Two EU pensions: how does this work?
If you have worked in two different EU countries, and have paid pension contributions in both of these, there is a high likelihood that you will have gained pension rights in both countries. We understand that it can be confusing trying to navigate the administration of one pension, let alone two. Considering this, here are a few important points to note :
In France, pension contributions are compulsory and you can find the amount transferred into your pension by looking at your payslip, often under the heading ‘Retraite’, meaning ‘retirement’ or ‘pension’. However, this is not the case for all countries, so make sure to research how pensions operate in your country of work.
All EU (European Union), EEA (European Economic Area) countries and Switzerland calculate the pension contributions in the same way. This is because they have social security co-ordination. However, following the global phenomen that is Brexit, navigating your pension contributions are a little more complex for Brits.
British workers are divided into two separate groups ; those who worked in the EU before 31st December 2020 (and are consequently still covered by the Withdrawal Agreement) and those who moved to the EU to work after this date. In the case of the latter option, your pension in then calculated as a Non-EU national.
For workers in EU, EEA and Switzerland, two calculations are used to determine your pension rate. The European Commission website explains this process in more detail. Essentially, a calculation is made from the scheme of the country and another is made using the European community formula.
Caclulations are made based on how many years you have worked in the country and your pension contributions.
IMPORTANT :
As demonstrated in today’s current affairs, the retirement age differs from country to country. This consequently impacts your pension as it determines the age at which you can access your pension. If you have worked in two countries with different minimum retirement ages, then you will only receive the pension funding from the country with the lower retirement age, until the point where you are eligible to access your pension from the second country (with the higher retirement age).
If you are struggling to navigate your pension(s) and require our support or advice, do not hesitate to contact us either by telephone at +33 (0)1 53 93 94 20 or send an email to [email protected]. Our experts will be more than happy to answer any questions you may have.
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