Before September 1, 2023, when you went back to work after retirement, it was good for you, but it did not increase your pension, even though you continued to pay your pension contributions. In short, you were making unreimbursed contributions while receiving no new benefits.
That's what changed on September 1 in France when the reform took effect. From now on, it will be possible to combine working with receiving a pension, which will eventually lead to an increase.
The increase is not actually calculated over time - that would be too complicated. On the day you stop working, you ask for your new basic and additional pension payments to be calculated. Only then will you be paid a second pension, calculated taking into account the periods you have worked after retirement.
You are only entitled to submit such an application once. Thus, if you return to work afterwards, you will not be able to use this opportunity a second time.
The amount of the second pension cannot exceed a certain amount (5% of the annual social security ceiling), which changes every year. This year it is 2199 euros gross, or a maximum of 183 euros per month to the basic pension. There is also a cap on the amount of the supplementary part.
There are certain conditions. In order to take advantage of this opportunity, you must draw your pension at the legal age and receive the full amount, i.e. all your quarters.
Positive consequences of the reform
The reform can reduce the burden on the state pension system. Pensioners who continue to work will make additional contributions to the pension fund, which can help increase its revenues and ensure the sustainability of the pension system in the future.
The skill level and productivity of retirees will increase. Working can help retirees stay fit and improve their skills and knowledge, which can make them more productive workers.
More job opportunities will be created for younger people. Retirees who continue to work may be able to fill some jobs that younger people cannot fill, such as jobs in the service, trade, or health care industries.
Pensioners who continue to work will receive a higher pension than those who do not work. This could lead to increased inequality between pensioners of different income levels.
There will be an additional burden on pensioners. Working can be challenging and stressful, especially for older people. Working can also lead to a decrease in the amount of time retirees can spend with family and friends.
Also, if you retired early, i.e. before the statutory retirement age, or if your working life did not work out, you can work again if certain conditions are met, but you will not be able to supplement your pension and enjoy this new entitlement.
Overall, the new French reform is a positive step that could benefit both pensioners and the state. However, it is important to consider its potential drawbacks to ensure its successful implementation and realization.