Phased retirement (retraite progressive) is a mechanism that allows employees and self-employed workers to reduce their professional activity while receiving a fraction of their pension, before claiming their full pension rights. This gentle transition between working life and full retirement -- long overlooked and rarely used -- has seen a considerable surge in interest since the 2023 pension reform, which broadened the eligibility conditions and made the scheme more attractive.
In 2026, phased retirement is a strategic option for workers who want to wind down their career while improving their final pension entitlements.
Eligibility conditions in 2026
To qualify for phased retirement, several cumulative conditions must be met.
The age condition
Since the 2023 reform, the minimum age for phased retirement is set at two years before the legal retirement age applicable to your generation. For the 1964 generation, whose legal retirement age is 63, phased retirement is available from age 61. For the 1968 generation and later (legal retirement age of 64), it will be available from age 62.
This increase in the qualifying age mechanically follows the raising of the legal retirement age. Nevertheless, the two-year gap between the phased retirement eligibility age and the legal retirement age is maintained, which preserves the appeal of the scheme.
The insurance period condition
The insured person must have at least 150 validated quarters of pension insurance across all schemes combined. This requirement corresponds to 37 years and 6 months of contributions, which excludes people who have had very short or very fragmented careers.
The part-time working condition
The employee must work part-time with a working duration between 40% and 80% of the full-time working hours applicable in the company. This range allows some flexibility in organising work: an employee can work 3 days a week (60%) or 4 days (80%), depending on their preferences and the options offered by their employer.
The 2023 reform extended phased retirement to executives on annual day-rate contracts
Before the 2023 reform, employees on annual day-rate contracts (convention de forfait annuel en jours) were excluded from the scheme, which effectively ruled out most executives. The law of 14 April 2023 opened phased retirement to day-rate employees, using a reduction in working time of between 40% and 80% of the number of days specified in the day-rate agreement. This extension potentially covers more than 2 million executives in France.
The case of self-employed workers
Since 1 January 2022, self-employed workers (artisans, tradespeople, liberal professionals) can also benefit from phased retirement, provided they meet the age and insurance period conditions. The part-time condition is adapted: the self-employed worker must declare a reduction in their activity and income of at least 20% and no more than 60% compared with their average annual income over the last 5 years.
Calculating the provisional pension
The phased retirement pension is a fraction of the theoretical full pension that the insured person would be entitled to if they claimed all their rights on the date of the application. The fraction depends on the part-time working rate.
The mechanism works as follows: the pension fraction paid equals the difference between 100% and the part-time working rate. For example:
- For an employee working at 60%: provisional pension = 100% - 60% = 40% of the theoretical pension
- For an employee working at 50%: provisional pension = 100% - 50% = 50% of the theoretical pension
- For an employee working at 40%: provisional pension = 100% - 40% = 60% of the theoretical pension
The theoretical pension calculation takes into account the rights acquired at the time of application, i.e. the average annual salary (salaire annuel moyen, or SAM) calculated on the best 25 years, the liquidation rate (with a possible reduction if not all required quarters have been validated) and the proration coefficient.
A worked example
Marc, born in 1963, is 62 in 2025 and meets the conditions for phased retirement (150 validated quarters, switching to 60% of his working time). His theoretical pension, if claimed on that date, would be 1,600 euros gross per month (with a slight reduction for a few missing quarters).
Marc will therefore receive a provisional pension of 40% x 1,600 = 640 euros per month, in addition to his part-time salary (60% of his full-time salary). If his full-time net salary is 3,200 euros, his part-time salary will be 1,920 euros net. His total income will therefore be 1,920 + 640 = 2,560 euros net per month.
Maintained contributions: the real advantage of the scheme
Phased retirement offers a major and often overlooked advantage: the possibility of contributing on the basis of the full-time salary. This is known as "maintaining the contribution base" (maintien de l'assiette de cotisation).
In practice, the employer and the employee can agree, through a collective agreement or individual agreement, to maintain pension contributions (basic scheme and supplementary Agirc-Arrco scheme) on the basis of the full-time salary, even though the employee is working part-time. The employer and employee each bear their respective share of the additional contributions.
This mechanism is extremely advantageous because it allows the employee to continue accruing pension rights as if they were working full-time, while benefiting from the provisional pension. At the time of final pension claim, the pension will be calculated on the basis of all rights acquired, including those corresponding to the additional contributions.
Maintaining contributions is not automatic
Maintaining contributions on the full-time salary basis requires an agreement between employer and employee. The employer is not obliged to accept this additional cost, even if a collective agreement provides for it regarding the employer's share. Negotiate this point before requesting phased retirement. The additional cost to the employer may be offset by incentives (employer contribution exemptions in some cases) or by the value of knowledge transfer to younger employees.
The advantages of phased retirement
A smooth transition to retirement
The abrupt shift from working life to full retirement can be psychologically difficult. Phased retirement allows a gradual transition, with the employee progressively reducing their activity over a period of 1 to 4 years. This gradual transition allows time to develop new activities, prepare personal projects and adapt to a new pace of life.
Improving pension entitlements
During the phased retirement period, the employee continues to accrue quarters and supplementary pension points. If the part-time rate is at least 50%, they automatically validate their 4 quarters per year (provided earnings exceed the minimum threshold). The final quarters contributed can also improve the average annual salary if the pay is among the best 25 years.
Furthermore, if contributions are maintained on the full-time basis, the accrual of Agirc-Arrco points is identical to that of a full-time employee, which significantly improves the final supplementary pension.
Bonus quarters during phased retirement
If the employee meets the full-rate conditions (legal retirement age reached and required contribution period validated) during their phased retirement period, additional quarters contributed generate a bonus (surcote) of 1.25% per quarter, just as for a full-time employee. This bonus will be applied when the final pension is claimed.
This advantage is considerable. An employee who continues in phased retirement for 2 years after reaching the full rate will benefit from a 10% bonus on their final pension, in addition to the extra Agirc-Arrco points accumulated.
A supplementary income before full retirement
Phased retirement allows you to maintain a satisfactory income level while working less. The combination of part-time salary and provisional pension partially, or even fully, compensates for the salary loss from switching to part-time. In some cases, total income can represent 80 to 90% of the previous full-time income.
Tax optimisation
Switching to part-time work can lead to a drop in the marginal tax rate if overall income falls sufficiently. This lower marginal rate may make PER contributions less advantageous on entry but more beneficial on exit. Conversely, it may be the ideal time to make partial withdrawals from a life insurance policy, taking advantage of a lower marginal rate.
Practical steps
With your employer
The phased retirement request starts with the employer, since it requires a switch to part-time work. Since the 2023 reform, the employer can only refuse the request to switch to part-time for phased retirement if they can demonstrate it is incompatible with the company's economic activity. If no response is given within 2 months, the request is deemed accepted.
The employee must send their employer a written request by registered letter with acknowledgement of receipt, at least 2 months before the desired date for switching to part-time. This letter must specify the desired working hours, the schedule distribution and the planned start date.
An amendment to the employment contract formalising the switch to part-time must be signed. This amendment will specify the working hours, the distribution of days and hours, the part-time pay and, where applicable, the maintenance of pension contributions on the full-time basis.
With your pension fund
In parallel with the approach to the employer, the employee must submit a phased retirement application to their basic pension fund (CARSAT for the general scheme) and their supplementary pension fund (Agirc-Arrco). The application must be accompanied by the following supporting documents:
- The phased retirement application form (cerfa n°12916*02)
- The employment contract amendment indicating the new working hours
- An employer's certificate indicating the full-time working hours applicable in the company
- Bank account details (RIB)
- A copy of the identity document
Processing time is generally 4 to 6 months. It is therefore recommended to submit the application at least 6 months before the desired start date.
Final pension claim
When the employee decides to stop working entirely, they proceed to claim their final pension. The final pension is then recalculated taking into account all rights acquired, including those accumulated during the phased retirement period.
The final pension amount is generally higher than the initial theoretical pension, because the employee continued to accrue quarters and points throughout the duration of the scheme.
The final pension cannot be lower than the provisional pension
Article L351-15 of the Code de la securite sociale guarantees that the final pension amount cannot be lower than the provisional pension that was being paid during phased retirement. This guarantee protects the insured person against any potential decrease resulting from the application of new calculation rules or an unfavourable change in the average annual salary. It is an important safety net that reinforces the attractiveness of the scheme.
Limitations and points to watch
Impact on salary and social contributions
Switching to part-time mechanically reduces salary. If pension contributions are not maintained on the full-time basis, rights accrual is proportionally reduced, which can affect the final pension. The employee's share of the additional contributions is borne by the employee, which represents a non-negligible cost.
Impact on departure indemnities
Retirement departure indemnities or redundancy payments are calculated on the basis of the last 12 or 24 months' salary. Switching to part-time for 2 or 3 years before final departure can significantly reduce the amount of these indemnities. However, some collective bargaining agreements provide for calculation on the basis of the reconstituted full-time salary. Check your collective agreement before committing.
Compatibility with the PER
Phased retirement does not constitute a pension claim event as defined by the PER. Savings held in a PER remain locked during the phased retirement period and can only be released when the final pension is claimed. However, the drop in income resulting from part-time work may reduce the tax advantage of PER contributions if the marginal tax rate falls.
Conclusion: a winning scheme, but one to negotiate well
Phased retirement is a particularly advantageous scheme that allows you to combine reduced working hours, supplementary income and improved pension entitlements. Since the 2023 reform, its extension to day-rate employees and the strengthening of the insured person's rights vis-a-vis the employer make it an option to consider seriously for anyone approaching the end of their career.
The key negotiating point remains maintaining pension contributions on the full-time basis. If your employer agrees to bear this additional cost, phased retirement becomes a retirement optimisation tool without equal. Start your preparations at least one year before the planned date and seek guidance from your pension fund on the technical aspects.
The information in this article is provided for guidance only and does not constitute personalised legal advice. The conditions for phased retirement may change as regulations evolve. Consult your pension fund and your employer for an analysis tailored to your situation.