Still popular in 2024, the Retirement Savings Plan (PER) allows you to build up beneficial capital for retirement. This is why it continues to gain popularity among investors, especially due to its flexibility and tax benefits. While many financial institutions offer this savings solution, choosing the “best” PER remains difficult. It all depends on criteria linked to each person’s financial objectives and personal preferences. We’ll cover everything you need to know to pick the best PER in 2024.
What is PER?
Rule n°1: Before investing, always make sure to inform yourself about the savings product you are considering.
Introduced by the PACTE law in 2019, PER aims to make retirement savings products more attractive. It replaces older devices such as PERP, Madelin or PERCO, offering greater flexibility.
PER was designed to provide an additional source of income in retirement, in addition to the mandatory schemes. If it still appreciates in 2024, it is especially in terms of capital exit facilities and tax deductions. To know more about the best PER available in the market, consult the 2024 ranking with 2023 returns.
Subscribing to PER in 2024: What criteria should be considered?
To select the best PER in 2024, several criteria are required:
- Cost: They directly affect the profitability of your savings. So compare the fees for payment, administration, arbitration etc. Penalty fee should also be considered in case of early exit.
- Output options: With the recent revision of this financial investment solution, PER authorizes the outflow of capital upon retirement (full or partial). Note the flexibility included in the notional contract!
- Investment Management: Free, managed or mandated, the choice of management method should match your ability to manage your investments.
- Yield: It is tempting to rely on previous years performance before investing. But these do not always guarantee future returns! Give a judicious analysis on the evolution of past performance.
- Investment Options: The variety of investment options (euro funds, units of account, real estate, etc.) allows you to adapt the PER to your objectives.
- Customer Service: The quality of customer service and access to personalized advice can greatly influence your retirement savings experience.
- Tax Benefits: Payments made to your PER are deductible from your taxable income up to certain limits*.
* How is his ceiling calculated?
The deduction ceiling is reassessed annually and is based on two criteria:
- The professional income of the previous year, where the ceiling is usually set at 10% of this income within the legal maximum limit,
- The Aggregate investment limitWhich takes into account payments in other retirement savings plans.
It is possible to carry forward the unused ceiling over three years to increase the tax deduction in the future. Also note that specific rules apply to self-employed workers (TNS) regarding deduction ceiling.
What is the best PER in 2024? Profile question
Strictly speaking, there is no “best” PER. The choice will depend on your personal situation, your retirement objectives and your investor profile.
Certainly, savvy investors will choose PER with Managed management focuses on safe investments such as Euro funds or bonds. This solution, above all, guarantees safety of capital, but at the same time gives a moderate return.
More experienced investors will prefer PER Allowance of large allocations in units of account, with a variety of assets (stocks, bonds, real estate). For diversification and maximization of returns over the long term, this PER will often be with management under the mandate.
Finally, those who wish to combine the benefits of PER and flexibility will prefer a contract that offers flexible payment options, early exit possibilities (for example, for the purchase of a principal residence), and an intuitive user interface. With simple management options, you no longer need to be an investment expert to manage your wealth.
Before starting, you can consult PER comparisons online or stay with a financial advisor for a personalized analysis of your situation.
Camille is part of the Nextnews.fr editorial team. She is interested in many topics and loves to write to share this knowledge as well as news with our readers.
