The government is considering reducing the tax allowance ceiling for retirees to 3,000 euros as part of the 2027 budget proposal. This measure, which would be accompanied by a slower increase in some retirement pensions, is intended to contribute to the 54 billion euro savings effort announced by the executive branch.
Currently, retirees can benefit from a 10% tax allowance on their declared pensions, up to a limit of €4,439. Reducing this limit to €3,000 would, according to a source within the government quoted by Le Figaro , generate approximately €1,4 billion in additional tax revenue. A similar measure had already been passed by the Senate in the fall of 2025 before being abandoned during subsequent budget discussions.
Pensions less adjusted according to income
The government is also considering freezing or under-indexing basic retirement pensions. According to details of the draft social security financing bill reported by Le Monde, pensioners receiving between €1,260 and €2,034 could see their pensions increase more slowly than inflation, while pensions above €2,034 would be frozen. Pensions below €1,260 would continue to be indexed to inflation.
The government insists it wants to protect small pensions. The Ministry of the Economy and Finance (Bercy) clarifies that the measures currently under discussion are proposals intended for parliamentary debate and ongoing consultations. The draft state and social security budgets are to be presented to the Council of Ministers on October 1st before being examined by Parliament.
