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with the increase in their pensions, pensioners earn less


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with the increase in their pensions, pensioners earn less

J.Duponchel, A.Guin, N.Bidard, P.Montels, A.Fischer, O.Sauvayre – France 2

France Televisions

The increase in retirement pensions has made some seniors pay a higher CSG tax rate. In fact, they are losing money.

Some retirees have seen their pensions increase, without having anything more in their wallets. This is explained by the payment of the CSG (generalized social contribution). “I have a net loss of approximately 40 euros per month, or 500 euros per year”, calculates Pascal Devernay, retired. In 2021, the retiree did not declare enough income to pay this CSG. But, in 2022, his pension was revalued by 1%, just enough for him to be taxable at the CSG. “It’s very, very bad timing, especially since there is currently inflation”regrets Pascal Devernay.

Unlike employees, the CSG is scalable for retirees, depending on declared income. Its rate can thus vary between 0% and 8.3%. According to the old-age insurance, one in ten pensioners saw their rate increase this year. Few presidential candidates have said they want to change this tax.

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