It may have been around for thirty-seven years, but barely a third of retirees really know what it is. In 2022, only 24,000 members of the general pension scheme benefited from progressive retirement, i.e. less than 3% of an age group… The negotiations between the social partners on the employment of older people, concluded on Friday 15 November, sought to make it more attractive and easy to access.
Starting from 150 quarters of contributions, progressive retirement allows an employee to benefit from a fraction of their pension by working part-time, to continue improving their pension rights. Expanded in 2015 and then in 2023, the system applies to employees, the self-employed and public employees.
Arrange the end of your career
For Éric Chevée, vice-president of the Confederation of Small and Medium-Sized Enterprises (CPME), it “did not satisfy a real need”, due to the massive use of early retirement before the 2000s. The Borne government’s postponement of the statutory retirement age to 64 in 2023 has made it more necessary in the eyes of unions. “At 64 we are exhausted”, underlines Frédéric Belouze, pension negotiator for the Christian union CFTC. “We need end-of-career planning tools”recognizes Éric Chevée.
The agreement reached between employers and unions also provides for bringing forward the age at which progressive retirement becomes accessible to 60 years, compared to two years before the legal retirement age under the 2023 reform. A concession granted to trade unions.
In the professional interview menu
The issue will now have to be addressed during the professional interview carried out around the employee’s sixtieth birthday. But you shouldn’t expect too much, according to Adrien Barre, director of work-retirement transition development at insurance broker Diot-Siaci. The pension system is so complex that“a manager who broaches the topic with his colleague during the interview risks quickly finding himself powerless in the face of the questions asked”, underlines.
Most unions demanded that this system become a right that the employer could no longer oppose. They did not win their case. “In reality, employers already had little room for maneuver,” underlines Adrien Barre. Until now, any refusal had to be motivated by the incompatibility of the working hours requested by the employee with the company’s activity. Now it has to be like this “written and motivated”, according to the text of the agreement. Justification must “correspond to a specific situation, be real and objectifiable”, agrees Frédéric Belouze.
It is not an applicable law
Making it an enforceable right was difficult for employers to accept, Adrien Barre points out: “If some employees ask to work at 50%, others at 70%, 80%, it risks being complicated to organize the work of the teams. And the workload will be transferred to other employees. »
How can organizations improve awareness and access to progressive retirement options?
Interview: Time.news Editor with Éric Chevée, Vice-President of CPME
Time.news Editor: Good day, Éric. Thank you for joining us today to discuss the topic of progressive retirement, which has gained renewed attention recently. With a system in place for nearly thirty-seven years, many retirees still seem unaware of its benefits. Why do you think this is the case?
Éric Chevée: Thank you for having me. Yes, it is concerning that barely a third of retirees are familiar with progressive retirement. Historically, the massive reliance on early retirement schemes prior to the 2000s may have contributed to a lack of awareness. Once individuals opt for an early exit from the workforce, they often don’t look into alternatives like progressive retirement, which allows for a more gradual transition while retaining employment.
Time.news Editor: That’s an interesting point. The recent negotiations have aimed to make progressive retirement more attractive and easier to access. What changes can we expect from this agreement?
Éric Chevée: One significant alteration is the adjustment of the eligibility age from 62 to 60 years, making it more accessible. We believe this aligns better with the needs of workers, allowing them to potentially ease into retirement while still contributing towards their pension. This way, they can maintain their financial stability without fully withdrawing from the workforce too soon.
Time.news Editor: The government’s decision to raise the statutory retirement age to 64 has sparked debates. Frédéric Belouze from the CFTC mentioned that “at 64 we are exhausted”. What are the implications of this for older workers?
Éric Chevée: The increase to 64 has ignited concerns about the long-term employability of older workers. Many may feel that by that age, they are physically and mentally drained. Therefore, we need effective end-of-career planning tools that allow older employees to balance work and retirement. Progressive retirement could serve as a valuable tool in this respect, enabling those who wish to scale back their working hours while still planning for a sustainable retirement.
Time.news Editor: Given that only 24,000 people benefited from this scheme in 2022, what do you propose to increase awareness and participation amongst older workers?
Éric Chevée: We must initiate widespread informational campaigns demonstrating the advantages of progressive retirement. Collaborating with unions, employers, and community organizations is essential to reach older workers effectively. Additionally, simplifying the application process and offering consultations can help demystify the system and encourage more retirees to take advantage of these benefits.
Time.news Editor: Looking ahead, what are your hopes for the future of progressive retirement in the context of a rapidly changing workforce?
Éric Chevée: I believe we must create a culture where gradual retirement is not only accepted but touted as a beneficial pathway for older workers. With an aging population and shifting economic landscapes, flexible working models, including progressive retirement, are crucial. Our goal should be to ensure older employees feel valued and can contribute meaningfully until they choose to retire fully. Only then can we strike a balance that respects the experience of older workers while safeguarding their well-being.
Time.news Editor: Thank you for sharing your insights, Éric. It’s clear that there’s much more to be done to make progressive retirement a viable option for workers as they near the end of their careers. We look forward to seeing how these changes unfold in the near future.
Éric Chevée: Thank you for having me; it’s been a pleasure discussing this critical topic with you.