Receiving 1,700 euros net per month in retirement is not a matter of chance. This amount depends on the salary earned during the career, the number of quarters contributed, and the retirement scheme involved. Since the reform of 2023, the parameters have changed for generations born from 1965 onwards, making previous calculations largely outdated.
The full rate and insurance duration after the 2023 retirement reform
Law No. 2023-270 of April 14, 2023, has raised the legal retirement age to 64 and extended the required insurance duration. These two changes are game-changers for anyone looking to estimate their retirement at 1,700 net before leaving the workforce.
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Leaving without having contributed all the required quarters results in a reduction in the basic pension. Each missing quarter decreases the amount paid. Conversely, extending one’s activity beyond the legal age entitles one to an increase that boosts the pension.
A missing quarter costs more than an additional quarter brings. The reduction penalizes more than the increase rewards, making the insurance duration a priority in any serious projection.
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Average annual salary and basic pension of the private scheme
For private sector employees, the basic retirement pension is calculated based on the average annual salary of the best 25 years. This figure is then multiplied by the liquidation rate (50% at the full rate) and adjusted according to the ratio of contributed quarters to required quarters.
Are you currently earning around 2,000 euros net per month? According to data from competitor Meilleurtaux, a net monthly salary of 1,800 euros in the private sector results in an average pension of about 1,381 euros net per month, including base and supplementary pensions. Reaching 1,700 euros net therefore requires a significantly higher salary or a particularly long career.
The Agirc-Arrco supplementary pension adds to the basic pension. It operates on a points system: each contribution made during the career is converted into points, which are then converted into euros at the time of retirement. Without this supplementary part, few private sector employees reach 1,700 euros net.
Difference between gross pension and net pension
Social contributions deducted from the gross pension (CSG, CRDS, Casa) reduce the amount paid into the bank account. The gap between gross and net is around 10% for most retirees. Therefore, a target of 1,700 euros net corresponds to a significantly higher gross pension.
Online retirement simulator: the only reliable tool for a personalized estimate
Since the 2023 reform, public simulators on info-retraite.fr and lassuranceretraite.fr automatically incorporate the postponement of the legal age to 64 and the new insurance duration. Manual calculations based on the old legal age of 62 are now obsolete.
Why use the simulator rather than a formula found online? Because your situation combines variables that only a tool connected to your career data can cross-reference:
- The exact number of validated quarters, including those granted for children, unemployment, or illness
- The average annual salary recalculated based on your best 25 years with adjustments for past amounts
- The Agirc-Arrco points accumulated, whose value changes each year
- The precise impact of an early or delayed retirement on your net pension
The career statement is the starting document for any estimate. It lists the quarters and declared salaries. Be sure to check it carefully before launching a simulation, as reporting errors exist and can affect the final pension.
Retirement savings supplement: when the mandatory scheme is not enough
Projections from DREES show that the average net pension is progressing slower than the median salary since 2022. In other words, the relative purchasing power of retirees is gradually deteriorating. For the generations currently in the workforce, relying solely on the mandatory scheme to reach 1,700 euros net is becoming increasingly uncertain.
The Retirement Savings Plan (PER) allows for the accumulation of capital or an annuity in addition to the pension. Contributions are deductible from taxable income within certain limits, which reduces the actual savings effort for taxed individuals.
Life insurance remains another lever. Unlike the PER, the funds remain available before retirement. This flexibility comes at a price: no tax deduction upon entry.
What savings effort is needed to bridge the gap
It all depends on the gap between the estimated pension and the target of 1,700 euros net. If the simulator indicates 1,400 euros net, you need to make up 300 euros per month. The earlier savings begin, the lower the monthly effort thanks to the effect of compound interest over time.
- Starting at 35 years old leaves about thirty years to capitalize, with a moderate monthly effort
- Starting at 50 years old imposes a much higher effort to achieve the same supplement
- The management fees of the contract (PER or life insurance) eat into the net return and should be compared before subscribing
Retirees’ fixed expenses (housing, energy, health) have represented an increasing share of the budget since 2021, according to DREES data. A target of 1,700 euros net that seemed comfortable a few years ago now corresponds to the standard of living of the median third of retirees. Anticipating the erosion of purchasing power is an integral part of the calculation.