this will change as of October 1st with the new PER (Retirement Savings Plan)

Specifically, the various existing retirement products – Perp, Perco, Madelin and Article 83 – will no longer be marketed from October 2020 even if payments on contracts already subscribed may continue. All will be gradually replaced by the PER which will consist of three separate compartments.

TO READ : New retirement savings plan (PER): will you be interested in emptying your life insurance to take advantage of the tax carrot?

The group retirement savings plan (called Percol) will relay the current Perco, the categorical retirement savings plan (Percat), mandatory plan for a category of employees, will replace Article 83, the individual retirement savings plan ( or Perin) will succeed the Perp and Madelin contracts (reserved for non-salaried workers).

Deductible payments from the tax base

Voluntary payments will be
all deductible from the income tax base (within the limit of
current ceilings). They can also be recovered for the acquisition of the
principal residence, early release case which is in addition to the
accidents in life (disability, death of spouse, expiry of insurance rights
unemployment, over-indebtedness), valid regardless of the origin of the sums.

At retirement, the saver may, for voluntary payments and those from employee savings, freely choose an exit annuity, capital or modulate both. Only the contributions of the Percat will be obligatorily to exit in annuity.

TO READ : Retirement: How to turn an investment into a life annuity?

Another flexibility: the sums placed within a Perin can easily be entrusted to new managers for a transfer cost limited to a maximum of 1% of outstandings (free for more than five years of detention). Finally, to ensure a better return on retirement savings, managed management, which consists of investing your savings according to your time horizon, will be applied by default.

A complicated tax system

On the other hand, taxation will be
always as complicated as it will depend on the origin of the sums saved
and the choice of exit, in annuity or in capital! Moreover, when you
benefit from a deduction of the sums paid, you will be taxed at the exit.

In the event of a capital outflow, your individual payments will be taxed on the progressive tax and capital gains scale, on the one-off lump sum. For an annuity exit, it is the pension plan that applies and the schedule of annuities for consideration for social security contributions. It will therefore be necessary to make your calculations.

Same recommendation for holders of life insurance over eight years who, in case of transfer to a PER before January 1, 2023, will be offered a doubling of their allowance.