How much do retirees who continue to work actually earn?

More and more retirees are choosing to continue working to supplement their income. According to a recent study by Agirc-Arrco, nearly 400,000 people enrolled in this private supplemental pension plan have returned to work while continuing to receive their pension. In 2022, that number reached 381,000, marking an 8% increase compared to 2021.
 

Phased retirement, which allows people to reduce their working hours while receiving a portion of their pension, is attracting more and more people. In 2022, 13,640 Agirc-Arrco members opted for this option, a slight increase compared to 2019. Phased retirement is particularly popular among women, who accounted for 70% of new beneficiaries in 2022. This trend can be partly explained by the fact that women are more likely to work part-time, which makes the transition to phased retirement easier.
 

Working while receiving a pension—which allows people to continue working while collecting their pension—is an increasingly popular option. In 2022, 381,000 Agirc-Arrco members chose this option, marking an 8% increase compared to 2021. The profiles of people opting for working while receiving a pension differ from those choosing phased retirement. The average age of retirement under the phased retirement plan is approximately 61, compared to 62 years and 2 months for working while receiving a pension. Women are slightly in the minority among those receiving a pension while working, accounting for 47% of the total.
 

The choice between phased retirement and working while receiving a pension has a significant impact on retirees’ income. For those on a phased retirement plan, salary accounts for an average of 80% of their income, with an average pension of €683 and an average gross salary of €2,763. In contrast, for those who choose to work while receiving a pension, salary accounts for only 34% of their income, with an average pension of €1,755 and an average gross salary of €923.
 

The types of work performed by retirees who continue to work vary depending on the program they choose. People who combine their retirement with employment often work for private employers in fields such as childcare, housekeeping, or light gardening. Phased retirement is more common in the health care and social services sectors.
 

The Borne reform expanded the phased retirement program to include civil servants and introduced new conditions for working while receiving a pension. Since last September, individuals receiving a pension while working have been able to accrue additional pension benefits under certain conditions. However, the future of these programs remains uncertain, particularly if the 2023 law is repealed.
 

Working in retirement is a growing trend, with a variety of programs that allow retirees to increase their income and better manage their transition to retirement. It remains to be seen how these programs will evolve in the coming years.