Pensions in France

PENSIONS IN FRANCE

Some of you are working in France and are therefore entitled to a French pension. Here is an explanation of how it works and how to get it.

Introduction: There are 2 pensions in France: the “retraite de base”, which applies to everyone and is equivalent to your State Pension in the UK, and the “retraite complementaire”, which is different for employees and the self-employed. Note that pensions in France are based mainly on 2 things: how long you have worked and how much you have earned.

1. La retraite de base: 

1. How long you have to work: The official retirement age is 64 (since the 2024 reform), but this does not mean you will get full pension at that age. To qualify for a full pension at 64, you must have worked 172 quarters if you were born after 1972 (168 quarters if you were born in 1961, 62 or 63, and between 168 and 172 quarters for those born between 1961 and 1972). A full pension means the maximum rate, which is 50%! Yes, start dreaming!!
2. The rate: The maximum rate is 50%. You get the maximum rate in 2 cases: either you retire at age 67, regardless of the number of quarters you have worked, or you retire at age 64 with the required number of quarters. If you retire before 67 and do not have the required number of quarters, your rate is reduced by 0,625 per missing quarters. For example, if you have worked 170 quarters instead of 172, your rate will be 48,75% instead of 50%. Note that the minimum rate is 37,50% regardless of the number of quarters you have worked. However, you must have registered at least one quarter to qualify.
3. How is it calculated: It is calculated on the average of your best 25 years of income, capped at one PASS (plafond annuel de la Securite Sociale), which is 47100€ in 2025. So, if your average earnings exceed 47100€, tough luck!

This is the formula for the calculation:

Average income X pension rate X (Quarters worked/Quarters required). Example: your average income is 25000€ and you qualify for full pension (50%), the calculation is: 

25000€ X 50% X (172/172) = 12500 euros per year in French state pension. 

If you have worked less than the required quarters, let’s say 170 instead of 172, your state pension will be 25000€ X 48,75% X (170/172) = 11859 euros per year.

4. Children: Yes, having children entitles you to 8 quarters per child, as long as you have  raised them. And if you have 3 or more children, your pension increases by 10%. The 10% increase applies to both fathers and mothers, but the additional quarters are granted only to mothers.

2. La retraite complementaire: It works in points. Basically, your income earns you points while you work (the more you earn, the more points you get). When you retire, the points are converted into money. It is capped

1. For employees: It is called AGIRC-ARRCO. The rate for earning points when you work is 6,20% (and 17% for earning between 47100€ and 376800€). 

While you work the points cost 19,63€ but they are worth only 1.43€ when you retire!! Yes, daylight robbery! 

So, for an average 20 000€ income, you will get a pension of 3984€ (2779 X 1,43€) per year on top of the French state pension above.

2. For self-employed: Same as above, but with different contribution rate. You contribute 7% on earning up to 38493€,and 8% for earnings between 38494 and 164544€. 

You buy the points at 17,765€ while you are working, however it is worth ONLY 1,208€ when you retire!! 

So, an average yearly earnings of 20000€ per year for a self-employed will entitle a complementary pension of 4188€ per year. 

If you are “profession liberale” (meaning consultant, teacher, etc), you only start to buy points on earning above 41137€ and the rate is 17%. 

So, if you are a self-employed teacher and earn an average of 20000€ per year for 44 years, you do not have a retraite complementaire!!!

Note also that this complementary pension is reduced if you do not have the right number of quarters worked.

3. Auto entrepreneur: Below are the minimum amounts you must earn in 2025 to validate your quarters for the French state pension:

BIC is industrial and commercial income (Bénéfices Industriels et Commerciaux) which include “artisan, commercant” and BNC is non commercial (Bénéfices Non Commerciaux ) which include “profession liberale” like consultant, teacher, etc.

As an auto entrepreneur, you are also entitled to the “retraite complementaire” with the points system. Normally you can see how many points you have on your URSSAF page.

4. You have worked abroad: If, like me, you have worked abroad, the years you have worked are taken into account for the calculation of your quarters, but not your average income.
5. Web sites: Worry not, you can go to this fantastic website https://www.info-retraite.fr/ , create your personal account, and view a summary of your career. It shows who you’ve worked for, how much you’ve earned, and how many quarters you’ve accumulated. It also shows an estimate of how much pension you will get. 

An even better one is this one: https://www.lassuranceretraite.fr/ where you can do all the above but also officially ask for your pension. That’s right, if you don’t ask to receive your pension, you won’t get it!!

And obviously if you are an auto entrepreneur, you can also find some useful information on your URSSAF personal page.

6. How to go further: Now that you know you won’t get much; it is time to prepare for it, and the best way to do that is to save money! No surprises here, unless you win the lottery. We have a wide range of investments, pension plans, and other schemes, some of which even offer tax credits if you save for your pension. So, feel free to contact me for more information.

Conclusion: Pensions can be a bit complicated, but the French government website is very useful, though it can be a bit scary when you see how little you will get. Note that you cannot complete your career (for work done abroad or if you think something is missing) until you reach 55 years old.