Starting at age 60, phased retirement becomes available again

As of September 1, 2025, phased retirement is once again available starting at age 60. This program allows employees to reduce their working hours while receiving a portion of their pension. This measure facilitates the transition from working life to full retirement, but its success will depend on the attitude of employers.
 

A More Flexible Tool to Extend Working Lives
The 2023 pension reform had planned to gradually raise the age of eligibility for phased retirement to 62 for those born after 1968. The government ultimately decided to revert to 60, in order to encourage the employment of older workers amid an aging population and labor market pressures.
 

The mechanism is simple: an employee can switch to part-time work—generally between 40% and 80% of full-time hours—while receiving a portion of their pension proportional to the percentage of work they have reduced. For example, an employee who reduces their work hours by half receives 50% of their pension in addition to their part-time salary. This arrangement allows employees to transition into retirement without a sudden drop in income.
 

Benefits, but Also Limitations
Phased retirement offers several advantages. It allows older workers to remain employed—and thus continue making contributions—while freeing up time to prepare for retirement. For employers, it can facilitate the transfer of skills and help integrate younger employees.
 

However, the program remains contingent on the employer’s approval, which limits its implementation in companies that are reluctant to adopt it. Certain sectors, particularly small and medium-sized enterprises (SMEs) and labor-intensive industries, are likely to implement it sparingly. The financial impact also warrants close attention: the combination of salary and pension provides financial security, but requires careful management of retirement benefits.
 

A Broader Societal Issue
The reinstatement of phased retirement at age 60 illustrates the government’s commitment to finding pragmatic solutions to keep older workers in the workforce. France’s labor force participation rate for people aged 60–64 is lower than that of many European countries: 38 percent, compared with 60 percent in Germany and 67 percent in Sweden.
 

By facilitating a smooth transition, the program could help raise this rate and reduce pressure on the pension system. However, its success will depend largely on companies’ willingness to adapt the way work is organized. Ultimately, its effectiveness will be judged by its ability to extend the average length of working life while improving the quality of life for older workers nearing the end of their careers.