Changes to Progressive Retirement and Extended Eligibility: Key Updates and Implications for Retirement Planning

2023-08-13 10:13:25

Progressive retirement is a device that allows an individual to combine part of his retirement pension with the income from his part-time professional activity. This system is regarding to undergo some changes from the start of the 2023 school year.

For employees born following January 1, 1968, the age of access to progressive retirement is raised by two years. It is now set at 62. For employees whose date of birth is between September 1, 1961 and December 31, 1967, this access age will increase gradually. It will be increased by three months per year of birth. If we take the example of an employee born in 1968, his retirement age will be 64, under the provisions of the pension reform. Regarding his age of access to progressive retirement, it will be set at 62 years.

An employee born between January 1 and August 31, 1961 has the option of retiring at age 62 and can consider phased retirement from age 60. In addition, an individual born in 1965 will be able to opt for retirement at 63 years and 3 months, and consider gradual retirement from 61 years and 3 months.

Progressive retirement extended to “sedentary” agents and to the liberal function

Civil servants” sedentary “, namely State officials, hospital service agents and territorial service agents, will now be entitled to this device, unlike civil servants ” assets “, what are the police or the caregivers. The liberal professions and lawyers will also be able, following the modification of the system, to access gradual retirement.

However, the changes made to phased retirement do not concern the contribution period. It was and will therefore remain 150 quarters, all mandatory pension plans combined. In addition, the reduction in professional activity must be done by switching to part-time work representing 40 to 80% of the working time of a full-time activity. During this period, the employee is required to continue to contribute in order to qualify for a full pension, while receiving part of his retirement pension. The amount of the fraction of the retirement pension received, through progressive retirement, will remain equal to the rate of reduction in working time.

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#upcoming #September #1st

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