The last pension reform has allowed self-employed professionals to access progressive retirement from January 1, 2024. This scheme allows individuals to reduce their working hours while receiving a portion of their pension. The conditions to benefit from this include being within two years of the legal retirement age, having at least 150 quarters of insurance, and maintaining 40% to 80% of their previous income. Another condition is that individuals must exclusively practice a liberal profession.
The reduction in income for progressive retirement is calculated annually on July 1st and is based on the ratio between the previous year’s income and the average of the five years before retirement. Self-employed individuals can only start progressive retirement on January 1st. During the first eighteen months, they will automatically receive 50% of their full pension amount as a provisional measure. If this 50% does not correspond to their level of reduced activity, they will have to repay any excess received, which will be deducted from future payments. Conversely, they may receive a supplemental pension.
It is important to note that most professional pension funds do not allow individuals to receive their supplementary pension during progressive retirement. It is advisable to contact the specific pension fund to verify this before starting the process. Expertise from France Retraite recommends this course of action to ensure a smooth transition into progressive retirement.
The expert advice provided by Aurelie Chalandon emphasizes the importance of understanding the specific conditions and calculations for progressive retirement as a self-employed professional. By adhering to the requirements set forth by the pension system and planning accordingly, individuals can navigate the process smoothly and ensure financial stability during the transition to retirement. This expert guidance provides valuable insights on how to manage income, verify eligibility for progressive retirement, and make informed decisions for a successful retirement plan.
In conclusion, the option of progressive retirement for self-employed professionals offers a flexible way to transition into retirement while maintaining a source of income. By meeting the necessary conditions and understanding the calculations involved, individuals can effectively plan for their financial future and ensure a smooth transition into retirement. Seeking expert advice and contacting the relevant pension fund for clarification on supplementary payments are essential steps to take before embarking on the progressive retirement journey. With the right approach and guidance, self-employed professionals can navigate this process successfully and achieve a balanced retirement plan.
