Life insurance and PER: what you can no longer do after December 31, 2022

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The retirement savings plan, also known as PER, was created in 2019 through the PACTE law. Since then, this plan has accumulated more than six million beneficiaries, as reported by our colleagues from Pleine Vie. When this savings plan was created, another system was put in place, allowing everyone to transfer funds from life insurance to this plan. It is possible to transfer all or only part of it. However, it should be kept in mind that, by definition, the funds paid into a retirement savings plan will no longer be accessible until retirement, unlike the funds paid into life insurance.

Attention: the device will cease to be operational on December 31! If you were planning to invest your life insurance savings in your retirement savings, it is high time to take care of it. The device is even more advantageous than you suspected: in addition to making this transfer of funds possible, it guarantees whoever uses it a significant tax advantage.

Indeed, the purchase of life insurance is currently associated with a tax allowance of around double. According to Service-public.fr, a single individual will be entitled to a reduction of 9,200 euros instead of 4,600 euros, and a couple will benefit from a reduction of up to 18,400 euros instead of 9,200 euros. It is also still possible to deduct from your taxable income the sum of the payments within the limit of the ceiling of the tax administration which appears on each tax notice.

However, a few conditions must be met in order to be able to proceed with the transfer before December 31. Your life insurance contract must be more than 8 years old, and the contract holder must be more than 5 years from his retirement age. It should be remembered that, for the moment, the legal retirement age is still 62 years.