Launched two years ago, the PER has met with unexpected success, since 4.3 million French people have already benefited from it. To respond to the criticisms of some, and for more transparency on the inherent costs, the players will set up a standard document to better understand the product.
In two years, the retirement savings plan has met with the support of the French, since 4.3 million of them have chosen this long-term savings system. Resulting from the reform of retirement savings provided for by the law of May 22, 2019 relating to the growth and transformation of companies known as the Pacte law, it exceeds all government distribution forecasts.
Both so that the French can improve their retirement and to meet the financing needs of the French economy, it benefits from a very strong attractiveness, according to the Minister of the Economy, Finance and Recovery, Bruno The Mayor, on the ministry’s website. However, some consumers find that the costs incurred are not clear and legible enough. But those who plan to take a PER soon should be reassured.
More transparency on PER fees from 1 June 2022
Under the impetus of the government, professionals will move towards greater transparency. From June 1, 2022, a standard table grouping the costs by category will be available online on the site of each PER producer.
This will also be valid for life insurance (the number one investment of the French).
This improved transparency should foster greater competition, in order to further diversify the offers for savers.
The pre-contractual and annual information will be sent to the saver, and all the costs incurred by each unit of account or each asset will be displayed, in terms of pre-contractual information, from July 1, 2022. For the annual information campaign of the 2022 financial year, this will be done from 2023, indicates the website of the Ministry of Finance.
PER: a simple and advantageous product
The retirement savings plan allows you to accumulate savings to supplement your income once you retire. This can be done either in the form of an annuity or in the form of capital: the saver decides what he prefers when he unlocks the plan.
Overall, the product is both simple, standardized and advantageous in terms of tax and heritage.
In principle, savings invested in a PER are unavailable until the day of retirement, unlike a life insurance contract which allows you to have your savings at any time. This is the counterpart of the tax benefit. However, in the event of a serious event affecting the existence of the subscriber, the law provides for cases of early exit from savings: for example if the spouse or PACS partner dies, or in the event of over-indebtedness, or in the event of expiry of the rights to unemployment benefits.
A PER is also a very good tax optimization tool. The tax reduction obtained makes it possible to reduce its real savings effort or to shift it from year to year.
Retirement: a marketplace to find your PER
A complete asset audit allows you to define your investor profile, estimate your future retirement, and define a tailor-made project.
Savers who wish can take their PER on NetInvestissement, a marketplace for investments and wealth management advice. It provides free access to all the investments on the market, free of charge or additional cost, as well as a set of simple tools to help you better manage your assets.
Thus, individuals have access to all the available offer in terms of real estate, SCPIs, life insurance, the stock market, savings and retirement.