In terms of savings, taking the lead can bring back big. This is particularly the case to prepare the deadlines which may seem very distant, such as retirement. And that is good, since the French seem to be done at this idea: according to the eleventh edition of the study “the French, savings and retirement”, conducted by AG2R La Mondiale, Amphitéa and the Savings Circle, 62% of French people consider that it is necessary to save for retirement before its 35th birthday.
A spirit of anticipation which is reflected in the success of a savings product dedicated to the preparation of retirement: the retirement savings plan (PER). Indeed, according to the “2025 barometer of savings in France and in regions” of Altaprofits, produced by IFOP, assets under 35 years of age are more seduced by this placement – 59% have already opened one, or declare that they intend to do so – that the average of the French, all ages combined (53%).
Final capital three times higher than starting at 45 years, six times higher than 55 years
But concretely, how much can it bring you in addition to starting to put aside so early for your old days? With the same savings effort, is the difference really significant starting at 30, 45 or 55? To illustrate this, let’s take the example of three savers who have the same investment horizon: a retirement at 65 years old. The first begins to save its 30th anniversary on a long -term savings product (life insurance or PER) with an initial payment of 5,000 euros, then 200 euros placed every month. Take two other savers who save the same amounts, but starting at 45 and 55.
Retired, the first – with behind him 35 years of savings – will have a capital of 272,560 euros. While starting at 45 years, 20 years of savings, the total will only be 100,635 euros (almost 3 times less), and finally 43,631 euros By starting at 55 years (more than 6 times less!). Of course, the duration of investment here has a great impact: the total payments reaches 89,000 euros starting at 30 years, compared to 53,000 to 45 years and 29,000 euros at 55 years. But this projection also grants a higher return to a savings started earlier: 6.5% yield per year up to 45 years, 5% between 45 and 55 years, and 3.5% after 55 years (with costs of 0.6% per year).
What is logical for Catherine Baudeneau, spokesperson and marketing director offer and communication from Altaprofits: “When the saver begins early, he has a long investment horizon, over 30 years. It can therefore take risks and seek more offensive investments to target yields over 6% annual. If he starts at 50 or 55 years old, it will be preferable that he secures his savings a little more, because he will not have time to allow a possible crisis; His investment will therefore report less.»»
To achieve the same result, an initial payment or a more substantial savings effort is necessary
Note that it is also on this principle that the management controlled by Horizon works, which is the default management of PERs: as you get closer to retirement, your insurer – to whom you delegate the management of your investment – will gradually reduce the exposure of your portfolio to risky assets (stocks, real estate, etc.), to focus on safer investments (States obligations, monetary funds, etc.) to lose all of your capital a few years from retirement.
Thus, to reach this same capital of 272,560 euros obtained by starting at 30 years, it will be necessary, at a more advanced age, either to increase its initial payment, or its regular payments. More specifically, at 45, it will either be necessary to make an initial payment of 88,000 euros, then regular payments of 200 euros, to mount monthly payments to 585 euros if the initial payment remains at 5,000 euros. At 55 years old, things get complicated, since the initial payment should then be 176,568 euros, with payments maintained at 200 euros, or increase them to 5,000 per month, to limit the initial payment remains at 5,000 euros.
