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How to improve your income when you are retired?

Once you retire, your income can be 30 to 50% lower than what you received during your working life. In addition, from year to year, with the deterioration of pension systems, the amounts of pensions are falling.

To improve your retirement income , there are solutions. Some must be implemented well in advance, during working life, and others can be implemented once retired. Overview of solutions to improve your retirement pension

Thinking about improving your future retirement pension from working life

Becoming an owner

The rent for housing is an expense that considerably burdens the budget of a household each month, and above all that lasts over time. To avoid having to take out this regular amount of money once you retire, think about your possibilities of becoming a homeowner well in advance of your retirement. The younger you buy a property, the more likely you are to have paid it off before you stop working.

If you can also invest in real estate and then rent it, you will benefit every month from the payment of rents which will supplement your retirement pension. Just like the purchase of a main residence, investing in a home, especially if it involves a loan, is all the more interesting the earlier it is made.

Redeem quarters

Buying back quarters to extend the insurance period for retirement and therefore ultimately benefit from a higher pension is another solution for improving retirement income. The redemption of quarters of contributions to the general social security system is possible for years of higher education, incomplete years of contributions, for certain periods of apprenticeship, for periods of activity as an assistant( e) maternal or as a child of former harkis. The request for redemption of terms must be made between the ages of 20 and 66.

Work longer

The longer you work, the more you contribute and the more you improve the amount of your basic retirement pension by benefiting from the bonus:each full calendar quarter contributed beyond your legal retirement age and the number of quarters required to obtain a full pension increases the amount of your basic pension. On the other hand, by delaying your retirement, you continue to earn points for your supplementary pension.

Saving to increase your retirement

Retirement savings and life insurance are ways to save to improve your income after retirement. This is for employees of the general social security scheme, the People's Retirement Savings Plan (Perp), Préfon for civil servants and Madelin placement for the self-employed. These individual retirement savings investments are returned only at retirement age. Conversely, life insurance is not blocked, so it can be taken out from the start of working life. It also has the advantage, while improving retirement income, of benefiting from more attractive tax advantages than individual retirement savings.

Improve your income once you retire

Combining employment and retirement

For retirees from the general scheme, no law prohibits combining employment and retirement, provided that certain rules are observed. For retirees who resume a professional activity, the accumulation of their earned income and the amount of their pension is either full or capped, depending on their situation. This accumulation is complete if you have previously obtained all your basic and supplementary pensions for which you meet the conditions of allocation. If you are not in this case, the accumulation of earned income/retirement pension is capped. The amount of your pension is reduced if this accumulation exceeds the monthly average of your earned income for the last three calendar months or 1.6 times the Smic, if this amount is more advantageous.

Many sectors of activity can offer employment opportunities to seniors such as DIY, gardening, childcare or tutoring for example. House-sitting can also be an activity to consider once you retire to supplement your income.

Selling your home for life

If you are an owner and you need to increase your income once you retire, you can decide to sell your home for life. The buyer undertakes to pay you, every month until your death, a lump sum of money which will supplement your retirement pension. You can continue to live in your house even if sold as a life annuity.

Convert your life insurance into an annuity

If you have taken out a life insurance contract during your professional life, you can request that your savings be returned to you in the form of an annuity paid regularly rather than in the form of a lump sum paid in one go.

Receiving the solidarity allowance for the elderly

For the most modest pensioners, the solidarity allowance for the elderly (Aspa) is intended to supplement their income, or even to enable them to reach a minimum of resources. To benefit from it, you must be 65 years old, or the legal retirement age if you suffer from a disability, and have resources that do not exceed a certain ceiling.