French Pension System Explained

Many visitors in Paris are wondering why so many touristic places are closed during August – the peak of the tourist season. Frenchmen work so little and still able to retire, how? French pension system explained!

French Pension System Explained : The Qualifying conditions

In order to receive a pension you must be sixty two years old for both men and women who were born in or after 1955, and sixty years old if you were born before.

Unlike other countries, you don’t have to claim for pension rights, it is all done automatically as you get to the right age! The government prefer people to retire, they even fine workers who don’t take their pension and keep on working, these workers have to pay more taxes.

French Pension System Explained : How the pension is calculated?

There are three factors in the pension amount: your basic salary, the payment rate and the type of job.

The basic salary is calculated as follow: take the best 25 years in terms of salary, sum it all, and divide by 25*12 months. There you have it, the basic salary of your life.

The rate is the percentage of your basic salary that you will get. It’s somewhere between 37.5% and 50% of your basic salary. You’ll get higher percentage if you worked more years.

The type of job: some jobs get higher rate, for example veterans, women who raised 3 children etc.

French Pension System Explained : The Private Sector

There is more! If you worked in the private sector you paid to one of two compulsory fonds: the AGIRC for the managerial and executive staff and ARRCO for everyone else.

This is where it’s get really complicated because of a reform that was done. These pension is calculated by points that are given according the number of months you worked. But since these funds are new, there are many retired people who don’t have the necessary points. These folks need to find their old paychecks and try to make an estimation of their points. Sounds like a pain in the A$$ – it is. There is actually a movie called Mammuth with Gerard Depardieu about this.



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