PER (Retirement Savings Plan): Complete Guide and Tax Benefits

The PER (Retirement Savings Plan): an essential lever to prepare for retirement

The Retirement Savings Plan (PER) has become in a few years an essential tool to build savings dedicated to retirement, while benefiting from attractive taxation advantages. Established by the Pacte law in 2019, it replaced several old schemes, thus simplifying the management of your retirement savings. But how exactly does this product work, what are its taxation advantages, and what points should be monitored? This complete guide will accompany you step by step to understand all aspects of the PER and optimize your financial preparation for retirement.

What is the Retirement Savings Plan (PER)?

The PER is a long-term savings product intended to build up a capital or an annuity that will be available at the time of retirement. There are three types of PER: the individual PER, the collective PER, and the mandatory PER. The individual PER is accessible to everyone, while the collective and mandatory versions are often offered by the employer within the company framework.

This scheme allows you to contribute money regularly or occasionally, which will be locked until retirement except in exceptional cases (purchase of the main residence, disability, death…). Upon exit, the capital can be recovered in the form of a life annuity or capital, according to the holder’s choice.

Taxation advantages at entry: how to reduce your income tax

The main attraction of the PER lies in its advantageous taxation. Amounts paid into an individual PER are deductible from taxable income, within the limit of an annual ceiling. Concretely, this means you reduce your taxable base and thus your income tax.

For 2024, the deduction ceiling is equal to 10% of the previous year’s professional income, with a maximum of €32,909 (for a single person). If this p