Thanks to its many advantages, the Retirement Savings Plan (PER) is beginning to make itself known and impose itself against the Livret A and life insurance. We explain to you why it is a good alternative.
The PER is recent. Created in France in October 2019, this financial product has already won over more than 6 million French people, who have invested nearly 70 billion euros in it. If this figure increases each year, the PER is still far behind life insurance and its 144 billion euros in assets at the end of 2022.
The PER indeed suffers from its name. Contrary to popular belief, this is a much more flexible investment than one might imagine, and it is not reserved for people over 50.
To introduce this little-known investment, the 100% online management company Yomoni reimburses you up to 500 euros in management fees for your PER. This offer is valid until April 30 with the code RETREAT.
How does a PER work?
At first glance, the term Retirement Savings Plan can scare away young working people, looking for a flexible investment that does not commit them for several decades. However, the PER is much less restrictive than one might imagine.
First of all, this placement is open to everyone, regardless of age, professional status (employee, self-employed, unemployed), or even income. At Yomoni, you can open a PER with a first payment of 1,000 euros and decide not to fund it for a while or to stop recurring payments at any time if necessary.
And as life is made up of unforeseen events, the PACTE law has provided for several cases of unblocking. You can therefore recover all or part of your funds when you buy your main residence, or even in the most difficult financial times such as:
- the expiry of your rights to unemployment insurance;
- the cessation of your self-employed activity following a judicial liquidation;
- a state of over-indebtedness;
- disability of the holder, his children, spouse or partner bound by a PACS;
- the death of the spouse or partner bound by a PACS.
The PER also has other advantages, particularly in terms of taxation, since all payments can be deducted from your taxable income. And in the event of succession, the beneficiaries benefit as a bonus from a preferential rate.
In any case, when you are retired, you receive your funds updated according to the rate of return of the PER since its opening. You can then opt for an immediate payment or in the form of an annuity, depending on your preferences.
PERs for each profile
Like life insurance and unlike the Livret A, the PER does not have a guaranteed interest rate fixed by the State. This investment product is available according to the desired level of risk (prudent, balanced or dynamic) and its performance is therefore not known in advance.
Since its launch in 2020, Yomoni’s “dynamic” PER has been able to achieve an annualized rate of return of 8.7%, well beyond the 3% of the Livret A. past do not prejudge those to come and that all these investment vehicles present a risk of capital loss.
Despite everything, you don’t need to be an expert in finance to subscribe to a PER. A few minutes are enough to open one from the mobile application or the Yomoni website. From the first steps, Yomoni accompanies you and invites you to answer a questionnaire to estimate your risk profile. Depending on the result obtained, all you have to do is:
- select the PER that suits you, i.e. cautious, balanced or dynamic;
- send your proof of identity and address online;
- make your first payment by bank transfer.
And that’s all ! Once your PER has been opened, you can follow its performance in real time from the Yomoni application available on Android and iOS and choose whether or not to make additional payments. These can be occasional or regular.
Fees among the lowest on the market
While Yomoni has a wide range of financial products, the French company is best known for its ultra-competitive prices. The fintech does not apply any entry, file, payment or arbitration fees and those relating to management are capped at 1.6%.
If you open a PER and pay 1,000 euros into it, you will therefore be charged a maximum of 16 euros, knowing that the less risky the investment, the lower the management fees. Yomoni’s digital solution is therefore as practical as it is affordable.
In addition, until April 30, 2023, for the very first opening of a PER at Yomoni, it will reimburse you up to 500 euros in management fees with the code RETRAITEZEN (offer subject to conditions).
*This investment presents a risk of capital loss
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This is content created by freelance writers within the Humanoid xp entity. Numerama’s editorial team did not participate in its creation. We are committed to our readers to ensure that this content is interesting, qualitative and corresponds to their interests.