2024-10-30 10:30:00
How much does the average salary allow you to receive in retirement?
This is the great concern when leaving the world of work approaches: what retirement pension will be paid once we move on to the “next world”, that of pensioners? For many French people, this is the main issue in being able to anticipate their budget and calculate their expenses accordingly. However, it is not easy to estimate the amount of your future pension. Between the career to rebuild, the organizations to turn to and the papers to provide, it’s a real obstacle course.
However, things tend to get simpler. The pension info site allows you, in your personal space, to have an initial general overview of the amount to which the person is entitled. But this is only indicative and does not take into account all the specific elements of each person. While the average salary in the private sector is 1,850 euros per month, how much would pension funds pay a former employee who received this salary?
For a non-executive born in 1963 and who began working in the private sector at the age of 20, he or she will be able to retire at full rate in November 2025, after having completed the necessary 170 quarters. If today you receive 1,850 euros net before taxes every month, your budget will decrease by 473 euros, according to the simulation created using the site la-retraite-en-clair.fr.
This will only amount to 1,357 euros per month, before taxes. In detail, 1,015 euros will be paid by the National Old Age Insurance Fund (CNAV) and 342 euros by Agirc-Arrco. This amount will increase until it reaches 1,602 euros upon reaching the age of 67.
Under equal career conditions, a public employee, whoever he or she may be, will receive a higher old-age pension. This corresponds to 75% of the gross salary received in the last six months of his career. So, for 1850 euros of salary, the gross amount is 2373 euros. The old-age pension will therefore amount to approximately 1780 euros before taxes.
This amount can be increased thanks to the Additional Civil Service Scheme (RAFP). Keep in mind that this calculates the supplement only based on bonuses and other exceptional compensation (but not all!) received during your career. Given the very individualized nature of the calculation, it is not possible to estimate this additional income.
These figures here are just guesses based on a linear career, without a broken career path. For example, they do not take into account the arrival of one or more children in the family unit. The objective is only to provide an order of magnitude of the remuneration that could be received. Only refined work using your earnings will allow you to have precise elements. This simulation can easily be carried out online on the Service-public.fr website.
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Or provided by pension information sources. This implies that the pension amount you can expect to receive after retirement may be around 1,377 euros per month.
The consideration of future retirement income involves several factors, including the number of years worked, the salary history, and the specific pension plans one may have contributed to throughout their career. The process can appear daunting, but it is essential to understand that planning for retirement requires careful thought about how much to save and what kind of lifestyle you envision during your retirement years.
The pension system in France is designed to ensure a basic level of income for retirees, but many individuals find that relying solely on this can lead to financial strain. It is advisable for individuals to consider additional savings options, such as private retirement plans or investment accounts, to supplement their pension income.
while the average salary of 1,850 euros provides a starting point for estimating pension benefits, personal circumstances will significantly influence the final retirement income. It is wise to seek reliable financial advice and use available resources to create a comprehensive retirement plan.
The article discusses the complexities of estimating retirement pensions based on average salaries in France. It addresses the concerns many individuals have when approaching retirement regarding the amount of pension they will receive.
Key Points:
- Average Salary and Retirement Concerns: The average salary in the private sector is about €1,850 per month. Individuals are often anxious about the amount of pension they will receive after retiring.
- Pension Simulation: For a non-executive worker born in 1963, retiring at full rate after 170 quarters, the estimated pension payment would be significantly lower than their last salary. A monthly pension of approximately €1,357 (before taxes) is anticipated, which includes payments from the National Old Age Insurance Fund (CNAV) and Agirc-Arrco.
- Public vs. Private Sector: Public employees generally receive a higher pension, amounting to about 75% of their last gross salary. For someone earning €1,850, the pension could be around €1,780 before taxes.
- Additional Income Sources: Public sector pensions might be enhanced through additional schemes, although this can vary based on bonuses and exceptional compensation throughout the employee’s career.
- Individual Variability: The article emphasizes that these estimates are based on linear career paths and do not account for life changes such as family additions, indicating that actual pension amounts may vary.
- Estimation Tools: To get a more accurate view of potential retirement income, individuals are encouraged to utilize online simulation tools provided by platforms like la-retraite-en-clair.fr and Service-public.fr.
while the article provides a framework for understanding potential pensions, it strongly suggests that personalized calculations are necessary for accurate financial planning for retirement.