France implements retirement and pension calculation reforms

France is implementing significant changes to its retirement system through two distinct regulatory shifts.

First, a reform included in the 2026 Social Security financing law will modify the rules for combining professional income with pensions (cumul emploi-retraite). Set to take effect on January 1, 2027, this measure aims to limit certain advantages and encourage employees to delay retirement. The new rules will apply to individuals whose first basic pension begins on or after January 1, 2027, meaning those retiring in late 2026 will remain under the previous system.

Second, starting September 1, 2026, new rules will adjust how basic pensions are calculated for parents to better account for the impact of children on professional careers. For private-sector employees, the calculation of the average annual income—previously based on the 25 best years—may be reduced. Parents with one child may have their pension calculated based on their 24 best years, while those with two or more children may see it calculated on their 23 best years. This change is intended to exclude lower-income years from the average, potentially increasing pension amounts. Additionally, female civil servants and state workers who gave birth after January 1, 2004, will receive an extra quarter of insurance credit.