Here are the tax benefits offered by Retirement Savings Scheme (PER).

Four years after its inception, the new Retirement Savings Scheme (PER) has seen real deployment. The system, according to figures finalized at the end of 2023, surpassed 9.8 million holders with outstanding assets of up to 95 billion euros. That is why there is so much interest from the French.

Launched in October 2019, the deployment of the new Retirement Savings Scheme (PER) has proved to be a huge success after four years. The Ministry of Economy, Finance and Industrial and Digital Sovereignty reports standardized deployment based on data made available by all professional federations Marketing PER.

“Over 9.8 million new PERs opened”, it is asserted. Arrears formed on this PER “reach more than 95 billion euros”It was noted in a press release issued.“This extraordinary dynamic concerns corporate PER, both collective (21.8 billion euros outstanding) and mandatory (18.4 billion euros outstanding), as well as individual PER (55.2 billion euros). ‘Euros outstanding and over 3.4 million holders)’It is detailed.

The Ministry of Economy clarifies that “This growth does not result only from the transfer of old products: slightly less than one of the two individual PERs corresponds to the creation of new contracts and is not the result of transfers”. It is useful to remember that the PACTE law created a new PER with the aim of developing retirement savings in France. “More attractive to savers and better adapted to the credit needs of businesses”.

What you need to know about PER

PER is a new retirement savings product. It comes in 3 forms: an individual PER, and two corporate PERs. Personal PER succeeds the popular retirement savings plan and Madeleine Agreement

: Retirement savings contracts for self-employed workers.

The collective corporate PER succeeds the collective retirement savings plan. Mandatory Company PER succeeds A group life insurance contract taken out by a company for the benefit of some of its employees. You can transfer savings from already opened old plan to your new PER.

Tax benefits

The success of the new PER, in fact, lies in the tax benefits it offers. In fact, the amount paid in an individual’s PER during a year is deductible from the taxable income for that year, within the aggregate limit prescribed for each member of the tax family.

For an employee, the ceiling for deduction of superannuation contribution is 10 % Wages and salaries declared on your 2023 tax return indicate administration. The ceiling amount is minimum 4,399 euros and a maximum of 37,094 euros.

Note that the ceiling is increased by the deduction ceiling (or fraction of the ceiling) that was not used during the previous 3 years. For example, if you didn’t use your full deduction limit in 2023, you can use the remainder to increase your deduction limit in 2024. And if you don’t deduct these payments from your taxable income, you’ll benefit from personal PER exit taxes.