The minimum pension in France changes from year to year. Find out more about the French pension system in today’s article.
French pension system
After the reform of 2010, the French government decided to extend the retirement age from 60 to 62 (for both men and women).
With over 40 years of work experience, it is possible to apply for the highest retirement pension. Moreover, the period of insurance is taken into account. If the length of service is less than 40 years, the retirement benefits will be reduced accordingly.
In France, the pension can be distinguished:
- basic pension
- occupational pension
Anyone legally working in France can apply for the basic benefit. Additionally, citizens are enrolled in the occupational pension scheme. In this case, the employee gets additional points for seniority and position. For example, management staff will get more points from a regular employee.
Pension system: advantages and disadvantages
In France, there function more than 40 plans for various professional groups that determine the rules for paying your pension in their own way. Depending on your profession or company, you will receive a different number of points for your retirement.
There are also special programs for people who find themselves in an exceptional life situation (e.g. illness).
On the other hand, retirement benefits are paid on an ongoing basis from the contributions of those working at the moment. This is a considerable burden for the state budget.
The French government is preparing further reforms, which, among others are intended to standardize retirement benefits. So, regardless of the workplace or profession, a person will receive the same as others.
Minimum pension in France 2022
The points mentioned above affect the amount of your pension. It also takes into account the average wage over the last 25 years worked. This amount is multiplied by the retirement rate for this occupational group.
From January 2022, the amount of retirement benefits will increase by 1.1% – this also applies to the self-employed. This rate does not only apply to basic lawyers’ pensions, which will increase by 1%
In addition, elderly people of low-income are entitled to the Allocation de Solidarité aux Personnes Agées (ASPA) – an allowance for solidarity with the elderly. No matter how many years a person has worked before, he can count on the help of the following order:
- EUR 916.78 / month, i.e. EUR 11,001.44 / year (for a lonely person)
- EUR 1,423.31 / month, i.e. EUR 17,079.77 / year (for two people)
From 2022, the minimum pension for farmers with their own farm will be increased! It will be 85% of the minimum wage, i.e. approximately EUR 1,025 / month.
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Related entries:
Costs of living in France 2022
Earnings in France – Minimal and average wages
