Succession: “Retirement, should I open a per to lower my taxes?”

A capital reader, already retired, wishes to open a retirement savings plan (PER) in order to reduce his income tax. He wonders about the relevance of this strategy, and whether or not to take out a bond fund dated within this contract.

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Christian asks us the following question: “Hello, I am retired and I wish to tax by opening a Retirement savings plan (PER)knowing that I was not closing it before my death. I also wish to house a dated bond fund there. Is this a good idea right now? What do you advise me? ” Hello Christian, and thank you for your question, which allows you to examine the interest of a retirement per, both from a tax point of view and from the transmission – because you obviously do not wish to draw from before your death. Contrary to popular belief, it is quite possible to open a permit once. But several elements must be taken into account to assess the relevance of this choice.

Retired, be careful after 70 years

First of all, to open a per, know that the acceptance conditions vary according to the insurers. Some contracts impose age limits: “Being retired is not a problem, but if Christian is over 70, you have to look at contract by contract, because the practice will be different depending on the insurersexplains Henri Réau, Director of Development at Placement-direct.fr. At Placement-direct.fr, we offer, for example, a contract which sets a limit to 70 years if retirement rights have been liquidated, to 75 years if the saver is still active, and another contract without age limit to subscribe to a per. “

Then, concerning the retired tax advantage, take into account that the tax deduction ceiling to which you will be entitled will be limited. In principle, it is possible to deduct from your taxable income the amount of payments made on its PER within the limit of 10% of its professional income. However, without activity income, it is a minimum deduction ceiling that applies. For example, this year, you will not be able to deduct more than 4,637 euros, even if you pay more on your PER. However, if you were not yet retired last year, “You can still use the unused deduction ceilings of the last three years”specifies Henri Réau.

A dated, still interesting bond fund?

Finally, your wish to invest in a bond fund dated within the permanent deserves. First, you should know that by default, the PERs impose a management “piloted by horizon” with which management is entrusted to the insurer. To choose your own investment media -as a dated bond fund -, you will have to opt for free management. Then, these funds – which aim to keep a basket of bonds until their maturity – certainly offer visibility on the yield to be hoped for (between 3% and 4% currently), but are less interesting than there is One year, given the drop in guiding rates. “In free management, dated funds still have a little interest, but we arrive at the end. The rates are less interesting than a year ago ”underlines Henri Réau.

But if your objective is to transmit your capital by taking little risk, and with a return slightly higher than that of funds in euros, this option may well be envisaged. And if you want a little more performance, you will have to choose a contract offering a range of account units (UC), invested in bond funds, stocks, real estate, etc. In order not to take any risks, however, it will be necessary to favor a contract allowing to subscribe to 100% in euros funds, the investment media with guaranteed capital.

Be careful to adjust your liquidation date

In any case, you will have to adjust your investment horizon to your project. When subscribing to a PER, including retirement, the forecast age of liquidation must be declared. “You have to adjust this age to have a horizon that allows you to have an aligned risk taking on its objectives”explains Henri Réau. Thus, if you want to invest more risky in actions, it is advisable to have at least ten years before you, so as not to risk having to transmit your capital at a time when the markets are at their lowest. In this case, it is better to opt for the management controlled by Horizon, with which the insurer dismisses the most risky assets (shares, real estate) as you get closer to the date of liquidation.

Last element to monitor: the possibility of an evolution of the law which would impose an age of compulsory liquidation of the PER, or an age limit of subscription, as was mentioned in a parliamentary report last fall. “It is not impossible that reform projects come back to the carpet”warns Henri Réau.

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