France Pension and Retirement Guide
the French pension and retirement system. The guide covers: the state pension (régime général de la Sécurité Sociale) — the basic state pension is a pay-as-you-go (PAYG — répartition) system; the pension is calculated using the formula: Pension = Annual Average Salary (SAM — Salaire Annuel Moyen, the average of the 25 best years) × the "taux de liquidation" (the rate, up to 50%) × the "durée d'assurance" (the number of quarters validated / the number of quarters required); the full-rate pension (taux plein — 50%) is available at the legal retirement age (the "âge légal de départ à la retraite" — currently 62–64 depending on the year of birth, rising to 64 by 2030 under the 2023 reform); the minimum number of quarters is 172 quarters (43 years) for those born after 1973; the pension is revalued annually by the inflation index; the supplementary pension (AGIRC-ARRCO) — the mandatory supplementary pension for all private-sector employees: the pension is calculated in "points" (points de retraite): each year, the employee and employer contribute a percentage of the salary, which is converted into points based on the "valeur d'acquisition du point"; at retirement, the total points are multiplied by the "valeur de service du point" (approximately €1.414 per point in 2026); the AGIRC-ARRCO points are indexed annually; the PER (Plan d'Épargne Retraite) — the voluntary individual retirement savings plan introduced in 2019 (replacing the former PERP, PERCO, and Madelin contracts): contributions are deductible from taxable income up to the "Plafond Annuel de la Sécurité Sociale" (PASS — approximately €46,368 in 2026) for the PER individuel; the employer's contributions to the PERECO (the collective PER) are also deductible up to the PASS; the funds are locked until retirement (except for early withdrawal events: death, disability, over-indebtedness, or the purchase of the main residence for the PER individuel); at retirement, the funds can be withdrawn as (a) a lump sum (the "capital" — only a portion of the lump sum is taxable: the contributions that were deducted are taxed as a pension at the progressive rate, but the gains are subject to the PFU), or (b) a lifetime annuity (the "rente viagère" — the annuity is taxed as a pension at the progressive rate, with a 10% deduction); the pension income taxation — the state pension and supplementary pension are taxed as "pensions et retraites" in the personal income tax return; the 10% standard deduction applies (with a minimum of €433 and a maximum of €4,571); the social charges on pension income are 9.20% (CSG 8.40% + CRDS 0.50% + CASA 0.30%) — the reduced rate applies to pensioners below certain income thresholds; the pension contribution gaps — if the taxpayer does not have enough quarters at retirement, the rate is reduced by a "décote" (a permanent reduction of 1.25% per missing quarter); if the taxpayer has more than the required quarters, the rate is increased by a "surcote" of 1.25% per additional quarter; the minimum pension (minimum contributif) — a minimum pension of approximately €10,000–€12,000 per year for low-income retirees who have contributed for the full required number of quarters.
The French pension system is undergoing significant reform, with the 2023 reform raising the retirement age and modifying the contribution and indexation rules. All amounts in Euros (EUR). For related reading, see our Personal Tax Guide → and Social Charges Guide →.
State Pension Calculation
- Formula: The state pension ("pension de base") = SAM (average of the 25 best years, revalued by the inflation index) × taux de liquidation (50% at full rate) × durée d'assurance (quarters validated / quarters required). Example: SAM = €40,000, taux = 50%, 172/172 quarters = €20,000/year. The supplementary pension (AGIRC-ARRCO) adds approximately €8,000–€12,000/year for a mid-career professional.
- Retirement age: The 2023 reform progressively raises the legal retirement age from 62 to 64 years (for those born after 1968). The full-rate age (the "âge du taux plein automatique") is 67. Early retirement is possible for: (a) long careers (départ anticipé pour carrière longue): those who started working before age 20 can retire at 58–62, (b) disability, (c) arduous work (the "pénibilité" — exposure to night work, noise, heat, chemical agents).
PER — Plan d'Épargne Retraite
- Tax deduction: Contributions to the PER individuel are deductible from the taxable income up to 10% of the PASS (10% × €46,368 = €4,637 for employees) or 10% of the professional income (capped at 8 × PASS for the self-employed). The employer's contributions to the PERECO are also deductible up to the PASS. The deduction reduces the taxable income at the marginal rate.
- Withdrawal at retirement: The funds can be taken as a lump sum (capital) or an annuity (rente). The tax treatment: (a) the capital — the portion corresponding to the contributions that were deducted (approximately 60–70% of the capital) is taxed as a pension at the progressive rate; the gains portion (approximately 30–40%) is subject to the PFU (30%) or the progressive rate; (b) the annuity — the total annuity is taxed as a pension (progressive rate with the 10% deduction), plus social charges (17.2% on the gains portion).
For the social charges on pension income, see our Social Charges Guide →. For the personal income tax filing for pensioners, see our Tax Filing Procedures Guide →.