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pay attention to the pitfalls to avoid to take full advantage of it

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Choosing gradual retirement means having a more flexible end to your career. But there are some pitfalls…

To get a taste of what life will be like after a whole career of working, it is possible, for certain employees, to take advantage of the progressive retirement system. “Progressive retirement is a system which allows you, at the end of your career, to work part-time and to receive, at the same time, part of your pensions (basic and supplementary)”explains the website Public service. This allows people to continue contributing to retirement, while working less.

What are the conditions for being entitled to progressive retirement?

Progressive retirement is open to employees aged at least 60, who have contributed to at least 150 quarters of old age insurance. “You can request progressive retirement 2 years before the legal minimum retirement age”, specifies Public Service. For example, people born after January 1, 1968 will be able to retire gradually from the age of 62.

Another condition, it is also necessary “carry out a part-time salaried activity of between 40% and 80% of full time”. However, if you do not meet these criteria, your request may be refused. If you have any doubts, do not hesitate to seek advice from your pension fund.

Some pitfalls to avoid

Not anticipating the tax consequences of progressive retirement

Before making this choice, it is important to find out about the tax consequences that progressive retirement may have. “If you benefit from progressive retirement, your retirement pensions are subject to income tax under the same conditions as if you were fully retired. It is therefore essential to check that this new tax situation does not penalize you and to simulate your income tax before making your decision”explains the site Farewell. Furthermore, this also requires you to continue to pay social security contributions on your income.

Neglecting the calculation of retirement pension

Before taking your gradual retirement, think carefully about the pension you will receive during it. “The pension paid during the phased retirement period is a fraction of the total pension to which you would have been entitled if you had chosen to stop working completely. This fraction is determined based on the working time worked during the phased retirement period and the number of quarters contributed”, explains the site. On the other hand, it also specifies that the more the working time is reduced, the less the retirement pension is.

After this phased retirement period, “the retirement pension will be recalculated taking into account the additional quarters contributed during this period”. Depending on your situation, the extra quarters may not be enough to make up for the loss of income.

Do not complete your administrative procedures before the end of your progressive retirement

Theoretically, the end of progressive retirement is reached at the legal retirement age, but this period can be extended. In any case, you must make your request for definitive liquidation of your pension at least four months before, and carefully check the conditions of access to the pension. complementary pension.

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