Saving now for retirement while paying less taxes is possible!

With its 25,000 customers, My Little Investmentthe Lyon fintech, is launching a new investment solution: the retirement savings plan, or PER for short. Launched in 2019 by the PACTE law, this investment envelope is experiencing growing success, but still remains relatively little known to the general public. We explain everything to you.

The PER: build your retirement supplement with tax advantages now

To understand the benefit of a PER, we must first start from an observation: our pay-as-you-go retirement system, despite its advantages, is in danger. It is not the news that will say the opposite. The figures are unequivocal: INSEE estimates that income drops by 30 to 50% upon retirement compared to one's last salary. It is therefore important to protect your back by saving now for your retirement in order to build up additional income in the long term.

You can obviously put money aside in regulated savings accounts such as Livret A, place it in envelopes such as life insurance or even leave your savings in current accounts. We do not recommend this last option but be aware that, on average, 18,000 euros are “sleeping” in the current accounts of each French person according to calculations by the Banque de France, published in its 2022 annual report.

Savings blocked… but not completely!

In theory, the money invested in a PER is blocked until retirement. Under certain conditions, however, it is possible to carry out an early release for the purchase of a main residence, or in the event of a life accident such as (disability or death of a spouse, end of unemployment rights, etc.).

The PER will avoid this pitfall: it allows you to put your money to work for later, while benefiting from tax advantages now. Thanks to the PER, in return for savings blocked until retirement, the amounts you invest can be deducted from your taxable income within a certain limit. This ceiling depends on your professional status (employed or self-employed) and your level of professional income from the previous year.

To find out your ceiling, it's quite simple since it is indicated on your tax notice on the line “Total ceiling of [année]” in the “Retirement savings ceiling” section. This total amount also takes into account any balances from previous years.

Concretely this means that if you declare 45,000 euros of annual income, you can therefore deduct 4,500 euros of investments from your PER. As with all tax deductions, the higher your tax bracket, the more attractive it is.
Once retired, in the form of a life annuity (income assured until your death) or in “capital” (collection of all or part of the amount available on the PER, in one or more installments). In both cases, when this income is received, taxation is to be expected!

My Little Placement: management as a good family PER

The PER according to Mon Petit Placement is cleverly designed to guarantee management as a “good father”. First thing to know: this is managed management. The savings plan is therefore managed by experts on your behalf. The start-up opts for skillful management which gradually secures the portfolio as maturity approaches.

If you are young, you can indeed afford a little more risk, whereas when retirement approaches it is important to limit the volatility of the portfolio. To do this, Mon Petit Placement gradually integrates a portion of euro funds into the investment. Its net performance: 4.3%* in 2023. Even the low-risk part pays off! Remember, however, that past performance is no guarantee of future performance. Rest assured, if you are more of the cautious type, you still have the choice between three risk profiles.

You can then monitor all of this via a simple and intuitive application. If necessary, real, human advisors are available on the phone or via chat. Explanations guaranteed without complicated jargon which sometimes seems to hide a wolf.

Despite this, management fees are among the lowest on the market: only 0.8% fees per year for units of account (shares, bonds, SCPI, etc.) and 0.9% for funds in euros. Entry is also cheap: 300 euros minimum to start, then from 100 euros per month for regular payments.

With Mon Petit Placement, opening a PER is a particularly simple procedure. This is done in three main steps:

• Go to monpetitplacement.fr, click on “I’m getting started”, and complete the form in less than 10 minutes so that the team can offer you an investment strategy.
• Receive your advice free of charge and without obligation. If necessary, advisors are available by phone or via chat.
• If the offer suits you, simply validate your account and follow your investments online, directly from your customer area.

*Rate net of management fees and gross of social and tax contributions. Past performance does not guarantee future results. Mon Petit Placement, SAS located at 59 Rue de l'Abondance 69003 Lyon, with capital of €19,970, registered with the RCS of Lyon under number 831051453, is an insurance intermediary, member of Anacofi-courtage and registered at ORIAS under number 17005501, http://www.orias.fr/, as an insurance or reinsurance broker (COA) and broker in banking operations and payment services (COBSP). Mon Petit Placement offers investments in life insurance and Retirement Savings Plans.