Agirc-Arrco Retirement: No Pension Increase on January 1, 2026 – Here’s Why

On January 1, 2026, retirees in the private sector will face significant financial challenges as the Agirc-Arrco pensions will not see an increase. This decision stems from a disagreement among social partners and directly affects the purchasing power of these retirees. It’s crucial to understand these changes to adequately prepare for 2026.

Impact of No Pension Increase on Agirc-Arrco Retirees

The lack of revaluation for pensions is projected to lead to a decrease in purchasing power. Retirees receiving an average pension of €1,400 may experience a loss of approximately €11 per month. While the general pension scheme may experience slight increases, the absence of an Agirc-Arrco raise highlights the ongoing challenges for social partners to agree on adjustments.

Maintained Tax Deductions

Despite the freeze on pensions, the 10% tax deduction on retirement benefits will remain in effect. This measure aids in preserving the purchasing power of retirees and helps avoid increased income tax for many low-income households. Without this deduction, some retirees could move into a higher tax bracket, facing greater monthly financial strains.

Budget Planning for 2026

Retirees will need to reassess their budgets for 2026. While the payment dates are already established, it’s critical to account for rising costs, particularly in areas like food, housing, and healthcare. Effective budget management will become essential to sustain purchasing power amidst stagnant income levels.

Other Financial Changes in 2026

• Minimum Wage Revaluation: The minimum wage (SMIC) will see an increase of 1.4%, resulting in a new gross hourly wage of €12.056, or €1,827 monthly.
• Retirement Savings Plan (PER) Changes: The ceilings for voluntary contributions to retirement savings plans will rise, allowing non-employees to deduct up to €88,911, while salaried employees can benefit from a ceiling of €37,680.
• New Parental Leave: A new parental leave policy will introduce one to two additional months of leave paid at 70% and then 60% of the salary, promoting financial support for families.

These adjustments in wage and retirement policies will impact not only workers but also retirees who depend on supplementary income sources. Understanding these changes is vital to navigate the upcoming financial landscape effectively.

Retirees and families should prepare to address these financial modifications to maintain stability in their budgets and protect their purchasing power during this challenging period.