If the standard of living drops in retirement, the most modest see their standard of living increase in retirement, according to a note from INSEE published on Thursday. An increase which is explained by lower incomes at the end of a career often marked by unemployment, according to the institute of economic studies.
INSEE studied changes in the standard of living of people who retired in 2013, comparing a period ranging from three years before their departure to that of the three years that followed. Unsurprisingly, six in ten (56%) retirees saw their standard of living fall, by an average of 7.9%. In contrast, 32% of them experienced an increase of more than 10%, illustrating "various" situations, notes the Institute of Statistics.
A difficult end of career
Thus, the poorest 10% in 2010 saw their standard of living increase by 69% between 2010 and 2016, while conversely the wealthiest 10% saw it drop by 27%. "The liquidation of pension rights leads in particular to increase the average standard of living of people who have experienced difficult situations at the end of their career on the labor market", such as periods of unemployment, explains INSEE.
And among the most modest, less than one in four received income from work three years before their retirement, compared to more than eight in ten for the wealthiest. Consequence: the standard of living gap between the poorest and the most affluent narrows after retirement. The average standard of living of the wealthiest 10% is 8.9 times higher than that of the more modest 10% three years before retirement, compared to 3.8 times three years after.
And overall, new retirees are less affected by poverty than the general population. 7% have a standard of living below the poverty line three years after their retirement, compared to 14% of people at the national level.
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- Retirement
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- Poverty