The full combination of pension and salary, which is currently advantageous, will be profoundly modified from 2027. A reform, which has gone unnoticed, could reduce the income of many retirees, but potentially weaken, in the long term, public finances.
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Today, when a retired person receives a full pension and also carries out professional activity, full accumulation of retirement pension and salary is authorized, without any income limit. In the event of early retirement, the accumulation of pension and salary also remains possible, but within the limit of a ceiling, making the current regime a particularly favorable regime.
This situation will change and become much less advantageous soon: each euro earned through professional activity will be deducted from the retirement pension. This measure will concern people retiring early, that is to say before the legal age, set at 64 years ultimately with the Borne reform. It will also apply to retirees benefiting from a full pension, and aged under 67: their pension will be reduced as soon as their earned income exceeds 7,000 euros annually.
With this new system, Social Security hopes to achieve savings of several hundred million euros. Currently, combining employment and retirement works particularly well: nearly 700,000 people use it. This represents six to seven billion euros in pensions paid each year. The objective is also to encourage seniors to stay in employment as long as possible, so that they trigger their retirement rights as late as possible.
A change considered much more important, according to certain economists, such as Philippe Askenazy, than the suspension of the Borne reform, widely discussed in recent months. This is neither a suspension nor a pause: the entry into force of these new rules is planned in one year, i.e. at the beginning of 2027. As a result, there is a risk of impoverishment of retirees, but also of public finances.
To avoid a drop in their standard of living, some retirees could continue to work without being declared, or only partially. A situation which would de facto lead to a reduction in social security contributions and, consequently, a reduction in tax revenue for the State.
