France considers pension freezes for 2027 budget

The French government is considering measures to reduce Social Security expenditures as part of preparations for the 2027 budget. One primary strategy involves a partial freeze or sub-indexation of certain pensions. This could involve keeping pensions stable or increasing them at a rate lower than inflation for specific income brackets.

One proposed threshold for freezing basic pensions is 2,034 euros per month. Another option targets retirees earning between 1,260 and 2,034 euros per month. However, the exact impact remains uncertain because the government has not yet specified which income base will be used to determine eligibility—whether it refers to the basic pension alone, total retirement income, or a broader fiscal income.

Beyond pensions, the government is exploring a broader effort to achieve a 54 billion euro reduction in spending. This may include freezing the index point for civil servants and potentially limiting personal housing assistance, though officials have stated intentions to protect the RSA, disability allowances, and the minimum old-age pension.