Who has never heard of PER? The new retirement savings plan, set up by Bruno Le Maire during the previous term of office, is now very popular with French people. It is a powerful tool, remember 20 minutes in your Journal des Seniors, to prepare for retirement and reduce tax at the same time. Since 2019, it has replaced several other investments, such as the PERP or the Madelin Retraite. But here it is: however effective it may be, this product is of little interest to those who have already liquidated their rights. Does this mean that it is no longer possible to save after the cessation of activity?
Fortunately, no! It’s never too late to save money. Provided you know how to go about it and, as Philippe Crevel has explained more than once in columns, never put all your eggs in one basket. But what are, in this case, the options available to retirees? Two products come to mind from the outset: the equity savings plan (PEA) as well as life insurance, which French people know well. Two more than advantageous savings assets when used correctly. Summary.
It’s hard to miss out on life insurance. Some claim that it is the preferred investment for savers, in direct competition with the Livret A account. It has several strong points: it can be topped up as often as desired, with no age or activity limit . The savings placed there are secure and can be recovered as a supplementary annuity, redeemed in whole or in part. In addition, it is an opportunity to reduce your taxation and prepare your succession. Be careful however, profitability is not guaranteed before the 8th year.
The stock savings plan, as well as the company savings plan (PEE) are also two good investments. Only, explains the magazine Dossier Familial on its site, these are products more suited to pre-retirement.
The PEE is generally offered by the company and makes it possible to save in a “virtually painless” way since it is possible to pay its profit-sharing bonuses or its participation. In addition, the management costs are borne by the employer. However, you have to wait 5 years before you can recover the money invested.
The PEA, for its part, can only accommodate European shares or from funds invested in share plans. The money invested can be recovered before five years, but unfortunately this means sitting on the tax exemption to which it is nevertheless possible to claim in normal times. Moreover, it is an investment that can prove to be very profitable and that Philippe Crevel recommended in our columns to diversify his savings after the age of 60.
Real estate is a third aspect that should not be overlooked: it can be used to prepare for retirement while you are still active but can also prove profitable after the liquidation of rights. Especially in the context of a rental investment.
Several options are then available to investors, including those who have already retired: there are SCPIs, also known as stone paper, which make it possible to generate additional income without having to invest too much money. Without forgetting, of course, the LMNP format (non-professional furnished rental company), which makes it possible to exempt rents collected for many years from tax and which the tax lawyer Thomas Carbonnier had the opportunity to recommend in our columns.