The highest taxed taxpayers have understood that the Retirement Savings Plan (PER), the Swiss army knife of long-term savings with its euro fund and its units of account, presents numerous tax advantages. Collection is accelerating on this product created by the Pacte law in 2019 and the outstanding amount is approaching 120 billion euros.
First of its advantages: the tax deduction of payments from income. You can find the amount of your personalized deduction limit on your tax notice for 2025. To be done before December 31 in principle, but don’t delay because some insurers could close their doors before Christmas.
The more you are taxed, the more effective the tax deduction is. “To take full advantage of the tax deduction on payments, it is recommended to be at least taxed in the marginal slice tax at 30%whose threshold starts at 29,315 euros for a single with a share», Indicates Frédéric Largeron, head of wealth banking at SG. These savings must also be able to be blocked until retirement (excluding life accidents or purchase of the main residence). “We discuss with our customers to verify that it is in their interest to subscribe, particularly for those who earn less than 60,000 euros per year», Indicates Aymeric Richard, director of Chartrons Patrimoine.
PER: advantages compared to life insurance
In return for the entry tax deductionwithdrawals or annuities will be more strongly imposed on exit. The system will therefore be more effective for those whose marginal tax rate will decrease in retirement. Example, a 45-year-old saver taxed at 30% pays 10,000 euros per year for twenty years. He benefits from a deduction from his taxable income of 30% (i.e. 3,000 euros) which reduces his annual savings effort to 7,000 euros per year, Aymeric Richard calculates, or 140,000 euros in 20 years.
Second advantage, inheritance, of this product created in 2019 by law: “the benefit of the tax saving is not not taken back by the tax authorities in the event of transmission upon the death of the holder to his heirs and the sums will then escape social security contributions. THE PER beat thelife insurance on these two points» underlines Gilles Belloir. In fact, social security contributions are not taken over time on products dedicated to retirement but only during withdrawals or their transformation into an annuity unlike euro life insurance funds.
Increase in social security contributions
However “the social security financing bill (PLFSS) recorded the increase in the CSG of 1.4%as a result of which social security contributions will increase from 17.2% to 18.6%, including 10.6% compared to 9.2% under the CSG», Specifies Benoît Berchebru, Group Wealth Engineering Director, Astoria Finance. “Retirement products are no exception, unlike life insurance.“.
On the other hand, regarding the finance bill (PLF), nothing has yet been acted upon to date, as the National Assembly and the Senate have not yet agreed. Both Chambers voted separately to remove the tax advantage for subscribing to PERs for those over 70 in order to “reorient the retirement savings plan (PER) system towards the priority objective of financing retirement» as the Senate specifies, and both wanted increase the tax-exempt balance going back five years instead of three years. In the absence of agreement between the two chambers on the PLF, the special law that the government will present this Monday, December 22 will allow to ensure the continuity of tax collection, without instituting new taxes.
