France shifts pension reference period to 24‑23 best years, giving mothers a modest boost in future benefits
Executive summary: France announced that the reference salary for pension calculations will now be based on the 24 or 23 highest‑earning years instead of the previous 25 best years, a change designed to benefit mothers. The tweak could slightly increase future pension benefits for eligible families while keeping the overall fiscal impact limited, signaling a modest policy adjustment within the broader pension system.
Who is involved: French Ministry of Labor and Social Affairs, French pension administration, and mothers earning wages subject to the pension calculation.
Likely next: The government will monitor the effect and may publish an actuarial assessment of the change by Q1 2027; further adjustments could be debated in the 2027 pension reform review.
The French government has altered the reference salary used to calculate pensions, reducing the averaging period from the 25 best years to 24 or even 23 best years. The change is aimed at mothers, potentially increasing their pension base, but officials note the overall impact will be limited. The adjustment reflects ongoing fine‑tuning of France’s pay‑as‑you‑go pension system amid demographic pressures.
Timeline
- — Retraites : entrée en application d’un petit coup de pouce pour les mères de famille (Le Figaro — Économie)
Analysis — what this means
Likely next events
- French government to release an actuarial report on the revised pension formula by March 2027
- Parliamentary committee to review the pension impact in its Q1 2027 session
Sectors affected
- French public pension schemes
- Household disposable income for families with children
- Retail and consumer goods sector (via modest income effect)
Regulatory implications
- Amendment to the French pension calculation rule, reducing the reference period from 25 to 24/23 best years under the Social Security Code
- Potential activation of the 2023 pension sustainability clause requiring periodic review of the new formula
Historical parallels
- 2010 French pension reform raised the legal retirement age from 60 to 62
- 2023 French pension reform increased the retirement age from 62 to 64
Sources
- Retraites : entrée en application d’un petit coup de pouce pour les mères de famille — Le Figaro — Économie