Launched 4 years ago, the PER is finding more and more fans among savers. Are you wondering if the individual PER, replacing the Perp and Madelin contracts, is right for you? It all depends on your goal.
The creation of the Retirement Savings Plan (PER) had a major ambition: to harmonize and simplify the very heterogeneous landscape of retirement savings. No more Perp, Madelin or other Perco: from now on, the only pure retirement savings product that you can open is called the PER. But be careful, two large families of PERs coexist: firstly the PERs collectivesaccessible via your employer; secondly the PER individualthe opening of which depends solely on the initiative of the saver.
2023 tax notice: should you open a retirement savings plan to avoid taxes?
If you are mainly looking to reduce your taxes
Like the Perp or the Madelin contract until now, the individual PER is first and foremost a tax exemption investment. Because each payment made to an individual PER is deductible from taxable income, within the limit of an annual ceiling. By reducing your professional activity income, you automatically lower your income tax.
The annual deduction ceiling identical to that in force for Perp is personalized depending on the situation of each tax household. It is equivalent 10% of your activity income of the year goes by, with a maximum ceiling of 32909 euros for 2023 (for employees). But if you do not use this ceiling one year, the amount is carried over to the following three years.
The simplest way to find out your household’s retirement savings limit? Look at your 2023 tax notice, additional information section. The tax authorities specify the ceiling for contributions paid in 2023, therefore for payments made until December 31. If the ceiling does not appear on your notice, the tax authorities will calculate it for you on request, via your personalized messaging on impots.gouv.fr. Important clarification for the self-employed: the annual PER ceiling is higher for self-employed workers, at the same level as the Madelin contract (1).
Attention. The presence of the retirement savings ceiling mention on your tax notice does not necessarily mean that the deduction is interesting for you! First of all, a tax deduction is obviously only of interest to taxpayers who have tax to pay. Then, the PER deduction is generally only recommended for households appearing in the upper income tax brackets: those whose marginal tax rate (TMI), the rate applied to the highest stratum of your income , is at least 30%.
| Income bracket by tax share | Rate applicable for the tranche |
|---|---|
| Until 11316 | 0% |
| From 11317 28852 | 11% |
| From 28853 82499 | 30% |
| From 82500 177444 | 41% |
| More than 177444 | 45% |
Scale estimated based on calculations carried out by MoneyVox. The revalued scale will only be known with the finance law for 2024.
Example, for a single person with 50,000 euros of taxable income in 2023, appearing in the 30% bracket. If he pays 3000 euros into a PER, he theoretically saves 900 euros in tax (30% of 3000 euros) since it lowers its taxable income by 3000 euros. The tax gain would clearly be less if it appeared in the 11% bracket: 330 euros for the same payment of 3000 euros. And it would be much higher in the 45% bracket: 1350 euros of potential gain with this same payment of 3000 euros.
Also be aware that this savings having been the subject of a deduction at the time of payment will be imposes exit, retirement age. Deducting payments therefore amounts to taking a tax gamble: reducing your tax today, during working life, when you are theoretically taxed the most; to gradually withdraw this capital in retirement, when you will be less heavily taxed.
Life insurance and PER: these new things coming for your savings
If you are mainly looking to save for retirement
The main reason for opening and paying into a PER is therefore to reduce taxable income, during working life. In addition, the great advantage of the individual PER compared to the old generation of retirement savings investments (Perp, Madelin, etc.) is its flexibility when it comes time to retire: you can either withdraw all the savings in capital (in one go, or over several years to limit taxation), or opt for life annuityor both.
The originality of the PER also comes from its flexibility at entry: you can choose to waive deductibility payments, with a pure retirement savings perspective. A low or low tax household may therefore have an interest in subscribing to a PER, provided that you expressly request to waive deducting your payment from your banker, insurer or financial advisor. In this case taxation will be lighter exit, retirement age.
- If you choose the annuitythe reduction to which you will be entitled will be much higher than that which applies if you deduct your payments (2).
- If you choose capital outflowall amounts you have paid will be tax exemptions, only earnings subject to flat tax. Whereas by deducting the payments, all the sums collected are subject to income tax (and the winnings to flat tax).
Does this flexibility make the PER a true consumer product, whatever your tax level? If you are lightly taxed and want to save to prepare for your retirement, the PER is a suitable investment but not necessarily a better investment than life insurance. A PER and life insurance most often have similar characteristics, in terms of fees, financial support and management options.
However, life insurance has the advantage, with respect to the PER, of offering more freedom: if necessary before retirement, you can draw on your life insurance, whereas only the purchase of the main residence or a life accident (disability, over-indebtedness, etc.) allows you to release your savings before retirement to a PER. Something to keep in mind before subscribing!
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(1) Up to 10% of the taxable profit, to which is added 15% of the fraction of the taxable profit between one and eight PASS 2023.
(2) In the event of a deduction upon entry, the free life annuity system applies, the taxation being equivalent to that of earned income. Without deduction upon entry, the onerous annuity regime applies, much more attractive, with only 40% of the annuity being taxed if you claim the annuity between the ages of 60 and 69.