ADVERTISEMENT
More than 600,000 retirees in France currently combine a pension with employment. This arrangement is becoming increasingly popular. Some wish to remain active, while others seek supplemental income. For years, regulations have encouraged this practice, and the 2023 reform has further enhanced its appeal.
But the situation is changing. The latest Social Security financing law announces a major tightening of the rules. From 2027, the conditions will change. And for many future retirees, combining work and retirement benefits could lose much of its appeal.
Before anticipating these changes, it’s essential to understand the current system. Currently, two systems coexist: on the one hand, unrestricted income accumulation, and on the other, capped income accumulation. The former allows individuals to work without income limits, while the latter imposes a ceiling beyond which pension payments are reduced or suspended.
A system that remains attractive today
The unrestricted combination of pensions applies to retirees who meet two conditions. They must have reached the full pension rate. They must also have claimed all their pensions, both basic and supplementary. In this case, they can resume work without financial restrictions.
However, those who do not meet these criteria are subject to a capped combination of benefits. The principle remains simple: the sum of professional income and pension must not exceed a certain threshold. This ceiling generally corresponds to the average of the last salaries or 1.6 times the minimum wage if this option proves more advantageous.
The 2023 pension reform introduced a major change. Contributions paid during the combined pension period now grant new entitlements. Specifically, retirees can receive a second pension after they have definitively ceased working. Even though these entitlements remain capped, this development has increased the attractiveness of the system.
As a result, combining work and retirement is becoming a permanent feature of people’s lives. Increased life expectancy plays a key role, as does the desire to remain active. For some, working after retirement is a personal choice. For others, it allows them to maintain their standard of living.
Continued on the next page
ADVERTISEMENT
