Policy. Eight months before the presidential election, the partial freeze of pensions once again in the debate

Last Thursday, the Minister of the Economy, Roland Lescure, considered that “the question of the contribution of well-off retirees to the recovery effort, for example through a more moderate indexation of their pensions, deserved to be asked”, on condition of “preserving the most modest retirees”.

The under-indexation mechanism consists of revaluing basic retirement pensions to a level lower than that of inflation, contrary to what is normally provided for in the law.
This system can be targeted at the highest retirement pensions. Due to inflation, basic retirement pensions were increased by around 15% between January 2022 and January 2026.

A recurring idea

The subject is not new and appears in numerous reports. In July, the Pension Monitoring Committee (CSR) reiterated its 2025 recommendation to under-index pensions to return to balance in the system. Before him, the Court of Auditors also criticized the indexation of pensions to inflation, considered costly.

Last year, the government of Sébastien Lecornu had already tried to freeze these pensions in order to free up nearly 3.6 billion euros, but had to give up in the face of opposition from Parliament. Even Michel Barnier’s more moderate proposal, which consisted of a six-month postponement of the increase in pensions, had largely contributed to the revolt of the RN and the left which had led to the censorship of his government.

What economic gain?

The measure could save several billion euros – up to 6 – depending on the thresholds chosen and the choice of under-indexing or total de-indexing. The threshold of 3,000 euros gross monthly has been circulating, without any official confirmation. “If we have a high threshold, we will only affect well-off retirees but as a result it will bring little return, if we have a low threshold it will bring in more but it will ultimately affect retirees who are not so well off,” summarizes Patrick Aubert, economist at the Institute of Public Policies.

In any case, not increasing part of retirement pensions in 2027, when inflation in 2026 is expected to rise, close to 2%, could make it possible to generate significant savings. In 2024, for example, the OFCE economic institute estimated that the six-month postponement recommended by Michel Barnier would save 3.4 billion euros.

In July, the CSR estimated that under-indexing of two points in total by 2030 would bring the pension system back into balance by that date, instead of the deficit of 6.8 billion currently anticipated by the Pension Orientation Council (COR). However, according to the CSR, it is necessary to “give visibility” to retirees to avoid savings behavior that is harmful to public finances.

Highly sensitive subject

Politically, the subject is flammable. Retirees vote much more than workers, touching pensions can anger this key electorate. Former European Commissioner Thierry Breton, whose name is circulating at the center for the presidential election, said he was opposed to partial deindexation, judging that the executive had to “take responsibility” for the suspension of pension reform.

The socialist deputy and declared presidential candidate Jérôme Guedj, for his part, has not closed the door, provided that it is part of a broader effort also targeting inheritances, the “social niches” of companies and the giants of artificial intelligence. “The average pension is rather 1,710 euros so we are always trying the same recipe by trying to lower pension levels starting with, quote, the highest and then attacking all pensions,” criticized Denis Gravouil, member of the CGT confederal office.

Contrary to popular belief, “the purchasing power of retirees has been declining for several years, in particular due to the already effective deindexation of supplementary pensions,” underlines Michael Zemmour, economist and researcher associated with Sciences Po. “The only category of retirees who have seen their income protected are those with assets,” he adds. “If the idea is to make this category of population contribute, it would be more effective to directly target this income,” according to him.