While inflation has only been rising for a few months, the Purchasing Power Act has finally been passed. After many heated debates in the National Assembly and modifications by the Senate, the measures are finally in force. Even if many aid is granted, as with many upgrades, the tick is already ticked for retirees. In fact, a 4% revaluation for retirement in the base plan has already taken place. However, a reassessment is to take place, but not until next January. We explain everything to you here.
Bruno Le Maire said on RTL France that “inflation as it is today, that is, strong, will continue to increase until the end of 2022”. He also claims that the country is currently experiencing an “inflationary peak”. But the term peak also implies that it is short-lived. The Minister for Economy, Finance and Industrial Sovereignty therefore expects “reflux inflation down from the beginning of 2023“. He also claims that this is thanks to Europe’s action plan, which “has diversified its supply energy, natural gas found and oil elsewhere and reorganized the production chains”. Inflation hurts the country, but also pensions.
In fact, inflation has already happened over 6% for a year in July according to INSEE figures, causes great damage. The purchasing power of the French is lower and it is the same with pensions. Pensions are often the only income for seniors, which is why it is difficult to make ends meet at the end of the month. That is why its rearmament was one of the first measures taken from July. This was for everyone on a basic diet. She could see herself on the accounts this month.
Revaluation of pensions in January
Overall, pensions for this year have been upgraded by 5.1%. On the other hand, while this is a good start, it does not offset the 6.1% inflation already in place last July. In addition, if the pension revaluation rate is fixed, the inflation rate, on the other hand, is not. That’s what it means Inflation can and will certainly continue to riseenough to leave seniors income far behind.
A bitter observation for all retirees. Some activists just asked for another upgrade. In order not to leave the income too low, the application was apparently rejected. Although there will be another upgradeit will only be January. So we will have to wait a little longer to be able to ease the burden of inflation on a daily basis.
Normally pensions are reassessed at the beginning of each year to follow the course of life. And thus not to leave pensioners in precarity. It is also which the Social Security Code expressly provides. On the other hand, for the January 2023 calculation, the revaluation will take inflation into account between 2021 and 2022. But it was still weak. But for now, given this issue raised, Bruno Le Maire voluntarily remains very vague. Whether in terms of total or the way it will appear decided.
So right now we don’t really know what’s going to happen with the re-rating in January 2023. We know it will happen, but by what percentage is still a mystery.