will retire after the introduction of the reform?

The question has not yet been decided by the government. Quoted by Le Figaro, Olivier Dussopt explains: “Application to flow or stock, all of this is part of the reflection, knowing that there are major technical constraints”. He thinks in particular of pension applications made before 2009, in paper format and which have not been digitized: “To apply a corrective measure on pensions before 2009, it would be necessary to carry out an investigation and open the archives “.

Another question remains, that of the financing of this increase. Will it weigh on the still active French people or on the wealthiest retirees? This last option does not seem to be on the table, because the Minister of Labor explained to Les Echos: “It is a debate that we have not opened and that we do not wish to open”.