The retirement pension of a senior executive is not just a monthly amount. At the end of 2023, the average gross direct pension for all retirees residing in France is approximately 1,666 euros gross per month, or 1,541 euros net after social contributions, according to data from DREES. Senior executives are significantly above this average, but the gap varies by gender, career length, and supplementary scheme.
Replacement rate for executives: why the drop in income is more abrupt
The replacement rate refers to the ratio between the first pension received and the last salary earned. For an executive, this rate is around 60%. For a non-executive employee, it rises to about 80%.
This differential is explained by the Social Security ceiling. The basic pension only takes into account salaries up to the PASS limit. Beyond that, only the Agirc-Arrco supplementary pension compensates, with a modest point yield. A senior executive whose gross annual salary significantly exceeds the ceiling thus experiences a more pronounced proportional loss.
Specifically, an executive earning 6,000 euros net per month at the end of their career can expect a net pension between 3,500 and 3,800 euros, provided they have a full career. This decline in income, sometimes exceeding 2,000 euros per month, constitutes the real financial shock of retirement for this category. The estimate of the average retirement of a senior executive in France largely depends on this capping mechanism.
Cumulative pension over a lifetime: the angle that monthly averages obscure
Focusing on the monthly amount gives an incomplete picture. The Observatory of Inequalities proposes a different calculation: the total pension amount received from retirement until death.
For male senior executives, this estimate reaches about 930,000 euros accumulated over the entire retirement. For workers, the figure drops to about 285,680 euros. The gap, around three to one, does not solely reflect differences in monthly pensions.
Two factors amplify this gap
- The salary at the end of the career: after age 60, a male senior executive earns on average more than 6,000 euros in monthly salary, compared to about 2,000 euros for a worker. The monthly pension reflects this salary trajectory.
- Life expectancy: a 35-year-old male senior executive can expect to live an average of 84 years, compared to 78.2 years for a worker. With retirement occurring at an average age of 63.1 for executives, the duration of pension receipt reaches about 20.9 years of retirement.
- The contribution duration: senior executives more often reach the required number of quarters for a full-rate pension, as their careers are generally continuous and without prolonged interruptions.
This cumulative amount approach reveals that retirement inequalities exceed those of the monthly pension. Life expectancy plays a multiplicative role that is rarely considered in standard comparisons.
Agirc-Arrco supplementary pension: the real weight in an executive’s pension
Since the Agirc-Arrco merger in 2019, the distinction between executives and non-executives has lost its institutional basis. Both categories now contribute to the same supplementary scheme, according to the same brackets.
The difference persists in practice. Executives accumulate more points on bracket 2 (beyond the PASS), with a higher contribution rate on this salary fraction. Over a full career, the supplementary pension can represent more than half of the total pension of a senior executive, while it remains a minority for a non-executive employee.
Simulating your supplementary pension: pitfalls to be aware of
Online simulators often apply an average yield per point that does not take into account past revaluations. The actual yield of the Agirc-Arrco point has decreased over the decades, which reduces the effective pension compared to initial projections.
A senior executive who has contributed for thirty years on bracket 2 may notice a gap of several hundred euros monthly between the simulation and the amount actually paid out. Checking one’s points statement on the Agirc-Arrco website remains the only reliable method to anticipate this component.
Average annual salary and calculation of the basic pension
The basic pension of a private sector salaried executive is calculated based on the average annual salary of the best 25 years, capped at the PASS. The formula combines this average salary, the liquidation rate (50% maximum), and the ratio between the contribution duration and the required duration.
For a senior executive whose remuneration has exceeded the ceiling for most of their career, the average annual salary taken into account corresponds in practice to the average PASS over 25 years. The basic pension is therefore capped, regardless of the actual salary level received.
It is precisely this limitation that makes the supplementary pension so crucial. An executive earning double the PASS will not receive a basic pension that is twice as high. The entire difference lies in the Agirc-Arrco points and, where applicable, in individual retirement savings (PER, life insurance).
Pension gap between male and female executives in France
The available data shows a persistent gap. Female senior executives receive on average a pension lower than that of their male counterparts, despite comparable education levels. Career interruptions related to parenthood, more frequent part-time work, and salary gaps during the career mechanically impact the pension calculation.
The impact is concentrated on the supplementary pension. Fewer years at full rate on bracket 2 means fewer points accumulated, with a cumulative effect over several decades. Child bonuses only compensate for a fraction of this gap.
The average pension of 1,666 euros gross for all retirees masks this reality: when distinguishing by socio-professional category and by gender, disparities widen significantly.
The amount of a senior executive’s pension depends less on the status itself than on three concrete variables: the average salary over 25 years, the number of supplementary points accumulated on bracket 2, and the actual duration of receipt linked to life expectancy. Comparing only monthly pensions ignores nearly half of the picture.