For many French people, retirement is synonymous with a drop in income. This is why security and financial autonomy are among their main concerns today. It is therefore essential to prevent this decline in purchasing power by preparing for retirement as early as possible and choosing the right financial investments.
Sicavonline, investment services provider, insurance broker and intermediary in banking operations, a 100% subsidiary of Ageas France, presents four investment solutions combining potential returns but which are not without risks.
SCPI: invest indirectly in real estate without resource or management constraints
Investing in real estate investment trusts (SCPIs) allows savers to access real estate and obtain potential income thanks to the rents generated by the rental of real estate without having to worry about the management of these goods which are managed by management companies. Savers buy SCPI shares which potentially allow them to receive dividends after a certain period (three to six months depending on the SCPI).
Today, holding SCPI shares has its advantages. Investing in SCPI shares allows you to diversify your savings, whether geographically or in terms of the type of property acquired; SCPIs can invest in office buildings, commercial premises or retirement homes.
The collection of earnings is usually quarterly, but it can also be monthly or semi-annually (depending on the chosen SCPI).
Nevertheless, SCPI shares are long-term investment vehicles and must be acquired with a view to diversifying your assets. Like any investment, real estate presents risks (lack of return or loss of value). The income that will eventually be paid to you depends on the rental conditions of the buildings. In addition, neither the capital invested nor the profitability objective is guaranteed.
The PER, an advantageous solution especially in terms of taxation
Entirely focused on preparing for retirement, the PER (Retirement Savings Plan) was created with the entry into force of the Pacte law in 2019. It can be taken out individually or collectively and allows you to invest in multiple media. savings products. Its major advantage is fiscal. Indeed, the sums paid annually on the PER are partially deductible from income, within the legal limits.
Just like life insurance, it is possible for the saver to withdraw from his contract in the form of an annuity or capital. But you should know that the savings are blocked until retirement except in exceptional cases of redemption as limited by law. In addition, taxation in the event of death is less advantageous than that of conventional life insurance. The saver can only recover the sums invested when he definitively leaves working life.
The PEA, an interesting product for retirement
The PEA (Plan epargne en actions) is a long-term savings product open to all people who wish to invest in the stock market. It makes it possible to invest in French and European companies of all sizes while benefiting from tax advantages.
These tax benefits depend on the number of years the PEA has been held. The capital held within the PEA can be converted into tax-exempt life annuities after five years of ownership of the plan. However, they are subject to social security contributions up to 17.2% regardless of the date of withdrawal.
Life insurance, the preferred investment of the French
This solution allows savers to invest money over the medium or long term. It offers the possibility of subscribing to a multitude of financial products such as collective investment schemes, equity funds, bond funds, mixed funds, ETFs or even SCPIs which can vary upwards or downwards or even euro funds. Thanks to this diversity of supports, everyone can set up the life insurance that corresponds to their personal situation, their investor profile, their objectives and their appetite for risk.
Another major benefit of life insurance is the availability of capital. It is possible to make withdrawals at any time, under certain conditions. It should be noted that certain life insurance contracts allow an exit in life annuity, that is to say to transform the accumulated capital into a life annuity. Subscribers can choose to manage their media portfolio themselves, this is “free management”, or to delegate management.
Content offered by SICAVONLINE
The editorial staff of Boursier.com did not participate in the creation of this content.