The Plan Epargne Retraite (PER) is a long-term savings solution designed to help you prepare for retirement with peace of mind. By allowing you to build up savings in a flexible and advantageous way, the PER is an essential tool for securing your financial future. Whether you’re at the start of your career or already retired, understanding and using the PER effectively can significantly improve your quality of life during those golden years. In this article, we take you through the benefits of opening a PER when you retire, the eligibility requirements, and the best strategies for optimising your savings.
Why open a PER when you retire?
Save on tax
Opening a PER when you retire offers attractive tax benefits. Payments made into your PER can reduce your tax base, generating significant tax savings. This is a particularly attractive feature for retirees looking to optimise their tax situation.
Flexible withdrawals
A key feature of the PER is its great withdrawal flexibility. When you retire, you can choose the ideal time to start drawing on your savings, either as an annuity or as a lump sum, depending on your needs and life plans. This flexibility allows you to tailor your income to your other retirement sources and expenses.
Benefits for the family
The PER is also a valuable tool for passing on assets. In the event of death, the savings built up can be passed on to your loved ones under advantageous tax conditions compared with other financial investments. This makes it a strategic option for those wishing to prepare their family’s financial future.
Investment choices
With a PER, you have access to a wide range of investment options, from the most secure to the most dynamic, allowing you to personalise your savings strategy according to your risk profile and long-term objectives. This diversity helps optimise the return on your savings over the long term.
Who can open a PER?
Contrary to popular belief, there is no age limit for subscribing to a PER. Whether you are employed, self-employed or already retired, you can open a PER and take advantage of its benefits. The flexibility of the PER makes it accessible to everyone, offering an equitable opportunity to prepare for retirement, whatever your professional situation or age. This universality underlines the importance of the PER as a retirement preparation tool tailored to each individual.
How do I open a PER when I’m retired?
Opening a PER at retirement is a simple process that is accessible to everyone, but there are a few conditions and steps that need to be followed to ensure that you make the choice that is best suited to your situation.
Conditions to be met
To open a PER when you are retired, you must :
- You must be over 18.
- Reside in France for tax purposes.
- Choose between an individual PER, available to everyone, or a company PER, if you continue to work.
Until what age to take out
- There is no maximum age for subscribing to a PER, making this savings product particularly flexible and inclusive for retired people.
Comparison of PER offers
When opening a PER, it is crucial to :
- Compare the management and payment costs of different contracts.
- Evaluate the investment options on offer and their past performance.
- Consider the quality of customer service and access to personalised advice.
Transferring an existing PER
If you already have a PER and want to change it, you can :
- Transfer to a new PER offering better conditions.
- Compare transfer costs and any benefits offered by the new provider.
How do you manage your PER when you retire?
Managing your RSP at retirement should be tailored to your financial objectives and personal circumstances.
Appropriate investment strategies
- Reassess your risk profile regularly and adjust your asset allocation accordingly.
- Consider the time horizon until your retirement when choosing between more or less risky investments.
Tracking age and time remaining
- Adapt your investment strategy as you get older, favouring less volatile options as you approach retirement.
Investing ethically with ESG
- Explore responsible investment options (Environment, Social, Governance) to combine financial performance and positive impact.
When and how can I use my PER when I retire?
Your PER gives you great flexibility as to when and how you benefit from your savings.
Withdrawal options
- When you retire, you can choose to receive your savings in the form of a life annuity or a lump sum, in full or in part.
- The decision depends on your income requirements, your tax situation and your personal plans.
Unlocking a PER
The PER allows early release of savings in certain exceptional cases, such as :
- Buying your principal residence.
- Disability of the planholder, their spouse or children.
- The death of a spouse or PACS partner.
- Over-indebtedness.
Tips and mistakes to avoid
The decision to open a PER when you retire needs to be carefully thought through. Here are some essential tips and common mistakes to avoid in order to optimise your savings.
Don’t underestimate your needs
- Evaluate your financial needs at retirement: Consider your current expenses, future projects and possible health expenses.
- Plan for different scenarios: Anticipate possible changes in your financial or family situation.
Keeping your PER up to date
- Regular review: As your personal situation and tax laws change, it’s crucial to reassess your plan regularly.
- Adjust your asset allocation: As the market fluctuates and your personal situation changes, adjust your investment allocation.
General advice
- Diversify your investments to reduce risk.
- Avoid early withdrawals, except when necessary, so as not to compromise the long-term objective of your savings.
Conclusion
Opening a PER when you retire is a sound financial strategy for several reasons. Not only does it allow you to continue to benefit from tax advantages, but it also offers incomparable flexibility in terms of managing and using your savings. Whether you want to optimise your retirement income, prepare for the transfer of your assets, or simply invest ethically and responsibly, the PER is a suitable savings solution.
By following the advice shared in this article and avoiding common mistakes, you can maximise the benefits of your RSP at retirement. The key is careful planning, a thorough knowledge of your options, and active management of your savings.
We hope this guide has provided you with the information you need to make an informed decision about your retirement savings. Opening an RSP at retirement is a process that deserves consideration and planning. Don’t hesitate to consult a financial adviser for a personalised strategy tailored to your unique situation.
FAQ
Who can open a PER?
Anyone of any age, including pensioners, can open a PER. There are no age or professional status restrictions.
Is it possible to continue paying into a PER after retirement?
Yes, you can continue to make payments into your PER after you retire, thereby benefiting from tax deductions.
What are the conditions for early release?
In addition to the purchase of a principal residence, invalidity, the death of a spouse or over-indebtedness are valid reasons for early release.
At what age can you take out a PER?
There is no maximum age for subscribing to a PER, offering great flexibility when it comes to planning your retirement.
