freeze of retirement pensions and tax on high incomes

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Retirees put to work to cover the state deficit. Their pensions will be frozen in 2026. Bad news for Christiane and André Canella. With their 2,700 euros between them, they count every euro: “We are far from returning to the lifestyle we had while working. So that will be a problem.“If their pensions are not going to increase, this is not the only effort that some retirees will have to make. No more 10% reduction, it will be a lump sum of 2,000 euros.

The wealthiest retirees should therefore pay more and the poorest should benefit from this reform. This is the case of Michelle Pagan with her pension of 1,000 euros per month: “For me, it will benefit me because I have a small pension thanks to my husband who did not declare me for 15 years at the restaurant, so I have a small pension. So, I try to touch everything I can.“Better off, Pierre Duballet, a former computer scientist, says he is ready to make a move:”Money must be found everywhere and I am ready to contribute a little to improve finances.“

Retirees are not the only ones involved. The richest will also have to put their hands in their pockets with a minimum tax rate of 20%. Finally, the government wishes to limit their tax optimization by taxing their family holding company.

In total, the new compulsory deductions should allow the State to collect nearly 14 billion euros. “There will be tax increases for the wealthiest citizens and for middle-class citizens, this will rather result in a reduction in public spending“, analyzes Eric Heyer, director of the Analysis and Forecasts department at the OFCE. A reduction in spending which will notably involve a freeze in social benefits.