The success of the Retirement Savings Plan (PER) is confirmed year after year. According to the latest figures published on May 17 by the Ministry of the Economy, outstanding amounts reached 150.4 billion euros as of December 31, 2025compared to around 124 billion a year earlier. In detail, individual PERs alone account for 88.5 billion euros in outstandings, up 21% over one year. Collective corporate PERs also increased significantly with 33.86 billion euros (+22%), while mandatory PERs reached 28.04 billion euros (+13%).
Created by the Pacte law in 2019, the PER has gradually established itself as one of the main long-term savings products in France. “There is a favorable context for this type of product. Today we have a lot of anxiety about retirement. Approximately 72% of workers fear that their pension is not sufficient to live well in retirement »analyzes Philippe Crevel, economist and director of the Cercle de l’Epargne.
Why is the PER so attractive to the French?
The demographic context and the multiple pension reforms play a central role in this enthusiasm. The aging of the population, the gradual increase in the legal age and concerns about the future level of pensions are pushing many workers to build up additional savings. The PER responds precisely to this logic since it allows you to save during your working life to have capital or an annuity at the time of retirement.
The product also has several advantages that appeal to savers. Unlike certain old retirement systems considered rigid, the PER offers a certain flexibility with the possibility of taking out either an annuity or capital. “And there is also a tax deduction upon entry”adds Philippe Crevel. This combination largely explains why the product quickly established itself in the French savings landscape.
A particularly attractive tax advantage for high incomes
The main driver of the success of the PER remains its tax advantage. Payments made into the plan are tax deductible, within certain limits. The higher the taxpayer is taxed, the greater the tax gain becomes. “It will be better for someone taxed at 45% than for someone taxed at 14%”summarizes Philippe Crevel.
Thus, a highly taxed taxpayer can significantly reduce his tax bill thanks to payments made to his PER. This mechanism makes the product particularly attractive for executives and high incomes, even if the profile of savers gradually tends to diversify. “ The profile of holders is getting younger compared to what we observed a few years ago”observes the economist. Working people are therefore starting to prepare for their retirement earlier and earlier, sometimes as early as their thirties.
PER and life insurance: increasingly strong competition
The PER is often compared to life insurance, another favorite investment of the French. The two products share several common characteristics: possibility of investing in various media, preparation of long-term projects and tax advantages. “PER and life insurance are quite close”believes Philippe Crevel.
But life insurance retains a much greater weight in the assets of French households. Outstanding amounts today exceed 2,140 billion euroscompared to just over 150 billion for the PER. “The PER still remains a small product compared to life insurance, but it is growing rapidly”specifies the expert. Some savers also prefer life insurance for its greater flexibility, in particular because the funds remain available at any time, unlike PER which is in principle blocked until retirement.
Mistakes to avoid before opening a PER
Despite its success, the PER is not without its flaws. Several points deserve particular attention before subscribing. The first concerns fees, which are sometimes high depending on the contracts: entry fees, management fees or even arbitrage fees can reduce the overall performance of the investment. “You have to pay attention to fees and negotiate them”insists Philippe Crevel.
Another important point: exit taxation. Many savers favor a capital outflow, but this can result in significant taxation if the sums are withdrawn in one go.. “Capital is reflected in income tax, which can significantly increase taxation”, recalls the economist. To limit this impact, it recommends to spread withdrawals over several years in order to avoid suddenly changing tax brackets.
Savings theoretically blocked until retirement
The PER remains above all a retirement savings product. In principle, the amounts paid remain blocked until retirement. However, there are some cases of early release:
- purchase of the main residence,
- disability,
- death of spouse,
- overindebtedness
- cessation of activity after judicial liquidation.
This relative rigidity explains why some French people are still hesitant to invest a significant part of their savings there. But for those who wish to prepare for their retirement in the long term, the PER now appears to be an essential tool. “It’s a product that is gradually becoming established », Estimates Philippe Crevel. Even if its weight remains limited compared to life insurance, its rapid growth confirms the growing interest of the French in retirement savings solutions.
