Who says end of career says drop in income. If you have already calculated your retirement pension, you may be worried about seeing your standard of living drop when the time comes. Do not panic ! To prevent this problem, several solutions are available to you, in particular the possibility of supplementing your pension with additional savings solutions. Among them, funded retirement is an advantageous choice, provided you are well informed. Here are all our tips for setting it up.
The pension system currently in force operates on a pay-as-you-go principle. Thus, the contributions paid by working people for old-age insurance make it possible to pay the pensions of retirees. However, this solidarity scheme has the possibility of being associated with a funded pension. With this capitalization process, today’s workers will save in order to finance their own retirement. These contributions are therefore the subject of financial or real estate investments. It is the evolution of the financial markets, as well as the interest rates which decide the yield of the contributions. When the pension is settled, the sums paid are converted into capital or a life annuity.
To prepare a funded retirement solution, you can choose an individual guarantee. For example, taking out life insurance can allow you to invest in funds in euros, but also units of account. In this way, you will build up an interesting capital. Do not forget the PERP (Popular Retirement Savings Plan), which offers you a payment in the form of a life annuity and a capital of up to 20%. Your company can also offer you an adapted retirement savings solution with a PER Entreprises – Article 83 contract, which offers a life annuity, or a PERCO (Plan d’Epargne pour la Retraite Collectif), for capital at the attractive taxation.
