France's pension formula and frozen complementary boost widen retiree income gap

The French retirement system calculates the basic pension by multiplying the average annual earnings of the 25 best years by a rate (50 %) and by the ratio of insured quarters to a reference duration. This formula means that two retirees with identical salaries can receive pensions that differ by several hundred euros, with women averaging €1,310 and men €2,090 per month in 2023. The pension can be reduced by 1.25 % for each missing quarter (decote) or increased by the same amount for each extra quarter (surcote). Full‑rate entitlement requires up to 172 quarters (43 years) of contributions, though the rate becomes automatic at age 67.

For 2026, the basic state pension was revalued by only 0.9 %, adding roughly €9 to a €1,000 pension. In contrast, the Agirc‑Arrco complementary scheme kept the value of its point fixed at €1.4386 for both 2025 and 2026, marking the first freeze since the 2019 merger. About 14 million private‑sector retirees are affected, while the scheme’s reserves stand at €92.3 billion. Negotiations to adjust the point value are slated for autumn 2026, with unions such as the CFE‑CGC demanding a catch‑up increase.