Progressive retirement allows employees to work part-time, while receiving part of the basic and supplementary pension, from the age of 60. Let’s take stock of who can benefit from it and to what extent.
Do you want to retire without problems? Gradual retirement is for you. It allows the worker to work part-time, while receiving part of the basic and supplementary pension. Explanations.
At what age can this device be accessed?
From 60 years old. The employee continues to acquire pension rights during the period of reduced activity, which is taken into account in the calculation of his final retirement.
Who can claim it?
Employees, those with a day package from January and self-employed workers are allowed.
To benefit from progressive retirement, you must provide proof of at least 150 validated insurance quarters in all statutory pension schemes, and reduce your professional activity to between 40% and 80% of your legal working time or conventional, remembers the Carsat.
How is gradual retirement calculated?
To determine the amount of your progressive retirement, a provisional retirement is calculated based on your entitlements at the time of your application.
Provisional retirement is calculated according to the same rules as permanent retirement based on the number of quarters of the old-age insurance and the average salary during the 25 best years.
The portion of the provisional pension that is paid to you is equal to the difference between 100% and your part-time or part-time job.
For example, part-time or reduced to 65% entitles you to 35% of temporary retirement, specifies the website of the Public Service. To your calculators!
An example to understand
Sylvie was born in 1961. She turns 60 in 2021 and wants to work 75% of her full time. Altogether they amount to 156 retirement quarters (out of 168 required for the full rate). Her average annual salary (SAM) is 32,000 euros and she has accumulated 6,000 Agirc-Arco points for the supplementary pension. Her current monthly salary is € 3,500. You decide to take gradual retirement.
You will receive 75% of the salary and 25% of the old-age pension:
- your monthly salary will be 3,500 x 75% = € 2,625;
- your monthly pension will be € 1,613.42 (see calculations below) x 25% ≈ € 403.36.
In total, Sylvie’s monthly income will amount to 2,625 + 403.36 = € 3,028.36. Progressive retirement therefore makes it possible to cushion a large part of the decline in income caused by the reduction in working hours, for example Retirement in plain sight on his site.
What are the benefits ?
You continue to contribute to your retirement as long as you work part-time. When you apply for your final retirement, the amount will be recalculated taking these contributions into account.
With the agreement of your employer, you can also contribute to the retirement based on your full-time salary for your part-time business. This allows you to get a pension of the same amount as you would have received working full time.
How long can you benefit from it?
The progressive pension is paid to you for at least one year, even if your part-time contract is changed during this year (it must still respect the minimum of 40% and the maximum of 80%). Hence, it can be revised for a period of one year if your contract changes. If you stop working part-time and resume full-time, your progressive retirement is canceled.
During the progressive retirement service, each year you are asked about the duration of your part-time activity.
Please note that the transition from gradual retirement to full retirement is not automatic. You must notify Carsat and fill out a form called a “personal retirement application”. Your entire pension is then recalculated taking into account the salaries, and therefore the additional quarters, of your part-time activity.
And the complementary Agirc-Arrco?
The conditions to be met and the calculation methods are the same as for the basic plan, except for one detail. If the quarters are missing, the additional benefits will be reduced by a specific reduction rate for progressive retirement
How to apply?
The request cannot be made online. Cerfa form 50298 * 07 must be used, which can be downloaded from www.lassuranceretraite.fr.
Carsat specifies that in addition to the request for progressive retirement, you must attach a photocopy of your part-time employment contract (contract in force at the start date of your progressive retirement), a sworn statement certifying that you have no other activity than part-time and finally, a certificate from your employer specifying the legal working hours in your company.