Why some retirees might not receive the minimum pension of 1,200 euros?

Barthélémy Philippe, edited by Romain Rouillard
modified to

6:33 a.m., February 13, 2023

Flagship measure of the pension reform project, the minimum pension of 1,200 euros granted to all retirees who have contributed at the full rate to the SMIC during a full career should only concern a tiny part of them. It would, in reality, a revaluation of small pensions.

The famous minimum retirement pension at 1,200 euros has lead in the wing. During the presentation of the pension reform project, the government nevertheless assured that all employees, who can justify a full career contributing at the full rate to the minimum wage, could benefit from a minimum pension equivalent to 85% of the said minimum wage.

The government has communicated extensively on this measure, suggesting that nearly two million retirees could benefit from it. However, according to economist Michael Zemmour, the reality would be much less brilliant than expected and this flagship social measure of the text would no longer display the same ambitions.

“An increase in small pensions”

“There is no minimum pension reform of 1,200 euros in the reform. There is an increase in small pensions. This will concern approximately 20% of new retirees for an average amount of 33 euros and 10% of current retirees for an average amount of 56 euros, so it is an increase, there is no doubt. On the other hand, the only way to be able to pass the bar of 1,200 euros is to already be at more than 1,100 euros since the revaluation mentioned will have a maximum revaluation of 100 euros.

Still according to this economist, barely 5% of retirees, whose pension is less than 1,200 euros will pass this course thanks to the boost from the executive. Thus, if the reform were adopted, one in four retirees would still receive a pension of less than 1,200 euros. A figure very far from the ambition displayed by the executive.