France considers pension freeze for higher-income retirees

The French government is considering a freeze on pension increases for higher-income retirees as part of upcoming budgetary decisions. The proposed measure would target individuals receiving more than 3,000 euros per month, a group representing approximately 8% of pensioners according to Drees data.

Economists warn that such a freeze could impact purchasing power. Mathieu Plane of the OFCE estimates that for retirees earning between 3,000 and 4,000 euros monthly, the loss could amount to 400 to 500 euros per year. This is because a freeze would prevent pensions from adjusting to inflation, which is typically used to revalue benefits.

In contrast, many low-income retirees continue to struggle with basic living costs. In France, 34% of retirees receive a direct pension of 1,000 euros gross or less per month. Similar financial pressures are noted in neighboring Spain, where retirees on approximately 1,000 euros per month report difficulty managing expenses such as food and energy.