CORRECTION. The standard of living of retirees is lower than that of workers, not the other way around

If we take into account assets, the average standard of living of retirees was higher than that of workers in 2019, according to a study by the economic consulting firm Asterès. The trend has reversed, according to 2021 figures.

Corrigendum. In a first version of this article, published Monday October 7, 2024 on the basis of a study by the Asterès firm, we wrote that “the standard of living of retirees is higher than that of workers”. However, these conclusions are contradicted by more recent figures. In its study, Asterès used figures from 2019 and not 2021 for disposable income, standard of living and standard of living with imputed rents. Based on 2019 figures, the standard of living with imputed rents of retirees was much higher than that of assets (107.8% against 106%). The 2021 figures show a slight reversal: the standard of living with imputed rents of retirees has once again become slightly lower than that of workers (105% compared to 107.6%). The article has been corrected and republished. We apologize to our readers and listeners.

The standard of living of retirees is slightly lower than that of the rest of the French population, if we take into account assets, according to a study by the economic consultancy firm Asterès, unveiled Monday October 7 by franceinfo, while the government plans to postpone the indexation of pensions to inflation by six months.

This study carried out by the firm led by Nicolas Bouzou, which defines itself as “progressive liberal“, compiled figures from the Retirement Orientation Council (COR) and INSEE: “In terms of assets or the probability of being below the poverty line, the situation of those over 65 is more favorable than that of the rest of the population.”

According to the study, based on 2019 data, the disposable income and standard of living of retirees are “inferior” to those of active workers with 2,188 euros per month on average compared to 2,489 euros for employed workers. However, taking into account the “imputed rent”that is to say the rents that owners pay to themselves in national accounts, “the adjusted standard of living of retirees becomes higher than that of workers”.

The 2021 figures show a slight reversal: the standard of living with imputed rents of retirees has once again become slightly lower than that of workers (105% compared to 107.6%).

“Retirees have more assets than the rest of the population. On average, households where the reference person is over 60 years old have assets greater than 300,000 euros, while on average it is less than 300,000 euros for younger households. In fact, 62% of retirees are owners, having already repaid their loan, while only 17% of those under 50 are in this situation.

Furthermore, households over 64 are less affected by poverty than younger households, continues the Asterès firm. “Indeed, the poverty rate for 65-74 year olds is 10.7%, and 11.4% for those over 75. These are the lowest rates, whatever the age brackets. age considered, those under 18 being the most affected by poverty (20.4%).

The government plans to postpone the indexation of pensions to inflation by six months, from January 1 to July 1, 2025, which would save 4 billion euros out of the 60 billion savings envisaged in the budget.