Perp: What has become of this contract since October 2020, and what can you do with it?

The PERP (Plan d'Épargne Retraite Populaire) is no longer marketed since October 1, 2020, due to the creation of the PER (Plan d'Épargne Retraite). If you have a PERP, your contract remains valid: you can still contribute to it and keep it, or transfer the money to a PER. The withdrawal rules are those of your contract, including the portion that can be paid out as a lump sum, if the contract allows it.

This page describes what happens to an existing PERP (French retirement savings plan): operation, contributions, withdrawal, early withdrawal, transfer, and death. It does not provide the social security contribution rate applicable to withdrawals from a PERP, nor the timeframe and maximum fees for a transfer; these should be verified with the official source. It also does not address the situation of non-residents or the carryover of unused contribution limits.

What changed on October 1, 2020

According to service-public.gouv.fr, the individual PER succeeds the Perp and the Madelin contract, which are no longer offered since that date.

How does a PERP work?

The PERP is a long-term savings product. It provides supplementary income, generally paid as a lifetime annuity. Payments can be periodic and fixed, or flexible and without any minimum amount requirement.

Service-public.gouv.fr distinguishes three types of contracts:

• the deferred life annuity contract; ;
• the unit-linked annuity contract; ;
• the multi-support contract.

With a multi-asset contract, the value of your savings depends on the chosen assets: it can decrease, with a risk of capital loss.

The funds can be released no earlier than the date you receive your retirement pension. The "Retirement Savings" page on impots.gouv.fr similarly describes a contract that allows you to build up a life annuity payable, at the earliest, on the date your pension is liquidated.

Payments and the 2026 deduction limit

The amounts paid into the Perp are deductible from the taxable income of the year, up to an individual limit.

For contributions paid in 2026, the service-public.gouv.fr fact sheet gives a ceiling of 10 % of professional income in 2025, net of social security contributions and professional expenses, with a maximum deduction of €37,680, or €4,710 if this amount is higher.

• This ceiling also applies to sums paid into other retirement savings schemes: it is not specific to the Perp; ;
• Married or civil union couples can opt, when filing their income tax return, to pool their individual ceilings.

The pages I read about the PERP (French retirement savings plan) do not address the 2026 rule regarding contributions from holders aged 70 or older. If you are 70 or older, have your situation reviewed before making any contributions.

The payout: annuity in principle, lump sum in some cases

The annuity

The payout is generally in the form of a lifetime annuity. The annuity payments are subject to annual income tax.

Capital

Service-public.gouv.fr states that the payment of a lump sum is limited to exceptional cases:

The capital is generally taxed according to the progressive income tax scale. You can opt for a flat-rate withholding tax of 7.5% (%) if two conditions are met: the capital is paid in a single lump sum, and the PERP (French retirement savings plan) has been funded solely with contributions deductible from taxable income.

The social security contribution rate applicable to withdrawals from a PERP (French retirement savings plan) is not listed in the documents we have reviewed. It must be verified on your file before any decision is made.

Early release

Service-public.gouv.fr states that it is possible to release savings early "in particular" in the following cases:

• disability; ;
• death of the spouse or civil partner; ;
• end of entitlement to unemployment benefits; ;
• over-indebtedness (the request must be made by the over-indebtedness commission); ;
• cessation of self-employed activity following a court-ordered liquidation; ;
• savings less than €2,000, for a PERP with scheduled payments of more than 4 years or with free payments without payment for 4 years, with income below the first bracket of the income tax scale.

The application must be made no later than two years after the date on which you became aware of the situation. The capital paid out in these exceptional cases is exempt from income tax.

The list is introduced by "notably": we do not give a total number.

Transferring a PERP to a PER

At your request, the organization managing your PERP (Retirement Savings Plan) is obligated to open a PER (Retirement Savings Plan) for you and transfer your accumulated savings to it. The request can be made online if the organization offers this option; otherwise, it must be submitted by mail.

Transferring a retirement savings plan (PERP) incurs fees, which vary from one provider to another. The PERP information sheet does not specify a maximum fee. The transfer timeframe and any applicable fee cap should be verified with the official source: the "Retirement Savings Plan (PER)" information sheet on service-public.gouv.fr covers the transfer of existing products, and its scope should be reviewed for your specific contract before making any decisions. Also, ask your current provider for a detailed breakdown of the fees.

Transferring is not mandatory. The information sheet states that you can keep the PERP. Our page "PER: transferring your savings, deadlines and fees" details the deadlines and fees for a transfer.

In case of death

The accrued annuity amount can be paid out as a lifetime annuity to the surviving spouse, civil partner, or a designated beneficiary. Otherwise, it is paid out as an educational annuity for minor children. If there are no minor children, the savings in the PERP become part of the estate.

Numerical example (fictitious profile)

Situation. Marc, 58 years old (fictitious profile), took out a PERP (French retirement savings plan) before October 2020. We assume that his 2025 professional income, net of social security contributions and professional expenses, is €90,000, that he has no other retirement savings contributions planned for 2026, and that the rules outlined on the service-public.gouv.fr website apply to his situation. He plans to contribute €6,000 to his PERP in 2026. His contract provides for a lump sum payment of €20,130 upon withdrawal. We assume a surrender value of €100,000 at that time.

Issue. He does not know what room the 2026 ceiling leaves him, nor what portion of his savings could be withdrawn as a lump sum.

Strategy. Apply the administration's figures to your profile: 2026 ceiling, then capital and annuity distribution as provided for in the contract.

Result.

The same ceiling calculation yields different results depending on income:

The €3,000 margin does not take into account any contributions to other retirement savings plans that share the same limit, nor any employer contributions. The annuity amount is not calculated; it depends on the contract. This profile is hypothetical. The figures illustrate the mechanism and do not predict the outcome for your specific situation.

What changes depending on your situation

• The type of your contract: deferred life annuity, annuity units or multi-asset.
• What your contract provides for upon exit: capital of 20 % or annuity only.
• The fees your organization charges for a transfer, and the processing time, should be verified with the official source.
• Your professional income in 2025 and your other retirement savings contributions.
• Your age, with regard to the 2026 rule on 70 years, which the pages read on the Perp do not address.
• Your situation: retirement, main residence project, event from the early release list.

This page does not say whether you should keep or transfer your PERP. No results are guaranteed.