Phased retirement: how much can you expect to earn with this end-of-career scheme?

Phased retirement: how much can you expect to earn with this end-of-career scheme?

Progressive retirement allows employees to work part-time, while receiving part of their basic and supplementary pension, from the age of 60. We take stock of who can benefit from it and to what extent.

Do you want to retire smoothly? Phased retirement is for you. It allows the employee to work part-time, while receiving part of his pension, basic and supplementary. 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, taken into account when calculating his final retirement.

Who can claim it?

Employees, those on a day package since January, and the self-employed are eligible.

To benefit from progressive retirement, you must provide proof of at least 150 quarters of insurance validated in all mandatory retirement schemes, and reduce your professional activity to a period of between 40% and 80% of the legal working time or conventional, recalls the Carsat.

How is phased retirement calculated?

To determine the amount of your progressive retirement, a provisional retirement is calculated on the basis of your rights at the time of your request.

The provisional retirement is calculated according to the same rules as a permanent retirement according to your number of quarters of retirement insurance and your average salary during your 25 best years.

The portion of your provisional pension paid to you is equal to the difference between 100% and your part-time or reduced-time work.

For example, part-time or reduced to 65% entitles you to 35% of your provisional pension, specifies the public service website. 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. It totals 156 quarters of retirement (out of 168 necessary for the full rate). Her average annual salary (SAM) is €32,000 and she has accumulated 6,000 Agirc-Arrco points for the supplementary pension. His current monthly salary is €3,500. She decides to resort to phased retirement.

She will receive 75% of her salary and 25% of her retirement pension:

  • his monthly salary will be 3,500 x 75% = €2,625;
  • his 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 drop in income caused by its reduction in working time, gives for example Retirement in plain sight on his site.

What are the advantages ?

You continue to contribute for your retirement as long as you work part-time. When you request your final retirement, the amount will be recalculated taking into account these contributions.

Subject to the agreement of your employer, you can also contribute for the pension on the basis of the full-time salary for your part-time activity. This allows you to obtain a pension of an amount identical to that which you would have received by working full time.

For how long can you benefit from it?

Progressive retirement is paid to you for at least one year, even if during this year, your part-time contract is modified (it must however respect the 40% minimum and 80% maximum). Then, it can be revised by period of one year if your contract changes. If you cease your part-time activity and resume full-time, progressive retirement is cancelled.
During the service of the progressive retirement, you are questioned every year on the duration of your part-time activity.

As a reminder, the transition from gradual retirement to full retirement is not automatic. You must notify Carsat and complete a form called “request for personal retirement”. Your full pension is then recalculated taking into account, in addition, the salaries, and therefore the additional quarters, of your part-time activity.

What about the complementary Agirc-Arrco?

The conditions to be met and the calculation methods are the same as in the basic plan, except for one detail. If you are missing quarters, your additional benefits will be reduced by a specific reduction rate for progressive retirement

How to apply?

The request cannot be made online. You must use the Cerfa 50298*07 printout to download 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 effect on the date of the start of your progressive retirement), a sworn statement attesting that you have no other activity than part-time, and finally a certificate from your employer which specifies the legal working hours in your company.

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