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Auto-entrepreneur and retirement: What are your rights?

Auto-entrepreneur and retirement: What are your rights?

The activity carried out by theauto entrepreneur on a principal or additional basis, entitles him to pension rights under the same conditions as traditional self-employed workers[1]. To do this, he must pay his social security contributions. But still it is necessary that it achieves a minimum of turnover?[2].

Completion of specific procedures is in no way required for affiliation to a given pension fund. Indeed, following the declaration of the micro-enterprise and depending on the nature of the activity envisaged, URSSAF automatically affiliates the micro-entrepreneur to the corresponding pension fund.[3].

Depending on the nature of the activity, the auto-entrepreneur comes under either the Social Security scheme for the Self-Employed (SSI)[4] or the Interprofessional Provident and Old-Age Insurance Fund (CIPAV).

Social Security for the Self-Employed

It brings together craftsmen, traders and unregulated liberal professions (consultants, draughtsmen, designers, driving school instructors, palmists, magnetizers, etc.).

The Interprofessional Provident and Old-Age Insurance Fund

It concerns the regulated liberal professions architects, consulting engineers, expert surveyors, agricultural and land experts, mid-mountain guides, construction economists, etc.[5].

How the self-employed pension plan works

The operation of the auto-entrepreneur pension plan is very simple. Indeed, to benefit from pension rights, the latter must pay his contributions (a) and validate the number of quarters required (b). Finally, it is only once retired that the auto-entrepreneur will benefit from his contributions (c).

Payment of dues

The principle is simple: pay for it in retirement. Indeed, the auto-entrepreneur must pay a quarterly auto-entrepreneur contribution to be able to benefit from it on retirement. It is up to Urssaf to ensure payment to the organization concerned.[6].

Note that the amount of the contribution is based on the turnover achieved and the amount paid is used to finance both the basic pension and the supplementary pension. Note that the higher the turnover, the higher the contribution.

Validation of quarters

To benefit from a full pension, the micro-entrepreneur must validate sufficient auto-entrepreneur retirement quarters[7]. In principle, the latter can validate up to 4 quarters per year (for retirements at age 62). However, if this departure takes place at age 67, the validation of the quarters no longer holds. In this case, the auto-entrepreneur will be able to benefit from a full pension.

The validation of the quarters requires the achievement of a sufficient turnover and must be declared.

Retirement

As already mentioned, it is retirement that entitles the auto-entrepreneur to the benefit of pension rights. In France, you can retire at the age of 62. But to benefit from a full pension, the micro-entrepreneur must have validated the number of quarters required.

The calculation of the retirement of the auto-entrepreneur

The formula used to calculate the pension varies according to the affiliation fund.

For the ISS: Average annual income x Rate x (number of insurance quarters validated / reference duration)[8].

For Cipav: the calculation of pension rights depends in part on the number of points acquired by the auto-entrepreneur[9].

Indeed, here, the contributions paid by auto-entrepreneurs are converted into points, the number of which is then multiplied by their value.

In short, only the payment of contributions which vary according to the turnover achieved, opens pension rights to the auto-entrepreneur. To do this, the latter must during the exercise of his activity, validate the quarters of contribution required to be able to claim it on retirement.


  • [1] https://www.legalplace.fr/guides/cotisation-retraite-auto-entrepreneur/
  • [2] https://www.assistant-juridique.fr/validation_retraite_autoentrepreneur.jsp
  • [3] https://www.aide-sociale.fr/cotisation-retraite-auto-entrepreneur/
  • [4] Formerly known as the RSI (Régime Social des Indépendants)
  • [5] Cipav list (https://bpifrance-creation.fr/encyclopedie/trouver-proteger-tester-son-idee/verifiertester-son-idee/liste-professions-liberales)
  • [6] https://www.getcaravel.fr/blog/auto-entrepreneur-quels-sont-vos-droits-a-la-retraite
  • [7] https://www.getcaravel.fr/blog/auto-entrepreneur-quels-sont-vos-droits-a-la-retraite
  • [8] https://www.aide-sociale.fr/cotisation-retraite-auto-entrepreneur/
  • [9] https://www.aide-sociale.fr/cotisation-retraite-auto-entrepreneur/

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