Introduction
The word “retirement” is enough to make people roll their eyes. Between one reform after another, the announced fall in pensions, the uncertainty over retirement ages and the difficulty of estimating what you will actually receive, the future looks more and more blurred.
It is in this context that the Plan Épargne Retraite (PER) was launched, created by the loi Pacte of 2019.
The aim: to unify, simplify and revive retirement savings in France.
The PER replaces several older schemes seen as too compartmentalised and ill-suited (PERP, Madelin, Préfon, Article 83…). More flexible, easier to read on paper, it has every appearance of a modern and effective tool.
But what is the reality? Is it as advantageous as people claim? Does it suit every profile? And above all, what are the keys to using it well? This guide offers you a complete overview of the individual PER.
What is the PER?
The PER is a long-term savings product, designed to prepare for retirement while enjoying immediate tax advantages. The idea is simple: you pay money in during your working life, it is invested according to your profile, and you get it back at retirement as capital, as a pension, or as a mix of the two.
The big novelty of the PER is its structure in three compartments, brought together in a single wrapper:
| Types of PER | For whom? | How do you open it? |
|---|---|---|
| PERIN (Individual) | Anyone, employed or self-employed | Bank, insurer, independent adviser |
| PERCOL (Collective) | Employees in a company that has a scheme | Offered by the company |
| PEROB (Compulsory) | Employees covered by a specific agreement | Set up by the employer |
This article focuses on the PERIN (Plan Épargne Retraite Individuel), open to everyone, whatever your status and your professional situation.
This article focuses on the PERIN (Plan Épargne Retraite Individuel), open to everyone, whatever your status and your professional situation
How does a PER work?
The way a PER works is relatively flexible. You can make free payments into it, one-off or regular, at your own pace. In return, the funds stay locked until retirement, apart from specific cases of early release, such as buying a main residence or situations of force majeure (disability, death of a spouse…).
A PER can be managed in two ways:
- Self-directed management: you choose the investment vehicles yourself (euro funds, unit-linked funds, property, and so on).
- Managed allocation: an allocation is set automatically and changes over time, according to how far you are from retirement: safer as the date approaches.
Once retirement age is reached, you have the choice of how to take your money out: as capital (in one go or in instalments), as a life annuity, or through a combination of the two. Each option has a specific tax impact, to be planned carefully.
Why the PER can be very advantageous
The PER has several advantages, in particular for taxpayers on a high tax rate.
The first advantage lies in the tax deduction. Each payment made can be deducted from taxable income, up to an annual ceiling (10% of professional income, or a minimum flat amount which is capped at 8 times the annual Sécurité Sociale ceiling, the PASS. The self-employed have a higher ceiling). This makes it possible to reduce your tax immediately.
Let's take a simple example: if you are taxed at 30% and you pay 3 000 € into a PER, you can save up to 900€ in tax the following year, which can move you down a tax bracket!
The second advantage is financial and structural: the money placed in the PER builds up over the long term, with compound interest and scope for diversification, in particular through dynamic vehicles (unit-linked funds). Over several decades, the tax leverage combined with performance can be significant.
The third advantage, often poorly known, is the flexibility at the exit. Unlike the older schemes, which imposed an exit as a pension, the PER now allows a partial or total withdrawal as capital. This lets you fit the scheme to your plans, in particular to fund an active retirement or to pass on wealth.
Finally, certain cases of early release are allowed: buying a main residence, disability, death of a spouse, over-indebtedness, the end of unemployment entitlement… All situations that reinforce the practical value of the PER.
Need personalised support?
The PER is a tool with strong potential, but it is also a structuring commitment. To use it well, you need more than brochures or online calculators.
At WYP Consulting, we help you to:
- Assess whether the PER is right for you now or later
- Choose the right contract, with controlled charges and diversified vehicles
- Put in place a balanced, tax-optimised retirement strategy
Book an appointment with a WYP Consulting adviser
A free first conversation with no commitment will let you clarify your options.
