Individual retirement savings plan simulator: retirement capital and tax savings

Simulate your individual PER

The simulator calculates your projected capital and cumulative tax savings based on your marginal tax bracket. Your data is neither stored nor transmitted.

Why the PER is only powerful if your tranche is

The individual retirement savings plan (PER) is based on a simple but often misunderstood mechanism: it doesn't eliminate taxes, it shifts them over time by anticipating a decrease in your marginal tax rate. You deduct today, at your working income rate; you repay tomorrow, at your retirement income rate—generally lower. The entire advantage lies in this difference in tax brackets, and nowhere else.

This is why the scheme is designed for high earners. At a marginal tax bracket of 41 or 45, the leverage effect at the outset is considerable, and the bet on the tax bracket differential is almost guaranteed to pay off. Conversely, for a tax bracket of 0 or 11, the advantage at the outset is minimal, the capital is locked in until retirement, and other investment vehicles—assurance-vie, PEA—offer a flexibility that the PER does not.

The common mistake is to view the PER (Retirement Savings Plan) as a universal product to subscribe to "because it's good for retirement." This is wrong: it's a tax management tool, the relevance of which depends entirely on your current tax bracket, your likely future tax bracket, and its place within your overall asset allocation. If poorly designed, it locks up savings for a meager tax benefit.

The 3 levers that this simulator reveals (and that your banker doesn't control)

Lever 1: the tax bracket differential, the real driver of tax revenue

Deducting 41% of the taxable income (%) and receiving 30% of the taxable income (30 %): this is the core of the PER's performance, far more so than the returns on the investment options. The portion corresponding to the deducted contributions is subject to income tax; the gains, however, are taxed at a flat rate of 30% of the taxable income (%). If your tax bracket remains the same between working years and retirement, the net gain amounts to tax-free capital accumulation—real, but much less than the advertised deduction promises. The full benefit is only realized if your tax bracket decreases upon retirement.

Lever 2: The carry-forward deduction ceiling, the blind spot in good years

Your contributions are tax-deductible up to a limit of 10% of your professional income, with a minimum and maximum limit. What few savers take advantage of is that unused allowances from the previous three years remain available, and married or civilly partnered couples can combine their allowances. A year of exceptional bonuses, asset sales, or increased income then becomes an opportunity for a massively deductible contribution, making up for several years of unused allowances. Without this management, the lost allowance is lost permanently.

Lever 3: the split exit, to avoid being caught by one's own deduction

Withdrawing your entire retirement savings plan (PER) in a single year can significantly increase your taxable income and push you into a higher tax bracket—eliminating some of the initial savings. Managing the withdrawal, spread over several years and coordinated with your other retirement income, determines the plan's true tax efficiency. This is precisely the calculation that distributors rarely present: they emphasize the savings at the time of entry, never the final cost at the time of withdrawal.

Case study: Hélène, 48 years old, senior executive in Lyon

Hélène, with a marginal tax rate of 41 %, contributes €5,000 initially and then €400 per month for 17 years to an open-architecture retirement savings plan (PER) aiming for 4 % net of management fees. Here is what the simulator projects for her retirement:

With the same savings effort, the PER (Retirement Savings Plan) allows Hélène to finance her retirement capital with €35,500 less, as the government covers the difference through a tax deduction. The accumulated capital is the same; it's the actual cost to achieve it that changes dramatically. However, this assumes her pension bracket will decrease upon retirement: this is the case for Hélène, whose pension income will likely bring her down to 30%.

The lesson is clear: the PER (Retirement Savings Plan) is only advantageous for those in a high tax bracket and provided their withdrawal is carefully managed. If taken out without this understanding, it ties up savings for an uncertain tax benefit. This assessment—your current tax bracket, your future tax bracket—should precede any subscription.

The PER is a management tool, not a reflex.

This simulator provides a rough estimate of the tax savings and capital accumulated. The real value lies in the strategic choices: should you prioritize a retirement savings plan (PER), assurance-vie, a French equity savings plan (PEA), or a combination of both, depending on your income bracket, investment horizon, liquidity needs, and asset structure? How much should you contribute, over which years, and through which investment vehicle? How should you withdraw your funds, and over how many fiscal years?

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any bank. This objectivity allows us to select the PER (Retirement Savings Plan) contract from across the market—with controlled fees and an open architecture—and integrate it with the rest of your assets, without any incentive to promote a proprietary product. Let's make an appointment to determine if, and how, the P/E ratio has a place in your strategy.

Frequently Asked Questions

How much can I deduct each year from my PER?

As an employee or equivalent, your contributions are deductible up to 10% of your professional income from the previous year, with an annual minimum and maximum limit. Unused allowances from the last three years remain available, and married or civil union partners can combine their allowances. When used effectively, this carry-forward allows for a substantial deductible contribution in a year of exceptional income.

What are the tax implications when exiting the PER?

At retirement, you can choose a lump sum, an annuity, or a combination of both. The portion corresponding to your contributions, which you have deducted, is added back to your income tax; the gains are taxed at a flat rate of 30%. The key advantage lies in the difference between your tax brackets: deducting at 41% today and receiving the benefit at a lower rate tomorrow. Spreading the withdrawal over several years avoids artificially raising your tax bracket.

Is the PER (Performance-Based Retirement Plan) worthwhile if my income bracket is low?

Rarely. At a marginal tax rate of 0 or 11, the upfront benefit is minimal and doesn't compensate for tying up your savings until retirement. In this case, assurance-vie or a PEA (equity savings plan) – more flexible and tax-efficient in their own way – are generally preferable. The PER (retirement savings plan) becomes truly worthwhile starting at 30, and becomes a powerful tool at 41 or 45.

Can I get my money back before retirement?

The PER (Retirement Savings Plan) is a long-term savings plan, but with exit strategies. Early withdrawal is possible for the purchase of your primary residence, as well as in the event of unforeseen life events (disability, death of a spouse, excessive debt, loss of unemployment benefits, bankruptcy). Outside of these circumstances, the funds remain locked until your retirement.

What is the difference between Balmont Conseil and a bank advisor?

Balmont Conseil is a consulting firm, a member of ANACOFI, with no capital ties to any bank. We select the PER (Retirement Savings Plan) from across the market based on its fees and structure, and integrate it into an overall strategy. A bank advisor distributes the PER from their network and highlights the savings at the outset; we first calculate whether the plan truly serves your best interests, including the exit strategy.