RETIREMENT SAVINGS (PERIN)

The Plan Épargne Retraite individuel (PERin) is one of the most powerful wealth management tools available in France today. It allows you to build long-term retirement savings whilst benefiting from an immediate tax reduction each year. The higher your marginal tax rate, the more effective the PERin, and from a marginal rate of 30%, it becomes a particularly compelling addition to your financial planning strategy.

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1) Tax deduction on contributions

During the savings phase, the PERin holder can contribute up to 10% of their annual income, with these contributions deducted directly from their taxable income. This automatically generates a tax saving the following year, equivalent to their marginal tax rate. The higher the income, the greater the tax saving, up to 41% or 45% for those in the highest tax brackets. Self-employed individuals (TNS) also benefit from additional contribution allowances, which we can review together based on your situation.

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2) Lock-up period and early withdrawal options

Funds held in a PERin are locked until retirement. However, the law provides for several early withdrawal exceptions.

In the event of a life accident (death of spouse or civil partner, disability, over-indebtedness, expiry of unemployment benefit rights, judicial liquidation), the PERin can be withdrawn free of tax, with the exception of social charges on any gains. This provision gives the PERin a valuable insurance dimension that is often overlooked.

One of the key innovations of the PERin is the possibility of early withdrawal in the event of a primary residence purchase. In this case, the amounts withdrawn that previously benefited from a tax deduction are reintegrated into the holder's taxable income, while any gains are taxed at the flat rate (PFU) of 30%. This option is best viewed as a safety valve if needed, rather than a primary objective.

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3) Management options

Funds invested in a PERin can be managed in two ways: through discretionary management, which offers three predefined risk profiles (cautious, balanced or dynamic) with a gradual shift towards safer investments as retirement approaches, or through self-directed management, which allows complete freedom in building a personalised allocation. At Optimal Conseil Patrimoine, we most often favour self-directed management with ETF-based allocations, allowing us to build a truly personalised strategy tailored to your situation, whilst maximising the net performance of your retirement savings.

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4) Capital withdrawal at retirement

One of the key innovations of the PERin compared to previous retirement savings schemes (PERP, Madelin) is the ability to withdraw all or part of your savings as a lump sum at retirement, rather than being limited to a lifetime annuity.

Amounts corresponding to contributions that previously benefited from a tax deduction are reintegrated into the holder's taxable income at the time of withdrawal, while any gains are taxed at the flat rate (PFU) of 30%. The overall tax saving can be significant, since in most cases the marginal tax rate will be lower in retirement than during working life. It is also possible to spread withdrawals over time to further optimise the tax position.

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Our support

The PERin is a powerful financial planning tool, but one that requires a personalised approach taking into account a number of parameters: marginal tax rate, specific allowances for self-employed individuals, the possibility of carrying forward unused allowances from the previous three years, and changes in the holder's personal circumstances over time. At Optimal Conseil Patrimoine, we are committed to supporting you at every stage of your financial journey, to ensure you make the most of your PERin.