Lenders in France count a pension de réversion, the survivor's pension paid after a spouse dies, as a full income in its own right: paid for life and every month. Added to your own retirement pension, it can be enough for a personal loan, a home improvement loan or a debt consolidation. The condition is to show final award letters and a budget that reflects the loss of your partner's income.
The survivor's pension usually comes in two layers. The basic state scheme pays 54% of the deceased's pension, from age 55 and subject to an income test. Agirc-Arrco, the private-sector supplementary scheme, pays 60% of the deceased's points, from 55 for deaths since 2019, with no income test but stopping for good on remarriage. The MSA applies similar rules for farm workers. English-speaking readers should note that a UK or US survivor benefit is a separate entitlement claimed in that country, and French lenders simply add it to the total.
Which survivor income the bank will retain
When assessing affordability, the adviser adds up your own pension, the basic survivor's pension and the supplementary one. All three appear on your annual tax statements and bank statements. The trouble is timing: until the réversion has been formally awarded, only your own pension counts, and your borrowing capacity looks much weaker than it really is.
A basic amount that can still change
Because the basic layer depends on your resources, it can be revised until it is fixed for good, generally once all your own pensions have been claimed. An informed lender will ask for the latest award letter. The supplementary layer does not vary with income, which makes it the most reassuring component of the file.
A roof repair at 68, in figures
Monique, 68, receives 900 euros of her own pension, 480 euros of basic survivor's pension and 350 euros from Agirc-Arrco, a total of 1,730 euros a month. She owns her house and needs 8,000 euros to redo the roof. Over 60 months at 5%, the instalment is around 151 euros, an effort rate of 8.7%. The file is sound even without a co-borrower.
How remarriage alters the numbers
Remarrying ends the Agirc-Arrco survivor's pension, whereas a civil partnership (Pacs) or living together does not. The basic layer may also fall if the new household's resources exceed the ceiling. Before signing a long loan, work out what your budget would look like without those amounts, especially if a new life together is already on the cards.
Matching the loan to the project
A survivor's pension often allows a return to mainstream credit after months of reduced income. The table compares the financing open to you by amount, with the best place to ask.
| Need | Suitable financing | Who to approach | Watch point |
|---|---|---|---|
| Under 3,000 euros (funeral, equipment) | Supported microloan or pension fund aid | Crédit municipal, CCAS, pension fund social action | A precise project is required |
| 3,000 to 20,000 euros (works, car) | Personal or purpose-linked loan | Your bank, a Crédit municipal, a broker | Age at loan end and insurance |
| Several loans running | Debt consolidation (rachat de crédits) | Specialist broker, Crédit municipal | Longer term, higher total cost |
| Keeping the home after the death | Buying out the children's share, mortgage | Bank and notaire | Debt ratio capped at 35% |
Buying out co-heirs after a death
Under French inheritance law, the children often inherit part of the family home alongside the surviving spouse. Keeping the house may mean buying out their shares, a payment known as a soulte. The corresponding mortgage remains subject to HCSF rules: a 35% debt ratio and 25 years at most. At 70, a term of ten to twelve years with age-appropriate insurance is more realistic, and a lifetime mortgage can be considered from 60.
Claiming on the late spouse's policies
Before taking on any new loan, check the deceased's contracts. If a mortgage was insured on their life, the insurer repays the covered share, which immediately lightens your budget. Life insurance or a funeral plan also pays out a lump sum. Declared to the notaire, these sums frequently remove the need to borrow for inheritance costs.
Pension fund help while you wait
During the months before the réversion is paid, pension funds can grant one-off help, notably towards funeral costs or an urgent bill. Such help is usually non-repayable and should come before any credit. The MSA also points to a survivor's pension simulator on Info-retraite.
Steps to borrow with a survivor's pension
- Claim the réversion from each scheme within twelve months of the death: beyond that, Agirc-Arrco backdates payments by only twelve months.
- Keep every award letter, which shows the amount, start date and whether it is provisional or final.
- List the deceased's contracts, including loan insurance, life insurance and protection policies, and claim the benefits.
- Draw up a twelve-month budget reflecting the lower household income and any costs that disappear.
- Compare at least three offers, including one from a Crédit municipal, which sometimes lends to older retirees than banks do.
- Choose a term that leaves a comfortable margin: keeping the instalment under 15% of income protects you against the unexpected.
Why applications are turned down
Applying too early is the most common reason: without an award letter, the banker ignores the réversion. Next come joint accounts left open or frozen during probate, which muddle the statements, and revolving credit taken out to get through the first months. Waiting for the award, opening an account in your own name and clearing the revolving credit greatly improve your chances.
Survivor's pension versus widowhood allowance
Before 55, the basic survivor's pension is not paid; the allocation veuvage, a temporary means-tested widowhood allowance, may step in instead. Because it is provisional, banks give it little weight. A borrower in this position should favour a microloan or wait for the final réversion.
Can you borrow while the estate is unsettled?
Yes, in your own name. A lender may nonetheless wait for the acte de notoriété (the notarial deed naming the heirs) or the estate declaration to see your true assets, particularly if security on an inherited property is planned.
Ways to ease the budget without a loan
Social housing, a housing allowance recalculated on your new income, the complémentaire santé solidaire health cover or a possible right to the ASPA can lighten the budget for good. Homeowners can also sell en viager or rent a room to a student; the extra income will then count in the bank's assessment.
Survivor's pension and credit: questions and answers
Is the survivor's pension paid for life? Yes, except that remarriage ends the Agirc-Arrco share, and the basic share can be revised on income grounds until it becomes final. That is why lenders regard it as stable.
Does a former spouse share my survivor's pension? Yes. It is divided between the current and former spouses in proportion to the length of each marriage, so your share may be below the full 54% or 60%.
Do I need borrower insurance at 75? It is not legally required for consumer credit, but many lenders insist on it. Some Crédits municipaux insure borrowers until 85 at loan end.
Can I consolidate the loans we took out as a couple? Yes. A consolidation in the survivor's sole name is possible if the new repayment capacity allows it, once any insurance covering the deceased has paid out.
Organisations and offers to contact
- Agirc-Arrco – survivor's pension : Conditions for the supplementary survivor's pension: 60% of points from 55, no income test, sharing between former spouses and claim deadlines.
- MSA – widowhood, survivor's and orphan's pensions : For farm-scheme members: claiming a survivor's pension, the widowhood allowance before the required age, and the Info-retraite simulator.