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PENSION

EXPLAINED: The website to help you calculate your French pension

Looking to get an idea of what your French pension could look like if you have worked in France as a foreigner? Here is how you can simulate it with this French government website.

Published: 20 January 2023 17:21 CET
Updated: 26 January 2023 11:34 CET

EXPLAINED: The website to help you calculate your French pension

Screenshot of the homepage for French website Info-Retraites.fr (Credit: The Local)

As French workers debate over pension rights, many foreigners living in France have been wondering how they fit into the equation.

If you have worked in France under a French contract for at least one trimestre (quarter), then you have begun paying into the state pension system, because it is compulsory to do so.

Reader Question: How long do I have to work in France to qualify for a state pension?

However, you must keep in mind that the French pension system is ‘pay-as-you-go’ – meaning, you might only qualify for a very small French pension if you worked for only a few years in France.

If you worked in both France and another country, and you are curious about how your pension will be calculated to reflect your working time in both countries, you can learn more HERE. Keep in mind that the situation is different for people who have ‘posted worker’ status.

The remainder of this article concerns solely French state pensions.

While there are complex calculations you could attempt to estimate it, we have some very good news that will save you some time (and a headache) – France has a simple and user-friendly website at which everyone can calculate their pension entitlements.

Head to the website info-retraite.fr and log in using your social security number (or France Connect).

If you have worked and paid contributions for more than one trimestre in France, you will find an account set up ready for you which shows your years of contributions in France, and what pension you can expect.

The advantage of the French system is that your pension contributions are deducted automatically, even when you change jobs, and the government keeps track of it all via your social security number.

Here is how to use the website;

You will start with a homepage resembling the screenshot below:

A screenshot of the homepage for Info-Retraites.fr (Credit: The Local)

Head to the top right corner and click on the link below “Mon compte retraite” which says “J’accède à mon compte retraite.”

Once you have clicked on this, you will be led to a log-in screen (shown below). You will have the option to log in with France Connect.

If you do not use France Connect, you can create an account by clicking “Créer mon compte retraite” in the lower right hand corner. You will need access to your French social security number to fill out the relevant information.

Once you have logged onto the website, you will find a screen welcoming you to your account.

This homepage has different sections such as your profile on the website, a visualisation of your working life and pension contributions in France (Ma carrière) and your pension simulator (found under “Mon estimation retraite“).

Screenshot of Info-Retraites.fr

To calculate what your current French pension looks like, and to simulate what it could be, you should click on “Mon estimation retraite.” You should be taken to a page that resembles the one shown in the screenshot below.

Screenshot of Info-Retraites.fr (Credit: The Local)

Accéder directement à mon estimation offers a predictive pension rate based on your current situation.

To simulate what your pension could be in the future, by adding in elements reflecting your individual situation – such as children, disabilities, and periods of unemployment, click “Simuler ma retraite.”

The website shows what you can expect if you retire at the legal minimum age (note: this screenshot was taken when the minimum age was set to 62, but starting September 2023, the minimum age will progressively rise to 64 due to pension reform) and what you can expect if you stay until the ‘upper age’ of 67.

It will also show you how many trimestres you have, and how many you need for a full pension.

To simulate what your pension could become, you will have to fill out some further information. The first is your family situation – as shown in the image below, you will need to indicate if you have any children and if so how many.

Screenshot of Info-Retraites.fr (Credit: The Local)

Next, you will describe your professional situation – whether you are employed (Salarié), working as a freelancer or contractor or running your own business (Non salarié ou indépendent), a public sector worker (Fonctionnaire), or currently receiving benefits. Ignore the expatrié section – that’s for French people working abroad.

This segment will also ask you further details about your situation, like if you work full or part-time, what your average salary is, and more.

Once you have filled out the relevant information, you will be taken to a new page that offers a simulation of what you could earn as a French pension based on the information you uploaded.

Screenshot of Info-Retraites.fr (Credit: The Local)

The above screenshot provides an example of a simulated French pension for a person who has one child, and has worked all of their career, full-time, in the French private sector with an average annual (gross) income of €36,000.

Keep in mind that there are many different factors that are involved in estimating a French pension, so the simulation you receive may not perfectly predict what you will be owed upon retirement.

So what about people have have contributed to a pension in both France and another country?

When it comes to non-French pensions, periods of employment outside France may be combined with years worked in France to boost or qualify for the French state pension. However, it depends on which country you have worked in, and whether that country has a social security agreement with France.

You can learn more about this HERE.

This article is a general view of the pension system and does not constitute individual financial advice. If you are are unsure about your pension rights, seek independent financial advice.

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Are Australian pensions taxed in France?

The situation for Australians can be particularly confusing, largely due to the fact that Australia and France do not have a bilateral social security agreement (though there is an income tax treaty).

Before going any further, it is worth noting that this article is meant to give an overview of the pensions situation for those with Australian pensions in France. It does not replace professional financial advice, and Australians looking to retire in France should seek out expert financial assistance before making any decisions about their pension.

The first step is to determine whether or not you are a tax resident in France (you can look through our guide). All tax residents must fill out a yearly tax declaration, and they must report all global income, even if it is not subject to tax in France.

Where is my pension taxed?

As for pensions, let’s start off with the basics – if you receive a civil service pension from the government of Australia – meaning you were a federal or state public worker, then that pension is only taxed in Australia and it will not be taxable in France, though you will have to declare it along with all global income, although this could count towards your household income which can push you into a higher tax bracket.

As for all other pensions – these are considered taxable in France.

If you have a pension from another country besides Australia, different rules may apply based on that country’s bilateral tax treaty with France. Here is the situation for British, American, and Canadian pensions, and here is an overview of the system.

Age pension

There is a big catch for Australians – the lack of a social security agreement means that Australians living in France may not be able to claim their Age Pension (assuming they qualify based on income constraints).

While you can be an Australian living in Austria, Belgium, Chile, Croatia, the Czech Republic, Spain or Estonia, among others, and still claim your Age Pension, this is not the case in France.

What’s crucial here is when you move – if you start receiving your old-age pension and then you move to France, then you may be able to continue claiming the pension. If, however, you move to France before you reach pension age, then you will not be able to claim it unless you move back.

A spokesperson for the Australian government told The Local in a previous interview: “To be eligible for Age Pension, a person must generally be an Australian resident and be in Australia at the time the claim is lodged, or in a country with which there is an International Social Security Agreement in place.”

There is no such agreement with France. And, despite the efforts of some of the thousands of Australians living in France to get politicians in both countries to act, there appears to be little urgency to change the situation, which means it could be some time yet before we are able to give you any good news on the pension front.

There are groups pushing for a social security agreement, such as the Facebook group ‘Australian Pensions in France’, which can also be a helpful place to connect with other Australians navigating tax complexities between the two countries.

What about superannuation plans?

The next complex area is the ‘superannuation’. While withdrawals from a ‘super’ can be accessed after becoming a resident in France, there are tax implications to be aware of.

The Local spoke with Martine Joly, chartered accountant and tax agent from Bilateral Solutions, who has experience working in both the Australian and French tax systems.

Joly explained that the challenge is that “the two systems are totally opposite. In Australia, pensions are done by capitalisation, with your employer paying into the superannuation.”

In Australia, the contributions were taxed when being deposited, so they are meant to be tax-free upon distribution.

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However, France does not recognise this, so ‘super’ withdrawals are subject to tax here, even though in theory they have already been taxed in Australia.

To make matters more complicated, there are several different ways superannuation plans can be organised, but for the most part French fiscal authorities treat them as trusts.

This means that you may have additional reporting requirements each year, in addition to your annual French tax declaration, such as the “FORMULAIRE N°2181-TRUST2” which asks for the market value, as well as any accrued income, of the trust as of January 1st of that year.

If you are required to do this, then you will also have to name other people listed in the trust – whether they are ‘moral’ or ‘physical’ people. You will be required to give extensive information, including their dates of birth and addresses.

On top of that, you would also have to fill out an additional “event” declaration if a trust is created, modified or terminated. This must be done within one month of the event. This tax form is also available on the government tax site: FORMULAIRE N°2181-TRUST1.

How much can I expect to pay?

You will begin to be taxed when you start withdrawing from your super, and the way you are taxed will depend on whether you take payments in the form of an ‘income stream’ (periodic payments) or as a lump sum.

If you take your super as an income stream, even though it is meant to be tax-free in Australia, you will still owe tax in France once it begins to be distributed. You would be charged at the progressive marginal (barème) rate for income tax, going all the way up to 45 percent (for the highest earners only).

If you try to avoid paying, be aware that “Australia will inform France”, as Joly explained.

“They communicate well and it will not be lost. So the French will realise if you have not paid any tax, because it is fully taxable in France. You have to declare this pension income,” she said.

As for lump sum payments, whether or not you will owe tax in France depends on when you placed the super into your bank account.

“If you convert the super into a bank account prior to leaving Australia and becoming a tax resident in France, then this is not an income, it is a saving,” Joly said.

As such, you would not owe income tax on it, but you would still need to declare the foreign bank account to French tax authorities.

If you take your lump sum super after moving to France and becoming a tax resident, then you would owe tax here upon distribution.

Beware that lump sums are complex and you should get financial advice before making this decision. Technically, French tax authorities may allow a return of once off pension capital to be taxed at a flat rate of 7.5 percent.

But in reality, anyone seeking to do this would need the express, written confirmation from French tax authorities that this rate will be applied. Similarly, you should be aware that this likely will not be possible if you have already begun drawing from your ‘super’, as the flat rate is often only available if the full amount is taken at once. Again, individual professional advice is highly recommended.

You can also find more information at the French tax website Impots.Gouv.Fr.

Joly pointed out a few other things Australians in France should be aware of – including the possibility you may owe the IFI (Impôt sur la fortune, or wealth tax) which considers whether you have property valued at €1.3 million or above.

“Due to high real estate prices in Australia, people just owning a small apartment in Sydney may not realise they would owe tax on this in France later on,” she said.

You should also keep in mind that Australia’s tax year runs on a different calendar year. France considers the period from January 1st to December 31st, while Australia looks at July 1st to June 30th.

This may make a difference when considering your tax residency.

What about social charges?

Deductions in France come in two types – impôts (taxes) and prélèvements sociaux (social charges).

Australians have reported receiving social charges, in addition to taxes, for their superannuation income. That being said, there are several exemptions to social charges.

For example, if you are not working and your spouse is a recipient of an EU/EEA/UK pension (with an S1 form), then both of you would be exempt from paying the CSM health charge.

As the situation for Australians can be more complicated than nationals of other countries, it is highly recommended to seek expert assistance, particularly from someone who has qualifications in both countries and understands the tax treaty.

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