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Many French people want to maintain their lifestyle once they retire. To help them realize this wish, several tools are available to them. Among these are life insurance and PER. Which is the most advantageous?
The advantages of life insurance
About 2,000 billion euros in savings have been accumulated by French households through life insurance. The advantage of this option is that at any time, funds deposited can be recovered. At the fiscal level, you have the possibility of benefiting from an annual allowance eight years after having signed a contract. This reduction is made on the gains obtained. We are talking about 4,600 euros for one person and 9,200 euros for a couple. In addition, only the interest portion is taxed when it exceeds these amounts.
The advantages of PER
The PER or Retirement Savings Product is very recent. It was created in October 2019 and already 210,000 contracts have been opened. They correspond to a over 2 billion euros outstanding. The concept conveyed by the PER is quite simple. The taxpayer agrees to review his immediate purchasing power in order to build up considerable savings upon retirement. His purchasing power is therefore deferred. All payments made are deducted from deductible household income. However, this reduction cannot exceed 32,419 euros.
Which product should you set your sights on?
There is no mistaking it, life insurance is a great option for any taxpayer. It is to be preferred for any individual located in the bracket less than or equal to 11% IMR. The only drawback that could result from this comes from the fact that the latter can at any time ask to recover his money. He could therefore give him another destination other than maintaining a suitable lifestyle after retirement.
Both products still allow invest in equity UCITS, euro funds, ETFs and money market funds. However, PER seems the best option for any future retiree. The funds that are saved are blocked and are not unlocked until retirement time has arrived. In addition, their tax rate will not be very high. Indeed, the future retiree can easily save 1,500 euros when his tax rate is 30% or 2,250 euros when it is 45%.
In short, you have the choice between life insurance and PER for your retirement. The most advantageous is still the PER.
