Phased retirement in France – how to claim your pension early

Reader question: I’m approaching the official retirement age of 62. Can I work less and take part of my French pension to get the same income?

The answer is yes, provided you have been contributing to the French pension system for 37.5 years (150 pension contributions paid quarterly) and are 60 years old.

For most people, that means the two years between age 60 and the official retirement age of 62, or for the two and a half years before you reach the 40-year contribution limit that entitles you to a full pension when you start your first job at age 22 .

Called under an agreement progressive withdraw, which came into force in April, it is possible to use funds from the pension fund to reduce working hours in order to compensate for part of the lost earnings. You still pay into the fund to receive a full 40-year pension.

A special effort has been made in legislation to include independent workers and farmers, rather than employee-only benefits.

working hours

The working time reductions are specified for employees. You can use progressive withdraw Reduce your working hours by 40% to 80% per week, which is 14 to 28 hours per week if you are on a 35 hour contract.

For those on annual contracts (which may include managers), the requirement equates to a reduction of between 87 and 174 days per year.

how much do i get

The amount paid out by the pension fund is not fixed – it depends on the pension that you receive after 40 full years of contributions.

In principle, however, if you reduce your gainful employment by 25%, you are entitled to 25% of your future pension from the fund.

For the self-employed, the calculation is based on the declared income of the last year.

Independent workers can apply for pension top-ups to compensate for between 20% and 80% less earnings due to less work, but will receive 50% of their pension per month for the first year, with one-off adjustments up or down, as earnings for the full year are declared.

Who can apply – and when?

Employees can only go to the progressive withdraw system if their boss agrees, unless they work in an industry where there is a collective agreement allowing the system.

There is a six-month delay for the implementation of the agreement. This means that individuals who have (or will have) the equivalent number of quarterly contributions by their 60th birthday and wish to participate in the program should apply six months before their birthday.

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