Pension - Obligatory & Private

[Veloiste]

We have just discovered that there is an obligation to make pension payments in France. Is the amount due based on a percentage of earnings (gross or nett) and is one obliged to make a private 'top up' contribution, or does it depend on what you personally want to achieve as a pension?

[Benjamin]

Can you tell us the source where you heard/were told this?

[marina]

If you are employed (salaried or self employed) then pension payments are indeed obligatory. Except for a few occupations that do not have a dedicated caisse. Non-working people do not have to contribute to vieillesse as it is known. The system works totally differently from the UK pensions and it is impossible to say what, if anything, you will receive as you are in effect paying for current pensioners rather than building up your own 'pot'.

[KathyC]

[quote user="marina"]The system works totally differently from the UK pensions and it is impossible to say what, if anything, you will receive as you are in effect paying for current pensioners rather than building up your own 'pot'.[/quote]

That's the way the pension system works in the UK as well!

[marina]

Not exactly, it is certainly how the basic UK state scheme operates, but British workers are expected to take out a personal plan as well or to contribute to a company scheme. That doesnt seem to happen in the same way in France where there is an assumption that the caisse to which you have paid throughout your working life, generally in the same occupation and often for the same employer, will pay for everything so the idea of additional private or company schemes is somewhat alien. Some occupations like farmers are different of course - farmers often struggle throughout their working lives and suddenly become wealthy on retirement after the sale of stock, equipment etc (or so I am told by a French farmer).

[KathyC]

[quote user="marina"]Not exactly, it is certainly how the basic UK state scheme operates, but British workers are expected to take out a personal plan as well or to contribute to a company scheme.).[/quote]

That's a very broad generalisation about the UK; there are enormous numbers of people in the UK ( about 30%, I believe) who have only the state pension provision. People who post on a French property website are not really representative of the population as a whole!

[shimble]

i was self employed as a "travailleur independant", (different statues have differnt regulations) and my accountant told me i was not obligated to pay for my retrait , so i didnt for three years. i never paid. when i finished my activity it was questioned why i had never paid i replyed that as a travailleur independant my accountant had told me i did not have to. the chambre de commerce found this unusual and stated i may have to pay back dated monies. six months later nothing has come of this. i did not pay but i have no retirement fund or pension. ps this was not a good accountant.

 to receive full pension benefits you need to have paid into the scheme for 40 years therefore anyone over say 35 years old will not receive a full pension untill they have worked and paid till the age of 75.

and yes i believe that your pension is calculated  on your earnings as with all other social charges

anyone paying onto a pension fund for less than 40 years should make sure of the benefits received at retirement age. i dont know how this affeects state pension or whether you are eligeable.

 if you have been in france for more than five years you are not eligeable to take out a private pension in the uk, i dont know how private pensions work in france, but if you have an address and an income in the uk it would be wise to start a private pension and continue to pay once in france, i have considered returning to the uk and taking a short term job to start a private pension that i can continue, because if not i can look forward to poverty in old age. either that or get rich before i am old.

its never easy is it?

[Gluestick]

Suggest you explore the concept of setting up a small limited liability company in the UK and setting up a Small Self Invested Pension Plan.

You can literally write your ticket with this!

Normally, of course, regular amounts would be contributed by the employer (the company) or the employee or both; however, nothing preventing lump sum contributions.

Any contributions would primarily be free of UK tax: however and of course, you would need a revenue stream for this and thus some trading activity.

Once established, thereafter you can achieve all sorts of wonderful things!

 

[Ron Avery]

And the OP's answer to Benjamin question is...............................?

All this about UK pension schemes is very interesting but we don't know what the OP was on about do we?  Neither I suspect does she[Www]

[Benjamin]

I posted the question because I wasn't sure if Veloiste was asking as an employed person in France or someone hoping to become employed or someone who'd just heard something "down the pub".

They may have received an answer which suited their question in some of the replies given or not. [:-))]

It's just that the rest of us will never know.

Of course (and I make no apologies for hijacking this thread) the other side of the coin is someone like CatherineS2 under the thread Help! Tiling Disaster in House Renovations in France who has consistently provided feedback when she's received help to the original question that she posed.[:D]

At least the people who tried to help now know if their advice was of any use.

[Veloiste]

I did not respond to Benjamin as it was of no consequence. I sought an answer to a question, which others kindly attempted to supply. At the moment I have no definitive response. We are currently sorting out many things, and the question of a pension will have to wait, but not too long as we don't want to end up being told we should have been paying if we do not make contributions. I appreciate the point about feedback, as a means of showing appreciation, and I certainly appreciate the responses of those who have made a positive contribution.

And to respond to Ron Avery - I do not know what I am going on about, as you put it, which is why I made the post in the first place.I would have thought that was obvious