Client's Question:    I am hoping to move to Normandy / Pays de la Loire and work in managing holiday rentals. Can you please let me know how I would pay into the French pension system? And level of state pension after so many years? 

Much depends on how you are planning to work, i.e whether you will be self employed running a gite management business, or whether you will be an employee of such a business. If you are an employee, pensions are organised and handled by the Caisse Régionale d’Assurance Maladie (CRAM). The system operates on the principle that those who can no longer earn a living themselves are financed by contributions from existing workers and employers.

The two systems in the U.K and France have some similarities, in that the amount you are able to draw will be dependent on the number of years’ contributions. According to recent figures the average retirement age in the UK is 63.6 years, whereas in France this figure is 59.2, with only 15% of people between the ages of 60 and 65 still work. In France you can retire at the age of 60 but in order to qualify for a pension (up to 55% of your former salary) you need to have worked for at least 40 years. Under EC regulations, however, if you work, or have worked, in other EU countries you can combine contributions in order to qualify for a state pension here in France.

If it is your plan to be self employed, then your pension will be dealt with by different organisations. A good French bilingual accountant will be able to advise as to the level of pension you can expect to draw in France, based on the level and length of time of your contributions. A self-employed person should contact his/her professional body for more information.  

Blog submitted by: Sharon at Cle France.