Retirement pensions will increase more than expected from January 1, due to government censorship. Here’s what will happen to retirees.
It was expected, it is now confirmed: Michel Barnier and his government have just been overthrown after the adoption of a motion of censure by more than half of the deputies. Direct consequence: all the legal texts that were under discussion fell through and were abandoned. This is not without consequences on the finances of the French, particularly those of retirees.
However, for the 18 million seniors who no longer work and who receive a pension every month, this political big bang will ultimately be… beneficial to them! Indeed, retirees will be able to benefit from this censorship. Thanks to this, their pensions will increase more than initially planned and, above all, earlier than planned.
Due to a legislative micmac, all retirees will see their basic pension paid by Carsat increase by the level of inflation, around 1.6%, as soon as the new year begins. Goodbye therefore to the revaluation of twice 0.8%, in two stages, accompanied by a bonus. Exit the complexity, the matter is now clearer and simpler. And too bad for the savings that this was supposed to generate.
20:52 – Will censorship have an impact on the CSG and, therefore, the amount of pensions?
No. Regardless of whether the government is overthrown or not, it will have no impact on the level of the CSG. In accordance with the Social Security Code, the various thresholds will be revalued on January 1, by the level of inflation measured in 2023.
8:40 p.m. – An increase of 0.8% or 1.6%, what does that change in concrete terms?
For retirees, the debates which took place in the National Assembly seem superfluous as the sums in question are so modest for them. For a retiree who receives €700 from Carsat, an increase of 0.8% would have increased the pension to €705.60/month, while an increase of 1.6% would increase it to €711. .20€/month. For a pension of 1000 euros, this allows you to go from 1008 to 1016€. For most retirees, going from 0.8 to 1.6% increase allows them to gain around an additional hundred euros over the year.
20:31 – When will we know the exact rate of increase in basic pensions?
The exact figure for the increase should be known in December. We must wait for INSEE to reveal the inflation recorded for the month of November. Indeed, the rate is “calculated on the last twelve monthly price indices published by INSEE the penultimate month preceding the date of revaluation of the services concerned”. Concretely, this will involve calculating the inflation experienced between December 2023 and November 2024. However, for November, the data has not yet been published.
20:28 – How much will basic retirement pensions increase?
According to projections made by the government, basic retirement pensions will be increased by 1.6% from January 1. The exact figure has not yet been determined but it will be in this order of magnitude.
20:27 – The motion of censure adopted
The motion of censure has just been adopted in the National Assembly. The social security financing bill is therefore rejected. Thus, retirement pensions will indeed increase on January 1 by the level of inflation, once and for everyone. The increase will not be carried out in two stages as initially planned.
14:52 – What increase for basic pensions in the event of censorship?
If the motion of censure succeeds and is adopted, it would be good news for retirees. Indeed, the Social Security financing bill (which provided for a smaller increase) would be obsolete and the rule enshrined in the Social Security Code would then apply, namely an increase in the level of social security for everyone. inflation observed between November 2023 and October 2024. This would correspond to 1.6%.
14:24 – What could happen if the motion of censure is adopted?
If the motion of censure is adopted this Wednesday, leading to the fall of the government, this will not have a negative impact on retirees. First of all, pensions will continue to be paid as usual. No interruptions will take place. Moreover, it could even benefit them financially.
11:48 – What is the increase expected on January 1?
As things currently stand, the increase in basic pensions will be 0.8% on January 1st. Thus, for a retiree who receives €800 from Carsat, the amount will increase to €806.40. For a basic pension of 1000 euros, this will increase to 1008€. But things could change if government censorship is voted on.
11:18 – What retirement pensions will increase on January 1st?
On January 1, these are the basic pensions paid by the Cnav (National Old Age Insurance Fund), the SRE (Service des pensions of the State), the CNRACL (National Fund for Local Authority Agents) and the National Old Age Insurance Fund for Liberal Professions (CNAVPL). Also affected by this increase are people receiving a survivor’s pension, the supplementary disability allowance (ASI) or the solidarity allowance for the elderly (Aspa).
11:00 – Which retirees will receive a raise on January 1, 2025?
On January 1, all retirees, whoever they may be, will benefit from an increase in their basic retirement pension. No distinction will be made. The 17 million retirees will receive a higher transfer. It remains to be seen how much.