Will phased retirement take off? | EUROtoday

Will phased retirement lastly take off? This system, which permits seniors to cut back their working hours by partially compensating for the drop in wage by means of the early fee of a part of their retirement pension, was lately put again on the negotiating desk.

During his basic coverage declaration, on 1^er October, the Prime Minister, Michel Barnier, thought of that he constituted one of many three “accommodations, reasonable and fair” to pension reform, calling on the social companions to take it on board. For her half, Marylise Léon, the final secretary of the CFDT, advocated, on October 8, on the microphone of France Inter, a “generalization of progressive retirement from age 60 without conditions”.

According to Retirement Insurance, 26,824 staff benefited from this method in 2023 and 13,432 new progressive retirements have been granted that yr, in comparison with 13,640 in 2022. The uncommon beneficiaries go underneath the radar and are scattered all through the financial cloth , and go underneath the radar on the company degree, which don’t formalize the system in agreements.

Furthermore, the Ministry of Health notes that 73% of “progressive” retirees are girls in 2021. The cause? Due to disrupted careers following motherhood, girls are compelled to work longer and are subsequently extra tempted to resort to it to comfortably handle the tip of their working life.

Unfounded fears

Despite a five-fold enhance within the variety of “progressive” retirees from 2015 to 2020, this method is now stalling, and solely appeals to a marginal phase of the eligible inhabitants. According to the Agirc-Arrco supplementary pension plan, solely 2% of its new beneficiaries subscribed to it on common from 2019 to 2022. Member of the AG2R La Mondiale group administration committee liable for supplementary pension, François Ringaud explains this truth by there “employees’ lack of knowledge of this system, fear that it will be too complex or penalizing”.

Unfounded fears, in keeping with him, since supplementary pension specialists can perform very exact simulations on the shortfall, which is dependent upon the period of part-time chosen (between 40% and 80% of the authorized weekly period relevant within the enterprise). “This is not a leap into the unknown, and for many employees, the loss of income remains reasonable,” assures François Ringaud. Knowing that the pension is calculated over twenty-five years, the lack of pension is successfully smoothed out for workers who’ve had steady careers. “But those who have experienced chaotic journeys may hesitate,” nuance Denis Gravouil, confederal secretary of the CGT.

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