Open a Retirement Savings Plan in France
Whether you’re an employee or an entrepreneur, your income will decrease once you retire (up to 50%!). Subscribing to a retirement savings plan allows you to anticipate this income reduction and, most importantly, reduce your taxes starting today.
In France, there are several tax reduction tools, and the IRA (Individual Retirement Account called PER in french « Plan épargne Retraite ») is one if you wish to reduce your taxes and invest your money with varying interest rates depending on the investment.
It is advisable to open one as soon as possible; don’t wait until retirement, as it would be too late, obviously! It’s a long-term investment.
- Fast
- Simple
- Efficient
What is a IRA (individual retirement account)?
Concrete example, objective: reducing taxes:
A person, who has to pay €1,000 in taxes at the end of the year (with a marginal tax rate of 30%), decides to open a PER (Retirement Savings Plan) account with Allianz for €1,000, thus entitling him to a tax deduction of €300. His capital of €1,000 will be invested and will earn him interest.
They can also invest any amount they wish each month to only reduce a portion of their taxes.
The deduction ceiling for retirement contributions is equal to 10% of the declared salaries and wages on your tax return. This amount is indicated on the last page of your tax assessment notice under ‘Ceiling for contributions paid’. »
- Reduce a portion or all of your taxes
- Choose how to allocate (possibility to secure 100% of the capital with the EURO fund)
- interest added to your capital
- your savings remain accessible (can be withdrawn) under certain conditions*
Is it possible to withdraw money from a PER?
*You can withdraw your money in the following cases:
- Acquisition of your primary residence
- Termination of non-salaried activity following a judgment of judicial liquidation
- Over-indebtedness
- Expiration of your unemployment benefit rights
- Death of your spouse or civil partner
- Disability (you, your children, your spouse or civil partner)
If you pass away, the plan would be closed. The savings accumulated should be distributed to your heirs or the beneficiaries you have designated in the contract, either as a lump sum or as an annuity.
If it is a plan opened in the form of a securities account, the savings would be included in the estate.
Once retired, your retirement savings plan capital is retrievable either as an annuity or as a lump sum (in full or in part), at your discretion.
From a tax perspective, it is not advisable to withdraw the entire amount at once because this capital would be included in your taxable income in addition to your retirement pension, thereby increasing your tax liability.
Retirement Savings Plan or Life Insurance?
- If you want to reduce your taxes, only the PER will allow you to do so, unlike life insurance.
- Voluntary contributions to a PER are deductible from taxable income (10% of the annual Social Security ceiling).
- The PER and life insurance are almost equivalent in terms of profitability, but since there are no social security contributions with the PER, it’s more advantageous.
- With life insurance, you can withdraw your money at any time without justification, unlike the PER. If you invest money in this contract, it should be for the long term (retirement), even though as seen previously, there are « exemptions » to unlock money from your PER under certain conditions.
You can absolutely open a PER and a life insurance, contact us to make the right choice according to your current situation.
Retirement savings plan, for whom?
The PER is therefore relevant and suitable for individuals paying taxes and wishing to deduct their taxes while investing a portion of their savings.
If you do not pay taxes, it is better to open a life insurance policy, as you will be able to withdraw money from your contract whenever you wish. With the same profitability rates as a PER, there would be little interest for you to open a PER if you are not taxable.
Ask for advice
Form to be called back quickly. Open an account in France only.
Phone:
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Opening hours :
Monday 2pm – 6pm
Tuesday - Friday : 9am - 12am & 2pm - 7pm
Saturday : 9am - 12am
Sunday : Closed
Why subscribe to an Allianz "PER Horizon" contract?
A client portal available 24/7.
Access and modify the information of your retirement savings plan on your Allianz account in real-time (allocation, beneficiaries, make and manage your contributions, view the amount of savings accumulated...)
An expert team ready to advise you
Call us or fill out a form for a prompt callback. We will address your questions regarding the PER.
Flexible or regular contributions
Starting from €50/month, you can open an account or decide to deposit a flexible amount whenever you want.
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