A new measure will apply to French people who retire after January 1, 2027. Certain rules are tightening, and will have a direct impact on the portfolio of more than 710,000 retirees.
This is the invisible trap that no one saw coming for the generation of retirees of 2027. While thousands of future seniors are carefully planning their departure, a government measure is preparing to dampen their hopes of financial comfort. If you thought you had all the cards in hand to maintain your standard of living once your rights have been liquidated, think again: this reform risks sabotaging your plans and depriving you of a crucial income stream. A very unpleasant surprise which will force many French people to completely review their end-of-career strategy.
Whether to make ends meet because of a low pension, to stay active and avoid getting bored, or simply to make yourself useful… Many retirees continue to work, even if only partially, after the end of their career. There are precisely 710,000 in France, according to the latest report from the Court of Auditors. And this figure increases every year. On the other hand, from 2027, it could well fall drastically, as the rules will tighten for seniors who choose to combine employment and retirement pension.
The rules change for French people who will retire from 1er January 2027. Until now, full employment-retirement combination allowed eligible people to receive their entire pension while retaining income from their new activity, without any ceiling. This system even allows you to open up new retirement rights! As for the capped employment-retirement combination, less interesting than the first, it nevertheless remains more advantageous than what the new reform provides. From now on, the age at which they return to work will determine what retirees will be able to receive.
If you have retired and start working again before the legal retirement age, as with long careers for example, you will be particularly harmed. In this case, your retirement pension will be reduced by the amount of your new income. If your new job earns you 1,500 euros per month for example, your pension will be reduced by this amount… or even completely eliminated if it was already less than 1,500 euros. Concretely, combining employment and retirement will therefore no longer have any financial interest. To avoid this blow, you may have to consider retiring before the end of 2026.
For those who return to work after the legal retirement age, but before age 67, it will be possible to keep their new income, provided that it does not exceed 7,000 euros per year, or approximately 583 euros per month. If the threshold is crossed, 50% of the remaining amount will be withdrawn from the superannuation. For a job that pays 1,500 euros per month, this is equivalent to 18,000 euros per year, and therefore 11,000 euros in excess. The annual pension will be reduced by 5,500 euros, or approximately 458 euros less each month. Only retirees who return to work after age 67 will be able to receive all of their income, and continue to contribute for a second retirement, as is the case today with full accumulation. An exception is, however, provided for: retired doctors who continue to practice in areas under pressure should be exempt from this reform, as the government confirmed to West France.
This tightening of rules is obviously not to the taste of seniors, but not to that of businesses either. In an open letter to the government, published by The Echoesthe human resources department (HRD) of six large groups such as L’Oréal, Vinci and Bouygues, expressly requests the cancellation of this measure. They denounce “a major economic error” the effects of which are already being felt: “For fear of being penalized by the new rules, many seniors are bringing forward their retirement. Key skills are leaving companies earlier than expected, without the transfer plans being able to be completed.” In short, the groups already regret a gamble “loser for businesses, loser for the employment rate of seniors, loser for the economy”.
