Preparing for retirement involves estimating the gap between future pension income and actual expenses, then implementing mechanisms to bridge that gap. The French system combines a basic pension, a complementary pension, and, in some cases, additional savings schemes like the PER. Understanding how these three layers interact is crucial for all subsequent decisions.
Basic pension, complementary pension, and PER: three layers to distinguish
The basic pension pays a benefit calculated based on the best annual salaries and the number of validated quarters. The complementary pension (Agirc-Arrco for private sector employees) operates through points accumulated throughout one’s career. These two layers are mandatory and directly depend on the duration of employment.
The third layer, which is optional, relies on individual savings. The Retirement Savings Plan (PER) allows for the accumulation of capital or an annuity while benefiting from a tax deduction upon entry. Contributions made to a PER are deductible from taxable income up to an annual limit, making the scheme even more advantageous for high-income taxpayers.
A common mistake is to consider these three levels separately. Before subscribing to a savings product, one must first know the estimated amount of the first two layers. It is on this basis that the additional income to be generated independently is calculated, as detailed on the retirement page of A Vos Finances in its tiered approach.
Career statement and simulation: concrete tools to estimate your pension
The Info Retraite website centralizes acquired rights from all mandatory funds, regardless of professional background. The online retirement account allows users to view their career statement, identify any anomalies (missing quarters, unreported salaries), and initiate a personalized simulation.
Checking one’s career statement several years before retirement provides time to correct errors. Periods of unemployment, illness, or maternity should appear as assimilated quarters. A late-detected omission complicates the regularization process.
Pension amount simulation
The retirement account simulation tool offers several scenarios based on the intended retirement age. Retiring before the full-rate age results in a reduction, while retiring later may generate an increase. The pension gap between early retirement and deferred retirement can amount to several percentage points per year, which warrants a precise calculation rather than a vague estimate.
This simulation provides the foundation for determining the effort required for additional savings. Without this reference figure, any investment strategy is built on empty ground.
Retirement savings strategy: adapting risk to the investment horizon
The guiding principle is simple: the further away the retirement horizon, the more volatility can be tolerated. An asset holder aged 35 has several decades to absorb fluctuations in the stock markets. Ten years before retirement, the priority shifts to securing the accumulated capital.
This logic is concretely reflected in the management of a PER:
- For a long horizon (more than fifteen years), an allocation predominantly invested in stocks and real estate (SCPI, OPCI) increases returns through compound interest
- For an intermediate horizon (five to fifteen years), a gradual rebalancing towards bond funds and capital-guaranteed supports reduces exposure to stock market shocks
- For a short horizon (less than five years), the secured portion becomes dominant to protect the capital at the time it is converted into an annuity or withdrawn
Diversification is not only about asset classes. Spreading savings across several envelopes (PER, life insurance, rental real estate investment) avoids concentrating risk on a single tax mechanism or market.
Employment-retirement combination: a scheme changing in 2027
Progressive retirement, effective from September 1, 2025, is open to all categories of workers who have reached 60 years of age: private sector employees, civil servants, traders, artisans, and agricultural sector employees. This scheme allows for a gradual reduction in activity while receiving a portion of the pension.
The employment-retirement combination will see significant tightening. The 2026 Social Security financing law provides that for the first pensions effective from January 1, 2027, a possible reduction in the pension before age 67 will occur if professional income exceeds a regulatory threshold. The precise terms remain to be confirmed by decree.
Three age brackets, three distinct regimes
The future scheme will distinguish situations based on age:
- Before the legal retirement age, the combination will remain heavily regulated
- Between the legal age and 67, a reduced pension will apply if income from activity exceeds the set threshold
- From age 67 onward, full combination would be maintained without income conditions
The current rules for the combination remain applicable to pensions liquidated before the regulatory change in 2027. Self-employed professionals have a particular interest in examining their retirement effective date before liquidating their rights, as the liquidation schedule will determine the applicable regime.
Retirement preparation calendar: when to act according to your age bracket
Waiting until the last year to consider retirement exposes one to surprises regarding the pension amount and leaves little room to correct a savings trajectory. An initial career assessment around age 45 allows for the detection of statement anomalies and adjustment of the long-term investment strategy.
Between ages 55 and 60, the priority shifts to securing accumulated savings and choosing between capital withdrawal or annuity from the PER. This choice depends on the marginal tax rate at the time of withdrawal, the presence or absence of other income sources, and the overall financial situation.
Retirement preparation is not a one-time event but an iterative process. Each change in professional situation (promotion, unemployment period, becoming self-employed) alters the equation and justifies an update of the simulation. The employment-retirement combination rules that will come into effect in 2027 remind us that the regulatory framework evolves regularly, making periodic monitoring all the more necessary.
