Basic pensions: the increase of January 1, 2022 is known, bad news for purchasing power

After the disappointment caused by the small increase of 1% of the Agirc-Arcco additional pensions granted on November 1, basic pensions will also increase according to a rate lower than the inflation forecast for 2021.Fixed at 1.1% against 0.4% on January 1, 2021, the increase that will take effect on January 1, 2022 for a translation on pensions in early February, was formalized Laurent Pietraszewski, the Secretary of State for Pensions.

No surprise, therefore for all the beneficiaries of a basic pension, with the exception of that of lawyers, since the final rate is in accordance with the estimate made at the start of the school year by the Social Security Accounts Committee.

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However, the law has been strictly applied

As disappointing as it is, this revaluation of basic pensions has been calculated by the government according to the formula inscribed in law since 2016.The same method had been used in 2020.But if it takes into account the inflation rate, how was this 1.1% revaluation rate was obtained while it is well below the evolution of the prices observed in recent months andweeks?

We know, for example, that the last forecast for consumer prices evolution (excluding tobacco as tobacco included) made by INSEE for 2021 is 1.5 %.This trend expressed on an annual average is greater than the revaluation of 1.1% of basic pensions.However, according to the Social Security Code, the calculation of the revaluation based on the relationship between the average price index over the period of November 2019 to October 2020 and that between November 2020 and October 2021.

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It is taking into account the last two months of 2020, during which the rates of monthly indices were negative which explains the difference between the inflation rate such as retirees, like any citizen, suffer, and the rateincreased basic pensions.