Question to an expert
I have “tranche C” supplementary retirement points, is it more interesting to wait until my 67th birthday to liquidate them?
Employees who had very high incomes before 2016 (exceeding four times the annual social security ceiling, 154,464 euros in 2016), even over a short period, obtained, in addition to their classic Agirc-Arrco supplementary retirement points , specific points called “slice C”.
Unlike the classic points, they can only be liquidated without reduction from the age of 67 (for those born from 1955), even if the person has all his quarters before and obtains the full rate in the general scheme.
Return on investment at … 85 years
Whoever wishes to retire before that age, for example at 62, can. He has two options: liquidate his classic points at age 62 (therefore receive the part of the pension resulting from these rights) and wait five years to liquidate his “C” points (therefore to collect this last part of the pension), or liquidate from 62 n all his Agirc-Arrco points, including tranche C, and see his additional “tranche C” suffer a definitive penalty.
A return on investment calculation needs to be done.
By liquidating all his points from the age of 62, the employee undergoes a final reduction of 22% on his tranche C pension and will only receive 78% of his rights from it until his death. If he liquidates his classic points and waits 67 years for tranche C, he will certainly receive 100% of his rights from tranche C but will have suffered a shortfall of 390% (78% x 5 years) before that.
When will this investment (the fact of having waited 67 years to liquidate your C points) pay off? We must divide the shortfall (390%) by the retirement gain (22%): almost eighteen years. He will be almost 85 years old.