Revaluation of the basic pension: how much will you lose with the delay?

By postponing the increase in the basic pension by six months, the shortfall for retirees should be around a hundred euros. Here’s what to expect based on your retirement level.

Good news then a little push. In September, nearly 850,000 low-income retirees benefited from an increase in their pension, on average by 50 euros. A measure included in the 2023 pension reform. But unfortunately, less than a month later, retirees are being asked to tighten their belts a little. Contrary to what was planned, their basic pension should not be increased on January 1, but on July 1. A gap which will lead to a shortfall in earnings for all retirees. Starting from the hypothesis put forward by Bercy of a revaluation of 1.8%we have calculated how much you will lose depending on your pension level, if you are a former private sector employee. Note that this discrepancy will be discussed as part of Parliament’s study of the Social Security budget in the fall.

If the basic pension in our example benefits from an increase of 1.8% on January 1, 2025, he will then receive 17.64 euros more per month. By postponing the increase in the basic pension by 6 months, the shortfall for our retiree would be 105.84 euros (17.64 x 6).

Our example, if his basic pension had been increased by 1.8% on January 1, 2025, would have received 20.70 euros more per month. By postponing this revaluation by six months, the shortfall for our retiree reaches 124.20 euros.

Assuming an increase in the basic pension of 1.8% on January 1, 2025, our example would have received 25.20 euros more per month. The six-month delay in revaluation, if we remain on a figure of 1.8%, will generate a shortfall of 151.20 euros (25.20 x 6).

For this last example, an increase in his basic pension of 1.8% allows him to earn 25.92 euros more per month. The shortfall in the event of a six-month delay in the revaluation would be 155.52 euros (25.92 x 6). Note that the basic pension is capped. It cannot exceed half of the monthly Social Security ceiling (3,864 euros in 2024). This figure is taken into account over the best 25 years for an employee. This ceiling increases each year, which explains why, in our simulations, the basic pension does not exceed 1,440 euros per month (while the ceiling in 2023 is 1,932 euros).

Thus, for a pension of 1,400 euros net per month, the shortfall is estimated at 105.84 euros, it is 124.20 euros for a pension of 2,300 euros and 151.20 for a pension of 2,800 euros. Then this figure plateaus. For a pension of 4,000 euros, the shortfall is estimated at 155.52 euros. In summary, the shortfall should not exceed 200 euros.