PER: Plan d'Epargne Retraite
The PER is France's flagship retirement savings plan, created by the Loi PACTE in 2019 to simplify and modernize long-term savings. It offers powerful tax deductions on contributions, but the wrong choices on fees, tax options, or provider can cost you thousands. Here is how to use it well.
What is the PER?
The Plan d'Epargne Retraite (PER) is a retirement savings plan introduced by the Loi PACTE on October 22, 2019. It was designed to replace and unify the older, fragmented retirement savings products that had accumulated over decades: PERP, Madelin, Article 83, and PERCO. Since October 2020, these legacy products can no longer be opened, and existing ones can be transferred into the new PER.
The core idea is simple: you contribute money into a dedicated account, deduct those contributions from your taxable income, and the money grows invested until retirement. At retirement, you choose to withdraw as capital (lump sum), as an annuity (rente viagere), or a mix of both.
The three types of PER
Opened by anyone on their own initiative. Available from banks, insurers, and online brokers. This is the most common type for individuals managing their own retirement savings.
Company-sponsored plan, open to all employees. Participation is voluntary. May include employer matching contributions (abondement). Replaces the old PERCO.
Company plan with mandatory participation for the designated employee categories. Replaces the old Article 83 contract. The employer defines contributions and the investment framework.
All three types share the same structure of three compartments (individual voluntary contributions, employer-related contributions, and mandatory contributions), which makes transfers between PER types straightforward. This portability was one of the key improvements of the Loi PACTE reform.
How the PER works
When you open a PER individuel, you choose a provider and start contributing. Your contributions are invested in financial markets through funds selected by the provider. By default, the PER uses a management approach called gestion pilotee a horizon (lifecycle investing).
Gestion pilotee a horizon (default management)
This is the default investment mode required by law. The allocation automatically adjusts based on how far you are from retirement:
More stocks, more growth potential. The long time horizon absorbs short-term volatility.
Gradually shifting toward bonds and lower-risk assets.
Mostly bonds and money-market funds to protect the accumulated capital.
You can opt out of gestion pilotee and choose gestion libre (self-directed) if you prefer to manage the allocation yourself. However, the default lifecycle approach is a solid choice for most people.
Money is locked until retirement
Unlike a regular savings account, PER funds are locked until you reach the legal retirement age (applicable to your generation, up to 64 under current rules). There are specific early withdrawal exceptions (covered below), but the general principle is that this money is off-limits until retirement. This lock-in is the trade-off for the tax deduction.
Transferability
You can transfer your PER from one provider to another at any time. If the PER is less than 5 years old, the transfer fee is capped at 1% of the outstanding balance. After 5 years, the transfer must be free. This is a major improvement over the old products, which often trapped savers with a single provider.
Tax advantages
The PER's main appeal is the tax deduction on contributions. But the system offers two paths, and choosing the right one depends on your current tax bracket.
Option A: Deduct contributions at entry
Your contributions are subtracted from your taxable income the year you make them. This gives you an immediate tax saving proportional to your marginal tax rate.
Option B: No deduction at entry
You choose not to deduct your contributions from your taxable income. In exchange, the exit taxation is much lighter.
Deduction ceiling (2026 figures)
Minimum: 4,710 euros. Maximum: 37,680 euros (10% of 8x the PASS, Plafond Annuel de la Sécurité Sociale).
Self-employed workers benefit from an additional deduction on top of the employee ceiling, up to 15% of the portion of income between 1x and 8x the PASS.
If you did not use your full deduction allowance in previous years, you can carry forward the unused portion for up to 3 years. This means you can make a large one-time contribution and deduct more than the standard annual limit. Check your tax notice (avis d'imposition) for the exact available ceiling, listed under "plafond epargne retraite."
Voluntary contributions may still be possible depending on the contract, but the tax deduction no longer applies after age 70. (official source).
Example: the real tax savings
Contributing 5,000 euros to a PER with deduction at entry:
The higher your marginal tax rate, the more valuable the deduction. At the 11% bracket, the savings are modest (550 euros on a 5,000 euro contribution), which is why Option B (no deduction) may be preferable for low-income earners.
Which option should you choose?
Types of PER in detail
The Loi PACTE created three PER types. They share the same three-compartment structure but differ in who opens them and how contributions are made.
PER individuel (PERIN)
The flagship product for individuals. Anyone can open one, whether employed, self-employed, or even without professional activity. You choose the provider, the investment strategy, and the contribution rhythm.
PER d'entreprise collectif (PERECO)
Set up by the employer, open to all employees (and sometimes company directors). Participation is voluntary. This replaces the old PERCO.
PER d'entreprise obligatoire (PERO)
Set up by the employer with mandatory participation for the designated employee categories. Replaces the old Article 83 contract. The employer defines the contribution framework.
Quick comparison
Early withdrawal cases
PER funds are normally locked until retirement. However, the law defines specific situations where you can access your money early. These exceptions exist for genuine life events, not for convenience.
Purchase of primary residence
Available for PER individuel and PER collectif (voluntary compartment only). This is the most commonly used early withdrawal reason. You can use part or all of your PER to fund the purchase of your main home. Not available for the mandatory compartment of PERO.
Death of spouse or civil partner (PACS)
Full early withdrawal is permitted upon the death of your spouse or PACS partner.
Disability (2nd or 3rd category)
If you, your spouse, your PACS partner, or your children are classified as having a 2nd or 3rd category disability, you can withdraw early.
End of unemployment benefits
If you have exhausted your unemployment insurance rights (droits a l'assurance chomage) or, for certain categories, have not been employed for at least 2 years after a company officer role ended.
Over-indebtedness (surendettement)
If the Banque de France's over-indebtedness commission declares you in a situation of over-indebtedness, early withdrawal is possible.
Cessation of non-salaried activity
If you were self-employed or a business owner and your activity has ended following a court liquidation judgment.
Taxation on early withdrawal
The tax treatment of an early withdrawal depends on the reason and whether you deducted at entry. For the primary residence case with prior deduction, the capital portion is taxed as income (but not subject to the 10% pension/annuity abatement). Gains are taxed under the PFU rules in force at the time of withdrawal. For life accidents (death, disability, unemployment, over-indebtedness, cessation), the withdrawal is fully exempt from income tax. Only social contributions apply on the gains portion.
Exit options at retirement
When you reach retirement, you choose how to receive your PER funds. This is one of the biggest improvements over the old PERP, which forced annuity exit for most of the balance.
Capital (lump sum)
- Receive your money as a one-time payment or spread over several years
- Full control over the funds after withdrawal
- Contributions taxed as income (if deducted at entry)
Annuity (rente viagere)
- Regular income for the rest of your life
- Protects against longevity risk (outliving your savings)
- Taxed as pension income (RNTS) with partial abatement
You can also combine both: take part as capital and convert the rest into an annuity. There is no single best answer. It depends on your total retirement income, your life expectancy estimates, your other savings, and your tax situation.
Exit taxation summary
PFU = Prélèvement Forfaitaire Unique, under the rules in force at the time of withdrawal. You can opt for the progressive income tax scale (bareme) instead of the flat income-tax portion if it is more favorable.
Practical tip: fractional capital exit
You are not forced to take all the capital in a single year. Spreading capital withdrawals across multiple tax years can lower the progressive tax impact, similar to staggered 3a withdrawals in Switzerland. Plan this carefully with your expected retirement income.
Choosing the right PER
Not all PERs are created equal. The provider you choose determines the fees you pay, the funds available, and ultimately how much your retirement savings will grow. Here is what to look for.
Where to open a PER individuel
Online brokers and specialized platforms
Providers like Linxea, Placement-direct, or Assurancevie.com offer PER contracts with low fees and access to a broad range of ETFs and index funds. Frais sur versement: 0%. Frais de gestion: typically 0.50%-0.60% for the insurance wrapper, plus the cost of the underlying funds (0.20%- 0.30% for ETFs). These are the best option for cost-conscious investors.
Banks
Traditional banks offer PER products, but fees are often significantly higher. Frais sur versement can reach 2-4%, and management fees are frequently above 1%. The fund selection may be limited to the bank's proprietary products. Check all costs before signing.
Insurance companies (direct)
Some insurers sell PER contracts directly. Fees vary widely. The key is to compare the total cost (frais sur versement + frais de gestion annuels + frais d'arbitrage + underlying fund costs) and the quality of available investment options.
Fees to scrutinize
Frais sur versement (entry fees)
A percentage taken from every contribution before it is invested. Good PERs charge 0%. Banks often charge 2-4%. A 3% entry fee on a 5,000 euro contribution means 150 euros lost immediately. Over 30 years of contributions, this adds up to thousands.
Frais de gestion annuels (annual management fees)
The annual fee charged on your total balance by the insurance wrapper. Good contracts charge 0.50%-0.60%. Expensive ones charge 0.80%-1.00% or more. This fee compounds every year on a growing balance, making it the most impactful cost over time.
Frais d'arbitrage (switching fees)
Charged when you switch between funds inside your PER. Good contracts offer free switches (at least several per year). Some charge 0.50-1% per switch, discouraging you from rebalancing.
Underlying fund costs (TER/DICI)
The fees of the funds themselves, on top of the insurance wrapper fee. ETFs cost 0.10%-0.30%. Actively managed funds can cost 1.50%-2.50%. Choosing a PER that gives access to ETFs instead of only actively managed funds can save you 1-2% per year in hidden costs.
The real cost difference over 25 years
5,000 euros/year contributed for 25 years, assuming 6% gross returns:
The difference: approximately 75,000 euros lost to higher fees over 25 years. The entry fee alone costs 3,750 euros on the contributions. The higher annual fees compound on a growing balance, widening the gap every year. See our compound interest page for the mechanics.
Traps to avoid
1. Opening a PER at your bank without comparing
Your bank will happily offer you their PER. But bank PER products are almost always among the most expensive: entry fees of 2-4%, high annual management fees, and a limited selection of costly proprietary funds. Always compare with online alternatives before signing. The difference in fees compounds into tens of thousands of euros over a career.
2. Choosing the wrong tax option for your bracket
If you are in the 11% tax bracket, deducting at entry saves you only 550 euros on a 5,000 euro contribution. But at exit, the entire capital will be taxed as income. If your retirement income pushes you into the 30% bracket, you will pay more tax at exit than you saved at entry. For low tax brackets, the non-deduction option is often better.
3. Ignoring the opportunity cost for low earners
The PER locks your money until retirement. If your tax bracket is low and the deduction benefit is small, consider whether locking up that money is worth it. You might be better off investing in a regular ETF portfolio (like a PEA or CTO) where you can access the money if needed. The PER is most powerful for people in high tax brackets (30% and above).
4. Staying in the default fund selection without checking
The default gestion pilotee is not always bad, but the funds used vary dramatically between providers. Some use low-cost index funds, others use expensive active funds with 2% annual costs. Check what the default portfolio actually holds and switch to gestion libre with ETFs if the default is too expensive.
5. Forgetting to check your available deduction ceiling
Your tax notice (avis d'imposition) shows your available PER deduction ceiling, including carried-forward amounts from the previous 3 years. Many people leave this unused. If you have a high-income year (bonus, severance, freelance income), you can make a large contribution and deduct it all, potentially dropping into a lower tax bracket.
6. Not considering a PEA alongside the PER
The PER and PEA (Plan d'Epargne en Actions) serve different purposes but complement each other. The PEA offers tax-free capital gains after 5 years and full liquidity. The PER offers upfront tax deduction but locks your money. A balanced strategy often uses both: PER for the tax deduction (especially in high brackets) and PEA for flexible, tax-efficient long-term investing.
How Boring Money helps you manage your PER
Your PER is a long-term commitment that deserves proper tracking. Boring Money brings your retirement savings into a single financial picture:
- Track your PER as an investment. Add your PER balance as an investment in Boring Money. See its current value and growth alongside your other accounts. Your PER is included in your net worth calculation, giving you the full picture of your wealth.
- Optimize your savings rate for maximum contribution. By tracking your savings rate and setting budgets, you can ensure you have enough room to maximize your PER contributions each year. Every euro of unused deduction ceiling is a missed tax saving.
- See your complete retirement picture. Your dashboard shows liquid assets, investments, and tracked accounts. With your PER alongside your PEA, CTO, and other savings, you see exactly how your retirement preparation is progressing. The compound growth curve on your net worth chart becomes highly motivating when you include all your accounts.
Track your PER, PEA, and complete net worth in one place.
Start tracking your retirement savingsFrequently asked questions
How much can I deduct with a PER?
You can deduct up to 10% of your net professional income from the previous year (N-1), with a minimum of 4,710 euros and a maximum of 37,680 euros for 2026. If you did not use your full deduction, unused amounts can carry forward. For 2026 ceilings and after, the carry-forward window is 5 years. Self-employed workers benefit from an additional ceiling. Check the "plafond epargne retraite" line on your tax notice for your exact available amount.
Can I withdraw my PER early?
Yes, but only in legally defined cases: purchase of your primary residence (PER individuel and PERECO only), death of your spouse or PACS partner, disability (2nd or 3rd category), end of unemployment benefits, over-indebtedness, or cessation of non-salaried business activity. Outside these cases, your money stays locked until the legal retirement age applicable to your generation. The primary residence exception is the most commonly used and is one of the PER's key advantages over the old PERP.
PER individuel vs PER collectif: which is better?
They are complementary, not competing. If your employer offers a PER collectif with matching contributions (abondement), it usually makes sense to use it first, since the employer match is a high-value benefit. Then open a PER individuel to invest the rest of your deduction ceiling with a low-cost provider of your choice. The PER collectif may have limited fund options but benefits from group-negotiated fees. The PER individuel gives you full control over provider and investment strategy.
Should I choose tax deduction at entry or not?
It depends on your current marginal tax rate. At 30% or above, deducting at entry is often the right choice. The immediate tax saving is substantial (1,500 euros saved on a 5,000 euro contribution at 30%). At the 11% bracket, the math is less clear. You save only 550 euros at entry, but at exit, your entire capital is taxed as income. In practice, the PER is first and foremost a tax deferral tool. If you expect your retirement income to be in a similar or higher bracket, skipping the deduction (Option B) may leave you better off. At the 0% bracket, there is usually no benefit to deducting, so Option B is often more attractive. When in doubt, a tax advisor can model your specific situation.
Official sources
Related resources
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