The fear of retirees in the face of the erosion of their purchasing powert which continues to grow over the years is not a theme to put on the margins. Indeed, indignant, this category of the population agrees to affirm that a significant drop in the purchasing power of pensions and pensions threatens the achievement of the threshold of precariousness in the near future.

What the statistics say about the purchasing power of retirees

Back to the history of this problem. According to a study carried out on the evolution of poverty (Insee Première study n°942, December 2003), it is affirmed that if precariousness decreased moderately in France between 1996 and 2000, the increase in the poor population is largely made up of retirees. Indeed, here are some explanatory figures:

  • 430000 retirees had a monthly income below the precariousness threshold relating to the half-median standard of living in 1996
  • This figure rose to 471 in 000.

It should be noted that this increase is not solely due to the overall increase in the number of retirees estimated at about 4% within the entire population with a parallel increase of 10% in the poor population.

It is also the consequence of the rise in the precariousness threshold above the minimum old age for a single person. As a result, pensioners receiving the minimum old age are included in the poverty statistics. Many retirees with incomes which evolve slowly, because they are indexed to prices, were taken over by the threshold at 50% of the median standard of living between 1996 and 2000.

The purchasing power of retirees: what is it today?

In July 2021, the Confederal Union of CGT Retirees published an announcement which explained that a 4% increase was planned for pensions from the general scheme, on the other hand, no reform to be planned for beneficiaries of supplementary pensions.

It should be noted, however, that inflation experienced unprecedented figures during this year 2022. It has almost doubled and is likely to increase further, rising from 5.8% at the start of the year to almost 8% towards the last quarter of 2022 ( forecast of economists). All consumer products are affected, including meats and vegetables. The average citizen has no choice but to comply with this increase and pay more. Despite the government's efforts to improve the purchasing power of our retirees, the current situation remains unfavorable for most. Inflation far exceeds the pension allocated to counter it, thus creating an incipient imbalance between needs and means. The revaluation covers only half of the allocation affected, which comes support the thesis evoking the persistence of the collapse of purchasing power for retirees.

What about supplementary pensions?

Agirc-Arrco complementary products will be reassessed in November, however only 2,9% say the managers of joint bodies. However, it concerns 11,8 million pensioners from the CNAV and concerns on average nearly 50% of the total amount of monthly pensions. AGIRC-ARRCO currently has 68 billion euros in reserves, which is equivalent to 9 months of pensions, but these reserves must provide 6 months of pensions, according to the organization's management system. Mentioned by Le Figaro on June 26, Didier Weckner, member of the board of directors of AGIRC-ARRCO on behalf of MEDEF, mentioned that “paritarism is not subject to permanent political pressure. We will see in October what is the level of inflation and the evolution of wages”, the rate of increase of the complementary will be decided at the end of the year.

À the erosion of the purchasing power of pensions is added to those of precautionary savings. Regarding the remuneration of the Livret A, Bruno Le Maire said that it will reach 2% in August. The government had reduced this remuneration to 0,5% in April 2018 and the increase to 1% only dates from last February. According to the proposal of the Minister of Finance, the remuneration of this savings will only cover a quarter of the price increase, if it reaches only 8% over the whole of 2022.