Working after age 67: what does this mean for the employee's retirement?
Verified 14 September 2023 - Legal and Administrative Information Directorate (Prime Minister)
Working past age 67 can increase your pension.
Yes, if you continue to work beyond 67, you can benefit from an increase in your insurance term, i.e. your number of quarters, with Pension Insurance equal to 2.5% for each quarter over the age of 67.
This increase in the insurance period of 2.5% is granted on condition that you do not have, at age 67, a number of quarters, all plans combined, equal to the number of quarters required, all schemes combined, to be entitled to a full pension before age 67.
If you continue to work beyond 67, your insurance term can be increased to a maximum until you have the required number of quarters, regardless of plan, to qualify for a full rate pension before age 67.
The number of quarters required to qualify for a full-rate pension before age 67 varies depending on your year of birth:
If, at age 67, you do not have the number of quarters for your year of birthIf you continue to work, you may benefit from an increase in your insurance period with Pension Insurance equal to 2.5% for each completed quarter.
And it allows you to have a higher pension amount.
Indeed, the amount of your retirement from Pension Insurance depends on your total number pension insurance quarters, all regimes combined and, of that total number of quarters, number of quarters validated with Pension Insurance.
Pension of the Pension Insurance full rate shall be calculated as follows:
Average annual salary of your best 25 years x 50% x (Your number of quarters validated with Pension Insurance / Your total number of quarters all regimes combined)
The closer your number of quarters validated with Pension Insurance is to your total number of quarters, all plans combined, the higher your pension amount is and it is closer to half your average annual salary.
If you were born in 1964, you are entitled to a full-rate pension from 62 years and 6 months if you have 169 quarters in any plan or at 67 years regardless of the number of quarters.
If, at age 67, you have 169 quarters, all plans combined, you cannot benefit from an increase in the duration of insurance of 2.5% but you can keep working to get a overvaluation.
If, at age 67, you have only 152 quarters, all plans combined, including 120 with Pension Insurance and 32 with another pension fund, you can continue to work beyond age 67. This allows you to increase the number of quarters in Pension Insurance by 2.5% for each quarter worked beyond 67 years. This increase can be up to 169 quarters in total, regardless of plan.
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