At what age do you really retire in France? How much is the average pension? While pensions occupy the center of parliamentary news with the examination of the Social Security budget and the plans to repeal the 2023 reform, Drees publishes this Wednesday its annual balance on retirements and retirees. Summary of the main lessons.
A pension of 1,512 euros net on average
According to this study, France paid pensions to 17 million “direct right” retirees in 2022 (+175,000 compared to 2021), of which 53% were women. Around 900,000 more people only receive a survivor’s pension. Since 2010, the number of retirees has increased by about 1% annually on average. It increased more rapidly between 2005 and 2010 (+2.6% on annual average).
According to the latest available figures, the average gross pension (excluding survivor pensions) of retirees residing in France amounted to 1,626 euros gross (1,512 euros net) in 2022. It increases by 5.4% in current euros but falls by 0.4% in constant euros between 2021 and 2022.
In the long term, from the end of 2012 to the end of 2022, the purchasing power of the majority of insured persons, resident in France and who settled their pension before 2012, experienced an erosion: their gross pension decreased by 5.5% in “ constant euros”. (adjusted for inflation). However, if we take into account the new entrants to the system, with generally higher pensions, global purchasing power has increased slightly (+0.8% in ten years).
It should be noted that the pension of retired women is 38% lower than that of men (1,268 euros, compared to 2,050 euros). The difference tends to reduce, since in 2004 it was 50%. Taking into account the possible survivor’s pension, the difference is reduced to 26%.
With €353 billion paid in 2022, pensions continue to constitute the largest item of social protection spending (13.4% of gross domestic product and 41.5% of social protection benefits). Between 1990 and 2022, this share of GDP increased from 10.0% to 13.4%, in several waves.
Later exit
At the end of 2022, the average retirement age will be 62 years and 8 months for direct pensioners residing in France. It has increased two years and two months since 2010, mainly as a result of the 2010 pension reform.
Drees predicts that the 2023 reform – which raised the legal age to 64 – will have a less significant effect, with a six-month postponement of the average age. Women date on average 8 months later than men, at age 63, compared to 62 years and 4 months. The gap gradually narrows over generations.
Standard of living above assets
The average net pension is lower than the average salary. But, taking into account all resources, particularly assets, and the composition of households (dependent children), the standard of living of retirees is “slightly higher than that of the entire population,” analyzes Drees.
In 2021, the average standard of living of retirees living in mainland France in ordinary housing (excluding nursing homes, etc.) amounted to 1,970 euros per month, 2.1% more than that of the entire population (1,930 euros ). The gap is even greater if we take into account the fact that retirees tend to own their home and, therefore, pay less rent.
According to the latest available data (2019), with the housing effect, the average standard of living of retirees was 9.5% higher than that of the rest of the population.
less poverty
About 10% of retirees live below the poverty line, compared to 14.5% of the general population and 20.6% of those under 18 years of age. At the end of 2022, 691,000 people benefited from a minimum old-age benefit, that is, 4.1% more than at the end of 2021. But one in two eligible households does not apply for it.
Source: BFM TV
