You still have to be patient. The government undertook, before the legislative elections, to increase the amount of retirement pensions. It is a question, in fact, of protecting the French men and women who have liquidated their rights from the high inflation observed today on French soil. The country as a whole is facing major consumer price increases, which are eating away at everyone’s purchasing power about as much as they are eating into the savings of savers. Certain ministers, including Bruno Le Maire, did not hesitate to speak of “emergency measure”.
In theory, such a revaluation must concern all of the insured persons who have already opted for the cessation of activity and will be based solely on the amount of the general pension. “If we take into account inflation at 4%, for a pension of 1,200 euros, it is a gain of 45 euros per month”, declared Olivier Dussopt, the Minister of Labour. The stated objective of the executive is to improve the amount of retirement pensions from July, for entry into force during the month of August.
In fact, informs Capital, the increase in retirement pensions will not be enough to offset inflation. This should climb further and potentially reach 7�ns in the weeks or months to come. It has already exceeded 5.2% in the past.
“For some retirees, those who do not particularly show purchasing power problems, this increase could theoretically be used for comfort gains. For the others, who constitute an integral part of the population… The situation will be more complicated”, analyzes from the outset the sociologist Dominique Desjeux, specializing in issues related to consumption. In his view, the bonus provided by the State has a number of flaws. But will it be possible to make this money grow? To get our heads above water at the end of a price crisis that could be lasting?
“Let’s remember first that inflation weighs more heavily on French women and men belonging to the lower middle class. Their expenditure structure is such that most of their consumption items cannot already be reduced: we then speak of constrained expenditure”, explains Dominique Desjeux, who mentions in particular food or mobility. “These will not be able to do anything: the revaluation of their pension will be immediately absorbed by inflation”, underlines the expert again. “All the money that comes in goes into food. For such a boost to be really relevant, and fair, it would be necessary in this case to diversify state aid, but it is quite hard to do”, he continues.
Moreover, it is however possible to tighten the belt to keep a little of the budget thus gained, explains the sociologist again. It is even a phenomenon that we are already observing, he underlines. “Whenever there is a purchasing power constraint, and it is very strong today, French men and women shift their consumption. It’s mechanical,” explains the academic. And to clarify that it is generally leisure that falls by the wayside…
Therefore, retirees who manage to save the amount collected – around 45 euros per month, according to the Ministry of Labor – could theoretically earn a lot. Provided you can place it!
Investing 45 or 50 euros per month, on a regular basis, is never a bad idea. “It is always useful to free up precautionary savings, which can also join retirement savings. This is an opportunity to protect yourself against possible health, dependency, housing problems… or quite simply against the loss of income after the cessation of activity”, recently judged the economist Philippe Crevel, in our columns .
The latter was then considering several types of investment likely to support retirees who might be eligible. According to him, this is the case for LEP, but also for life insurance, for example, but also for the PEA.