The combination of employment and retirement will be severely restricted in 2027.

"This reform is more important than the suspension of the pension reform because this suspension will only benefit the 1964-68 generations temporarily, whereas here we have a systemic change, which will affect all future generations of retirees," warns labor economist Philippe Askenazy.

The changes incorporated into the Social Security finance law are based on recommendations from the Court of Auditors, which last May pointed out the "windfall effects" generated by this system, which has so far been encouraged by governments.

According to the Court, this accumulation concerned approximately 710.000 people in 2020, who earned an average of 9.000 EUR per year from their activity.

Currently, two systems coexist: full accumulation and capped accumulation.

A person receiving a full pension can return to work without any income limit. Conversely, someone who retired before reaching the full pension rate will have the combined amount of their pension and earned income capped at 160% of the gross minimum wage (SMIC) or their last gross monthly salary (whichever is higher).

This is the case of Jacques (name changed), 61 years old. A fishmonger in the supermarket industry, this Ardèche native retired last year thanks to the long career scheme but does promotional work in supermarkets, to get closer to the salary he earned before his retirement but also to "get out, see people".

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"We have no choice because pensions increase very little each year while the cost of living goes up," he explains, adding that he still has "a small mortgage to pay off on (his) house." Until he turns 63, his combined pension and salary are capped at approximately €2.900 gross.

The rule amendment, in line with the recommendations of the Court of Auditors, is due to come into effect on January 1, 2027.

From this date, a person who has retired before the legal age ("64 years old eventually", according to the government) and who resumes work will have 100% of their income deducted from their retirement pension.

Between the opening of retirement rights and the age of cancellation of the reduction (67 years), the pension will be reduced by 50% of the earnings from activity exceeding a threshold which could be set around 7.000 euros per year.

Combining retirement and employment before age 67 will therefore become very financially unattractive. After age 67, however, full combination will be possible.

The combination of employment and retirement "is simplified" and "returns to its original objective: to supplement the income of the most modest retirees", explains the website of the Ministry of Labour.

The Court of Auditors' report distinguished four profiles of working retirees: 27% of executives with high pensions, 27% of intermediate professions with modest pensions, 24% of people with long careers and average pensions and 22% of people whose careers have been marked by ups and downs, with low pensions, often women.

"The combination of employment and retirement benefits has had some success in increasing the employment rate of seniors; it was a system that worked well, and we are drastically restricting it," laments economist Philippe Askenazy, saying he fears an increase in undeclared work.

According to him, phased retirement, which allows part-time work while receiving part of one's pension, cannot replace combined employment and retirement, because it is difficult to implement in small businesses.

"Companies desperately need certain specialized skills because the cohorts leaving the labor market are much larger than those entering it," says Caroline Young, president of Expertconnect, a firm that offers companies professionals who are "retired or close to being so."

"Once you've left, let's say on average at 64, and you haven't worked for two or three years, you're unemployable by companies, so you're not going to start working again at 67," she believes.