When it comes to retirement age, the French naturally think of the legal departure age. A terminal which should, as François Bayrou confirmed on Thursday, June 26, well and indeed be gradually noted to reach 64 years for workers born in 1968 or after. But if reaching this crucial threshold allows you to liquidate your retirement, it does not exempt you from a discount applied to amount of your pension. Pension which, for an employee of the private sector, corresponds to the average of income of the best 25 years of career, multiplied by the number of validated quarters compared to the number of quarters required, all multiplied by the full rate of 50% for ex-private schools.
For example, if you were born in 1963, that you have 170 insurance quarters (the duration required for your generation), and your average annual income over the top 25 years of your career is displayed at 40,000 euros, you will receive an annual pension of 20,000 euros (40,000 x 170/170 x 50%). On the other hand, if you have “only” 165 quarters, your pension will be much lower than this amount. First of all, because you lack quarters and your ratio of validated quarters in quarters are less than 1. but also because you will undergo a discount, that is to say a reduction in your pension, on the full rate (50%), up to 0.625% per missing quarter. Each of its quarters will therefore cause a loss of 1.25% on your retirement. With 5 missing quarters, you will therefore receive 18,199 euros (40,000 x 165/170 x (50% – 5 x 0.625%).
A calculation to do, according to your situation
A certain shortfall, that it is possible to cancel in part for employees who work up to 67 years, the age of cancellation of the discount. Also called the age of the full automatic rate, it allows to leave with the full rate of 50%. Our example, by reaching this terminal, will then see his annual retirement go to 19,411 euros (40,000 x 165/170).
If an employee must therefore wait for his 67 years to avoid the double penalty (missing quarters and discount), this threshold could decrease by six months, to 66.5 years, if one of the conclusions of the conclave on pensions is adopted by the Parliament in the fall, as part of the social security budget. “All participants agreed to improve the condition of people who had chopped careers, to lower the age of the 67 -year -old discount to 66.5 years”said François Hollande, Thursday, June 26. A measure that would allow workers who do not have all their retirement quarters to leave six months earlier, without undergoing a discount, therefore.
But beware, if it is obviously good news, it should not lure you. Because your missing quarters for achieving the full rate (170 quarters for the 1963 generation) will always be lacking. And leaving two quarters earlier will only increase your lack of missing quarters. To find out if it will be more interesting to liquidate your pension from 66.5 years old or wait 67 years, you would then be inspired to take out the calculator or to contact a retirement assessment expert.
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