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because of the CSG, people affected by the threshold effect



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because of the CSG, people affected by the threshold effect

M. Justet, N. Bidard, O. Poncelet, A. Guin, P. Montels, A. Fischer, M. Barrois, L. Michel – franceinfo

France Televisions

Purchasing power is a crucial subject, particularly for retirees. But while a revaluation of pensions has taken place, others have noted a drop in the amount received, which may be linked to the CSG.

Pascal Deverney is a retired postman, who lives in Seine-Maritime, in Anceaumeville. Thursday, April 7, observing his pension statement, he found a bad surprise. No increase, this year the 69-year-old’s pension has gone down. He will receive 43 euros less each month. “It falls very very badly, especially since currently there is inflation, increases on gas, on electricity, on first consumption”he worries.

His pension has however been revalued, but with 11,512 euros in annual income, he has exceeded the threshold of 11,431 euros per year, which triggers taxation at the CSG. In 2021, Pascal Devernay received 1,341 euros per month, without the CSG. Since January, his pension has been 1,356 euros per month, but with the 3.8% of CSG, it drops to 1,298 euros. Depending on the amount of the pension, there are four CSG rates. In 2022, about a million retirees have moved to the higher tax rate, seeing their pensions drop. These reductions concern only a minority of retirees. In total, nine out of ten did not change their CSG rate and therefore benefited from the revaluation.

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