Departure age, years of contribution, long careers… The pension reform, presented by Elisabeth Borne on January 23 in the Council of Ministers, promises many upheavals for the French… But also for their portfolio. Franck Fargerelle, Secretary General of Cheval Blanc Patrimoine, hopes that such a project will have the effect of “raising people’s awareness of the ability to save, of the discipline to put money aside regardless of the solution chosen to prepare retirement”. With 25 years of experience in banking, finance and asset management, he shares his sound advice for adapting your savings to the pension reform.
Before discussing the radical changes brought about by the pension reform, Franck Fargerelle recalls what, according to his expertise, are the best savings products to prepare for retirement:
In concrete terms, what will the pension reform change in the way you save?
The radical change brought about by the reform is the much younger awareness of funded retirement. “We tend to be sensitive to preparing for retirement only when we are approaching it. With this reform, we must start saving even more as soon as we are able to do so. The earlier and more regularly you save, the more you increase your ability to generate profit and increase capital”, explains Franck Fargerelle.
What if you already have ongoing savings projects? Should we prioritize them, or save at all racks?
Do you prefer to save in order to become an owner, to buy a car… Rather than preparing for your old age? “The horizon of retirement being far away, we do not necessarily have a sensitivity to prepare for it. But one does not prevent the other! We can very well save to have a contribution to buy a main residence , but you can discipline yourself by putting aside, for example, 150 euros per month: 100 intended for residence, and 50 for preparing for retirement”, deciphers Franck Fargerelle.
In addition, the expert advises not to rely on the simple idea of becoming an owner in order to have fewer costs once you retire. “Not paying rent is something reassuring, but the main residence is a liability, not an asset: it does not generate income. We must think of investments that can generate income, and not be satisfied to have a roof, because you might not have enough to fill your fridge”, comments the general secretary of Cheval Blanc Patrimoine.
Finally, Franck Fargelle advises to multiply its investments, and to dare the risk. “The Livret A account certainly gives you a return of almost 3%, but why limit your investments to guaranteed capital funds with a reduced return, rather than facing a risk which, whatever happens, will be as profitable as it will be long? ?” he concludes.