How does unemployment affect the calculation of retirement?

Question to an expert

Will my unemployment penalize my future retirement?

People who are unemployed or who are afraid of being unemployed are often worried because they think that in addition to losing immediate purchasing power, their future retirement will suffer. However, very often, a period of unemployment only has a marginal impact on the pension.

Be careful, we are talking about “normal” compensated unemployment here – because partial or non-compensated unemployment can have real negative effects.

50 days of compensated unemployment = 1 quarter

To understand, it should be known that the retirement of private sector employees includes a basic plan, retirement insurance, and a complementary one, Agirc-Arrco. For the basic scheme, fifty days of unemployment give the right to a quarter (up to four per year): no prejudice, therefore, compared to the four quarters that a year of work would have brought.

For Agirc-Arrco, no loss either: the points are awarded on the basis of the last gross annual salary before unemployment, not the unemployment benefit.

Read also A retiree in France receives an average of 447,000 euros in pensions

The only shortfall may be in the calculation of the average salary for the best twenty-five years, for the basic pension, because periods of unemployment are excluded. But the impact will be marginal.

Note, however: unemployment can penalize you if you started working early and if you plan to take advantage of the early departure for a long career because only four quarters of unemployment can count for this device.

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