Calculating basic pension benefits: the formula, the rate and a numerical example

The basic state pension from the French National Old-Age Insurance (Assurance retraite) is calculated using three factors: your average annual income, a maximum rate of 50 %, and the ratio between your contribution quarters and the required number of quarters for your generation. The average annual income is the average of your 25 most advantageous years. The 50 % rate is reduced if you retire before age 67 without having accumulated all your required quarters.

This page explains the formula and illustrates it with an example. It deals with the basic state pension. It does not cover supplementary pensions, the situation of people residing abroad, or special pension schemes.

The formula

According to the official information sheet on service-public.gouv.fr, the annual pension is equal to:

average annual income × pension rate × (your insurance period with the Retirement Insurance ÷ insurance period required for a full-rate pension)

Three questions arise:

1. What income is taken into account?
2. What rate applies to this income?
3. How many quarters do you have, compared to the required number?

First factor: average annual income

Average annual income is the average of your gross annual earnings over your 25 most profitable years of your career. Two rules apply before calculating the average:

• Incomes are being revalued. They are calculated using the coefficients in effect at the time of your departure.
• Income is limited to the Social Security ceiling. This applies to income earned from 2005 onwards. The income ceiling in 2026 is €48,060 per year, or €4,005 per month. The official document does not specify which year's ceiling applies to each past income; you should contact your pension fund for the relevant figures.

Income exceeding the ceiling is therefore not fully taken into account: it is counted up to the ceiling. The maximum pension is described below.

Parents' case. For an increase in pensionable service due to one child, the number of years taken into account is reduced from 25 to 24. It increases to 23 for an increase due to two or more children. Two decrees dated July 29, 2026 (No. 2026-699 and No. 2026-700) establish this rule. The date from which this calculation applies to a retirement in progress should be verified with your pension fund before making a decision.

Second factor: the rate

The rate is 50 % for a full-rate pension. A full-rate pension is a pension without any reduction.

You can obtain the full rate in two ways:

• Between the legal age and 67 years old, If you have the required number of quarters for your generation. If you have contributed to other schemes, the official full-rate statement indicates that the total insurance period, across all schemes, is taken into account.
• At 67 years old, regardless of your number of quarters.

Certain situations also entitle individuals to the full pension rate before age 67: incapacity for work (at age 62), long career, disability, and invalidity. These conditions are not discussed here.

The discount

If you retire before age 67 without the required number of quarters of contributions, the 50 % rate is reduced by 0.625 points per missing quarter. Four rules govern this calculation:

• The number of quarters taken into account is the smaller of two differences: the quarters that separate you from 67 years old, or those that you are missing in relation to the required duration.
• The result is rounded up to the next whole number.
• It is limited to 20 quarters.
• The floor rate is 37.5 %.

The page pension discount and bonus This mechanism is detailed. On the bonus side, a full calendar quarter worked in addition, beyond the minimum retirement age and the number of quarters required, increases the pension by 1.25 %.

Third factor: the quarterly report

The numerator represents your pension insurance quarters. The denominator represents the required period for a full pension, which depends on your year of birth.

Since the Social Security Financing Act for 2026 (Law No. 2025-1403 of December 30, 2025), the increase in the legal retirement age and the required insurance period is suspended until 2028. The following table applies to pensions taking effect from September 1, 2026.

A quarter of pension contributions is validated with a gross annual income of €1,803, which is 150 times the hourly minimum wage. The number of quarters is limited to 4 per calendar year.

At age 67, the rate is 50 % even with few quarters of contributions. However, the ratio of quarters still applies. An example from the official document illustrates this: with an average annual income of €38,400 and 158 quarters out of 170, retiring at age 67 yields €17,844.71 per year, or €1,487.06 gross per month. With 170 quarters out of 170, the same basis yields €19,200 per year, or €1,600 gross per month.

Quarters validated with another fund entitle the holder to a second pension, calculated according to the rules of that fund.

A ceiling and a floor

The ceiling. The basic pension cannot exceed 50% of the Social Security ceiling. For retirement in 2026, this equates to €2,002.50 gross per month. The official document specifies that this maximum can be exceeded if you are eligible for a pension increase.

The floor. A minimum pension exists. For retirement before age 67 with the required number of quarters of contributions, all paid into the system, it is €10,847.22 gross per year, or €903.94 gross per month, provided the other conditions are met. These conditions include having a full-rate pension from the French National Old-Age Insurance (Assurance retraite), having claimed all your pensions, and the total of your pensions not exceeding €1,410.89 gross per month. It is granted automatically if the conditions are met. Other cases (required quarters not all paid into the system, retirement at age 67 without the required number of quarters) have a different base amount: the official information sheet details these.

Numerical example (fictitious profile)

Situation. Marc was born on July 1, 1964. He plans to retire on July 1, 2027, at age 63. His legal retirement age is 62 years and 9 months, and the required number of quarters for his generation is 170. He has 159 quarters, all validated by the French National Retirement Insurance. His average annual income is €38,400 (based on a hypothetical profile).

Issue. What gross annual and monthly pension does this departure provide?

Strategy. Apply the formula factor by factor.

• Average annual income: €38,400.
• Reduction quarters: up to age 67, 16 quarters are missing; compared to the 170 required, 11 are missing. The smallest difference is retained: 11 quarters.
• Rate: 50 % − (11 × 0.625 %) = 43.125 %.
• Quarterly report: 159 ÷ 170.

Result.

Marc receives €38,400 × 43.125 % × 159 ÷ 170 = €15,488.47 per year. The difference from the benchmark is €3,711.53 per year. The discount accounts for €2,640, and the ratio of quarters accounts for €1,071.53.

This profile is fictitious. The calculation does not take into account the minimum pension, any potential increases, or other pension schemes, and the amounts are gross. It illustrates the mechanics of the system. It does not predict your individual situation.

What changes depending on your situation

• Your year of birth : it sets the legal age and the required duration.
• Your income : above the Social Security ceiling, the excess portion is not included in the calculation.
• Your children : the number of years taken into account can be increased to 24 or 23.
• Your cash registers : a career in several schemes entitles you to several pensions, each calculated according to the rules of its fund.
• Your starting age : before age 67, the discount depends on the smallest difference between age and quarters.
• Special situations : unsuitability, long career, handicap, disability.

The rule depends on your situation. No results are guaranteed.