France considers limiting increases for higher pensions in 2027

The French government is considering limiting the increase in higher pensions in 2027 as part of its efforts to improve the country’s public finances.

The proposal was raised by Economy and Finance Minister Roland Lescure, who said that asking wealthier pensioners to make a greater contribution to the country’s financial recovery could be considered, including through a more moderate increase in their pensions.

The proposal comes amid growing debate over the cost of the government’s decision earlier this year to suspend the pension reform that was due to gradually increase France’s minimum retirement age from 62 to 64.

Up to €1.5 billion in potential savings

Several experts have estimated that limiting pension increases for higher-income retirees could generate significant savings for the French state.

One proposal would be to increase some pensions by only half the inflation rate. With inflation at 2.1% in July, applying half of that increase to pensions of around €3,000 a month could generate approximately €700 million for public finances.

If the measure were extended to pensioners receiving more than €2,000 a month, the potential revenue could rise to around €1.5 billion.

The proposal is being discussed just weeks before the French government is expected to finalize its 2027 budget, at a particularly sensitive political moment.

Pensioners could play a key role in the elections

The debate is also politically sensitive because France will hold presidential elections in 2027. Pensioners represent almost 25% of the French population and are among the groups with the highest electoral turnout.

Any decision to limit pension increases could therefore have significant political consequences, particularly if retirees perceive the measure as a loss of purchasing power.

The government is facing the difficult task of reducing public spending while avoiding measures that could further alienate an important section of the electorate.

France faces one of the eurozone’s largest deficits

France’s public finances remain under considerable pressure. In 2025, the country recorded a public deficit equivalent to 5.1% of GDP, the second-highest deficit in the eurozone, behind Belgium.

The government is therefore looking for new ways to reduce spending and increase revenues, with pensions becoming one of the areas under discussion ahead of the 2027 budget.