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French pension amounts

Posted by Big Bear-323387 - Created: 5 years ago
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2 replies (Showing replies: 1 to 2)

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Posted by mazzeo - 5 years ago

in my experience, it does depend on your own situation - whether you are an employee, self employed, public servant etc.  Each regime is slightly different.

Where I disagree with the post above, is that the majority of pensions in France are in the Private sector where the regime de base is based on #trimestres, #age of retirement and #earnings.

At today's rates, a private sector employee working 164 trimestres, taking no early retirement, can expect to gross upto 50% of the average of their best 25 years salaries (eg final salary pension).

In addition to this are the retraite complementaire, which as the other poster says are investment funds..

Self employed have different schemes...

Of course this could all change tomorrow...

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Posted by JJ-183649 - 5 years ago

The state one is largely, if not totally (at least if you earn more than the SMIC, someone clarify?) just based on trimestre and not to do with contribution per se. Complementaire is based on how much you pay in over the years; you cannot "touch" your complementaire until you have the right to retraite, i.e. when you have enough trimestres and you can draw the state pension. Complementaire here is "mutualiser", i.e. you cannot decide how it is invested over the years of contribution, and certainly not manage or influence how your money to which you are entitled is given to you (retire and receive your monthly pension, not a lump sum or part thereof which you can invest as you see fit as you can in e.g Australia).

 

BTW, both state and complementaire are going bust!! Discussions between government and 'partenaires' to fix this, currently on-going, and certainly before 2017 when the major complementaires go bust..... I guess some sort of 'solution' will be found sooner or later, but you can bet your bottom euro that the ones loosing-out will be the pensioners (or to-be).

Steve