François Bayrou announced a reform of tax reduction of 10% applicable to retirees, Announcing the clues chosen by the Government To achieve “43.8 billion savings” in the 2026 budget.
The Minister of the Economy, Éric Lombard, said that the contours of this modification. “We will transform the 10% deduction into a deduction of 2,000 euros for all retirees,” he said in France 2.
Until now, a fiscal niche allows retirees to benefit from a 10%reduction, created to put them equally with assets, which benefit from said provision due to their professional costs in the calculation of income tax.
According to the Court of Auditors, the cost of the 10% reduction in pension amounts (including alimony) and pensions is estimated at 4.5 billion euros in 2023. Royal retiree pensions could also fall slightly due to the “white year” desired by the Government.
Life standard slightly higher than assets
“At the end of 2022, the average monthly pension of the direct law of retirees residing in France amounts to 1,626 euros gross, or 1,512 euros of social security contributions,” he told the DREES (Directorate of Research, Studies, Evaluation and Statistics) in his latest report.
The statistical institute indicated that the average living standard of retirees is slightly higher than that of the entire population, taking into account that they rarely depend on heritage and more patrimonial income. A recent Insee note shows that “people 65 years of age or older contributed for approximately two thirds of the increase in the savings rate between 2023 and 2024”.
Source: BFM TV
