Retirement Solutions When You Are in France

After you have been in your job for several decades, you are probably approaching your retirement time.

Retirement is a good time of your life when you have the opportunity to relax and enjoy the hard-earned money over the years. However, similar to the other years that you have already lived, the benefits you enjoy during retirement are determined by the choices you make before you retire. When living in France, you are probably looking forward to this time when you can enjoy the warm climate, good food, and other recreational activities in France without worrying about your jobs. Nevertheless, for you to enjoy this, you need to make sure that you are ready and transacting your retirement in the right way. Here is comprehensive information about retirement in France.

Who Is Ready to Retire in France?

Similar to other states and countries, retirement in France is for elderly citizens who need to relax and enjoy what they have earned. The ideal retirement age in France is currently at 67 years. For this reason, as you approach that age, you can start getting ready for the new life ahead of you. However, before you qualify for retirement, you need to prove that you are financially stable and have a stable means of financial support. This is made possible through plans such as like the PER, among others used in France. On the other hand, you need to have a healthcare plan that will help cater to your healthcare costs.

Pensions and Retirement Plans in France

Ideally, in France, there are three different retirement plans that you use. However, only two of the three are compulsory. The first retirement and pension plan is the social security plan, which is the code that defines what is expected in the retirement plan. On the other hand, there is an occupational pension plan. This one is administered by the complementary pension organization and varies according to the occupation. In the third pension plan, this is an optional level that consists of occupational pension schemes. The statutory funding of this plan is acquired from the general tax code, social security code, and the labor code. With the third retirement plan, you have a lot to consume after you have retired.

Calculating Your Pension Rates

Your pension rates for the amount that you have earned are determined by the total years that you have worked. In this case, the years that you work are divided into quarters, whereby each quarter earns some points that accumulate in the overall pension that you get after you retire. Other factors that determine the French pension rate are such as:

  • Your annual earnings or basic salary- this is determined by the total amount that you contributed to the social security contribution.
  • Overall insurance period- this shows the years that make you qualify for the pension that you are about to receive. Additionally, it includes the periods that you have paid in the social security scheme, among other schemes that you have paid with, such as parental leaves, among others.

In the case of female workers who have taken maternity leaves, they acquire pension benefits, which includes eight quarters for each child and the other four for raising the child. These pension schemes remain even when the leave is in the case of adopted children.

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