Investing in a retirement savings plan: understanding the benefits and features to optimize your savings

There retirement planning is a crucial step to ensure a peaceful financial future. A retirement savings plan (PER) Well-managed can have a significant impact on your long-term comfort of life. Find out why and how to invest in a PER to optimize your future income. \n

The advantages of the Retirement Savings Plan (PER)

\nTHE PER offers several advantages, such as tax reduction, the generation of performance, protection of the spouse and the possibility of supplementing one's income in retirement. Thanks to its flexibility and its potential for tax savings, the retirement savings plan (PER) is an attractive option for savers wishing to prepare for their retirement. \n

Tax reduction

\nOne of the main attractions of the PER is the tax advantage it provides. Voluntary payments made to a PER are deductible from taxable income, which allows the amount of income tax to be reduced. \n

Performance generation

\nThe PER also makes it possible to generate performance through the diversification of investments made within the plan. Depending on your investor profile, you can choose between different investment vehicles, such as stocks, bonds or real estate funds. \n

Spousal protection

\nIn the event of the death of the PER holder, the accumulated sums are transmitted to the surviving spouse or designated beneficiaries, in the form of a life annuity or capital. This protection guarantees additional income for the relatives of the deceased. \n

Retirement income supplement

\nThe PER aims to build up savings for retirement, making it possible to supplement the pensions paid by compulsory schemes. The sums can be recovered in the form of a life annuity or capital, depending on the preferences and needs of the holder. \n

The PER compared to old retirement savings products

\nTHE PER, introduced by the Pact law in 2019, stands out from old retirement savings products such as PERP or Madelin. It offers more flexibility and tax advantages, while remaining a blocked product until retirement age. \n\nCompared to PERP and Madelin, PER has the following advantages: \n

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• Possibility of early exit in the event of a life accident
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• Greater diversification of investment supports
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• Better readability of costs and performance
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• Greater tax benefits
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\nHowever, it is important to note that the PER remains a long-term savings product, intended to be released only upon retirement. \n

The PER: a long-term savings product

\nTHE PER is a long-term savings product that allows you to accumulate savings to supplement your retirement income. It can be subscribed individually or as part of a collective scheme set up by the company. \n\nSavings invested in a PER are generally blocked until retirement age, except in exceptional cases (purchase of a main residence, disability, over-indebtedness, etc.). This constraint encourages savers to adopt a long-term approach and not to draw on their savings before the scheduled maturity date. \n

The options available with the PER

\nTHE PER offers several options to personalize your retirement savings according to your objectives and your investor profile. Among the main options: \n

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• Managed management: your savings are managed by professionals who adapt the distribution of assets according to your age and your investment horizon.
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• Free management: you choose the investment vehicles yourself and actively manage your portfolio.
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• Progressive security: this option allows savings to be gradually transferred to less risky vehicles as the maturity date approaches.
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\nIn addition, the PER authorizes different types of payments: regular, one-off or from an employer contribution (as part of a collective PER). \n

Tax reductions with the PER

\nThanks to the PER, it is possible to obtain significant tax reductions. For example, if you are taxed at 30% and make a voluntary payment of €10,000 to your PER, you can deduct €3,000 from your taxable income, i.e. a saving oftax of €900. \n\nThis tax deduction encourages savers to favor the PER to prepare for their retirement and optimize their taxation. \n

The terms of exit from the PER

\nTHE PER offers different exit methods, with specific advantages and disadvantages: \n

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• Life annuity: regular payment of a fixed sum until the end of the holder's life. This option guarantees a stable and lasting income.
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• Capital: one-time recovery of accumulated savings. This option offers more flexibility to use the funds as needed.
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• Mixed: combination of the two previous options, with a life annuity part and a capital part.
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\nEach of these options has distinct tax consequences, which should be carefully considered before making a decision. \n

PER performance compared to old products

\nTHE PER generally outperforms older retirement savings products, thanks to increased diversification and lower fees. However, it is important to compare returns on a comparable basis (investment horizon, level of risk, etc.) to draw relevant conclusions. \n

How to choose the best PER?

\nTo choose the best PER, take into account the following criteria: \n

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• Fees: compare management, entry and exit fees between different PERs.
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• Supportsinvestment : check the diversity and quality of the supports offered.
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• Available options: make sure that the PER offers the management options that suit you (managed management, progressive security, etc.).
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• Services: Evaluate the quality of customer service and online tools offered by the financial institution.
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\nIt is essential to determine your specific objectives and needs before subscribing to a PER, in order to optimize your retirement savings. \n\nBy preparing your retirement with a retirement savings plan, you put all the chances on your side to benefit from comfortable and secure additional income. Don't delay investing in a PER adapted to your expectations and your investor profile.\n