Retirement: These Highly Anticipated Changes in 2024

In 2024, the 5.3% increase in basic retirement pensions took center stage, but other changes were also implemented to benefit current and future retirees. 

In fact, in addition to this significant increase, three other measures have been implemented to boost retirees’ purchasing power. Here’s a closer look at the changes that have taken place this year.

A 5.4% increase in the PASS as of January 1, 2024

For those planning to retire this year, the increase in the annual Social Security ceiling (PASS) is something to keep in mind. Following an adjustment for inflation, the PASS has been raised. After two years without an adjustment in 2021 and 2022, a significant increase of 6.9% was recorded in 2023, bringing the PASS to 43,992 euros. In 2024, although the increase is slightly smaller, at 5.4%, it remains significant and exceeds the rate of inflation.

The new PASS for 2024 is now set at 46,368 euros. This change is particularly beneficial for private-sector workers who earned a comfortable salary during their 25 best-earning years. Without this increase, the basic pension would have been capped at 1,833 euros gross, compared with the current 1,932 euros.

Minimum Pension Increased for New Retirees

As of January 1, 2024, the minimum retirement pension amount, known as the “contributory minimum” (MiCo), has been increased from 709 euros to 733 euros. Subject to certain conditions, retirees are eligible for this minimum amount, provided they retire at the full rate with all their contribution quarters. Those who have contributed for 120 quarters can now receive 876 euros per month thanks to an increase in the MiCo. By comparison, in 2023, the contributory minimum with a full increase was 848 euros.

Abolition of the Agirc-Arrco penalty confirmed

For new retirees in the private sector, the Agirc-Arrco penalty, which was previously in effect, was abolished as of December 1, 2023. For those still subject to a temporary reduction in their retirement pension, this situation will end as of April 1, 2024. This elimination is part of the ongoing pension reform, as the system designed to encourage individuals to work a few additional years is now obsolete. The elimination of this reduction thus reflects the desire to support retirees without penalizing those who have already retired.