In summary…
The two, in this order: the PER (retirement savings plan) up to the deduction limit, then life insurance for the rest. Dans le cas type (versement de 12 000 € par an pendant 20 ans, rendement de 3 % par an, hypothèse de calcul), chaque versement sur le PER économise €4,920 d’impôt à 41 %. Retirée à 67 ans en 10 ans, la part des versements déduits est imposée à 30% au lieu de 41 %, soit 26 400 € d’impôt de moins que si la tranche restait à 41 %. À effort égal de 12 000 € par an, la combinaison PER puis assurance-vie laisse 350 945 € nets après impôt, against €305,091 for life insurance alone, that is 45 854 € de plus. L’assurance-vie garde son rôle : elle reste disponible, et ses gains sont imposés à 7,5 % après 8 ans (sous 150 000 € de primes), après un abattement annuel de 4 600 €.
1. What the PER does, step by step
Le PER (plan d’épargne retraite) se déduit du revenu imposable à l’entrée et s’impose à la sortie. L’assurance-vie fonctionne à l’inverse : aucun avantage à l’entrée, une fiscalité allégée sur les gains à la sortie. Toute la comparaison tient à l’écart entre la tranche d’imposition de l’entrée et celle de la sortie.
| Step | Rule in 2026 |
|---|---|
| Entry: tax saving | Voluntary contributions are deducted from taxable income, unless the taxpayer opts for non-deduction. The savings are equal to the contribution multiplied by the marginal tax bracket: at 41 %, €0.41 per euro paid. Le barème 2026 applique 41 % de 84 578 € à 181 917 € de revenu par part, et 30 % de 29 580 € à 84 577 € (loi n° 2026-103, article 4). |
| Entry: ceiling for a self-employed worker | The higher of two amounts: 10 % of the previous year's profit (withheld up to 8 times the annual social security ceiling) or 10 % of this ceiling, This amounts to a minimum of €4,710 for a payment in 2026. Occupational pension contributions already deducted from the previous year's profit are reduced, except for a portion equal to 15 % of the profit between 1 and 8 times the ceiling. Any unused ceiling can be carried forward to the following five years. |
| Capital withdrawal: contributions deducted | The portion corresponding to the deducted payments is added to other income and is taxed according to the scale, without social security contributions and without the 10 % reduction pensions. She is eligible for the income averaging mechanism for exceptional income. |
| Capital withdrawal: gains | Single flat-rate levy of 31.4% For interest received since January 1, 2026: 12.8% tax and 18.6% social security contributions. The option to apply the standard tax scale remains available. |
| Lump-sum withdrawal: contributions not deducted | If the payment was not deducted, the corresponding portion of capital is exempt from income tax and social security contributions. Only the gains are taxed (31.4 %). |
| Annuity payout: payments deducted | The annuity is taxed as a retirement pension, with a 10% allowance (capped at €4,439 per household for 2025 income). Social security contributions of 18.6% are levied on a portion of the annuity that depends on the age at the first payment: 70% before age 50, 50% from age 50 to 59., 40 % aged 60 to 69, 30 % from age 70. |
| Annuity payout: payments not deducted | The annuity falls under the regime of life annuities for valuable consideration: only a fraction is taxable (70 %, 50 %, 40 % or 30 % depending on the age at the first payment), and social security contributions of 18.6 % apply to it. |
| Withdrawal before retirement | Possible in cases of early release as provided for in Article L. 224-4 of the Monetary and Financial Code. |
Our page Individual PER details how the contract works, and the article on the deduction ceiling and the 2026 finance law details the calculation of the ceiling.
2. What life insurance does after 8 years
| Point | Rule in 2026 |
|---|---|
| Contract of less than 8 years | Gains taxed at 12.8 % (or at the scale by option), without allowance. |
| Contract of 8 years or more: discount | The redeemed gains benefit from an annual allowance of €4,600 for a single person, €9,200 for a couple subject to joint taxation. It is a single agreement for all contracts within the household, does not carry over from one year to the next, and does not affect social security contributions. |
| Contract of 8 years or more: rate | After the initial shock, 7.5% as long as the total of premiums paid and not reimbursed as capital, across all contracts, does not exceed €150,000 as of December 31 of the previous year. Beyond that date, the 7.5% % rate applies only to the portion of earnings equal to €150,000 (less premiums paid before September 27, 2017, that have not been reimbursed) divided by the premiums paid since that date that have not been reimbursed; the remainder is taxed at 12.8% %. The allowance is first applied to the portion taxed at 7.5% %. |
| Social charges | 17.2% on the gains (principle rate). |
| Partial buyout | Only the portion of gains contained in the redemption is taxed: redemption less premiums paid multiplied by redemption divided by the value of the contract. |
| Scale option | Possible, explicitly, comprehensively, and irrevocably. The calculation below does not include it. |
3. Le calcul sur un médecin à 41 %
| Calculation assumption | Value retained |
|---|---|
| Médecin | 47 ans, célibataire (1 part), revenu imposable de 120 000 € avant versement : tranche marginale à 41 %, et le revenu reste au-dessus de 84 577 € après déduction |
| Payments | €12,000 per year on the PER for 20 years, from age 47 to 67, within the deduction limit (10% of a profit of €120,000), with no other occupational retirement contract deducted from the profit |
| Yield | 3 % per year, net of fees, identical for the PER and for life insurance (calculation assumption), payments at the end of the year |
| Tax saving | Comptée l’année du versement, sans décalage |
| Scale and rates | The 2026 tax brackets and social security contribution rates remain unchanged until retirement; calculation is based solely on the tax brackets, without any discounts or tax reductions. |
| Retirement at 67 | Pensions de 35 000 € par an, sans autre revenu ; abattement de 10 % de 3 500 €, soit 31 500 € imposables et 2 554 € d’impôt avant toute sortie du PER |
| Capital exit | 10 equal annual withdrawals from age 67 to 76, with no return after age 67 (simplifying assumption that isolates the effect of tax); the income-averaging mechanism is not modeled. |
| Annuity payout | Conversion rate of 4 % of capital at age 67 (calculation assumption) |
| Assurance-vie | Contract of more than 8 years, no other contract in the household, 10 equal annual redemptions from age 67 to 76, social security contributions of 17.2% on gains, rates of 7.5% and 12.8% spread each year according to the remaining premiums |
Typical case
Situation. Un cardiologue libéral de 47 ans, secteur 2, célibataire, a 120 000 € de revenu imposable et 12 000 € par an à mettre de côté pour sa retraite jusqu’à 67 ans.
Issue. He is hesitating between the PER (Retirement Savings Plan), which reduces his taxes immediately, and life insurance, which remains accessible and whose gains are taxed at a low rate after 8 years. Every euro paid into the PER will be taxed again upon withdrawal: the advantage only exists if the withdrawal tax bracket is lower than the contribution bracket.
Strategy. Il compare quatre montages. Montage 1 : 12 000 € par an en assurance-vie. Montage 2 : 12 000 € par an sur le PER, qui lui rend 4 920 € d’impôt chaque année (12 000 € × 41 %) et ne lui coûte que 7 080 €. Montage 3 : 7 080 € par an en assurance-vie, pour comparer à effort égal avec le montage 2. Montage 4 : 12 000 € sur le PER puis les 4 920 € d’économie d’impôt placés en assurance-vie, soit 12 000 € d’effort net par an, comme le montage 1. À 67 ans il sort le capital du PER en 10 ans.
Result. Assembly 4 leaves 350 945 € nets after tax, versus €305,091 for assembly 1, i.e. 45 854 € de plus à effort identique. Le PER seul laisse 224 557 € pour 7 080 € d’effort par an, contre 181 678 € pour la même somme en assurance-vie.
Capital at age 67 and exit tax
| Assembly | Net effort per year | Capital at 67 years old | including earnings | Tax and charges on exit | Net after tax |
|---|---|---|---|---|---|
| 1. Life insurance alone | €12,000 | €322,444 | €82,444 | €17,354 | €305,091 |
| 2. PER alone | €7,080 | €322,444 | €82,444 | €97,888 | €224,557 |
| 3. Life insurance alone, same effort as the PER | €7,080 | €190,242 | €48,642 | €8,565 | €181,678 |
| 4. PER, then tax savings through life insurance | €12,000 | €454,647 | €116,247 | €103,702 | €350,945 |
Details of the PER lump sum withdrawal
| Item | Base | Rate | Amount |
|---|---|---|---|
| Payments deducted and withdrawn (scale) | €240,000 | 30 % (retirement bracket) | €72,000 |
| Withdrawals (single flat-rate deduction) | €82,444 | 31.4% | €25,888 |
| Total at exit | €322,444 | 30.4 % of the capital | €97,888 |
Chaque année de sortie ajoute 24 000 € de versements déduits aux 31 500 € de pensions imposables. Le total reste sous 84 577 € : toute la part est taxée à 30 %. La tranche à 30 % laisse 53 077 € de place chaque année avant d’atteindre 41 %, donc 24 000 € n’en consomme que 45 %. Retirée en une seule année, la même part de 240 000 € coûterait 96 145 € d’impôt au lieu de 72 000 €, sans compter le quotient que nous n’avons pas modélisé. Spreading the output is the first lever of the PER.
What if the pension bracket doesn't decrease at retirement?
Le médecin qui conserve 90 000 € de revenus imposables par an à la retraite (loyers, activité de remplacement) reste à 41 % à la sortie. L’impôt sur les versements déduits passe alors à 98 400 €, soit exactement l’économie obtenue à l’entrée, et le PER seul laisse 198 157 € contre 181 678 € pour l’assurance-vie à effort égal, soit 16 479 € de plus. L’avantage subsiste, mais il se réduit : il ne vient plus de l’écart de tranche, seulement du fait que l’économie d’impôt de 41 % augmente le capital placé pendant 20 ans, avec des gains taxés à 31,4 %. À 42 879 € d’écart contre 16 479 €, la baisse de tranche à la retraite pèse environ 26 400 € in the result.
Capital or annuity
| Exit | Gross amount | Taxes and levies | Detail | Portion retained |
|---|---|---|---|---|
| Capital spread over 10 years | €322,444 | €97,888 | 72 000 € au barème sur les versements déduits, 25 888 € de prélèvement forfaitaire sur les gains | 69.6% |
| Annuity at 4 % of the capital | €12,898 per year | 4 548 € par an | 3 588 € d’impôt sur le revenu et 960 € de prélèvements sociaux (18,6 % sur 40 % de la rente) | 64.7% |
La rente s’ajoute aux 35 000 € de pensions et reste dans la tranche à 30 %. Elle profite de l’abattement de 10 %, déjà plafonné à 4 439 € : l’abattement complémentaire est de 939 €. Mais elle supporte des prélèvements sociaux sur 40 % de son montant, que les versements déduits retirés en capital ne supportent pas. Le capital conserve donc une part plus grande de chaque euro sorti (69,6 % contre 64,7 %) ; la rente apporte un revenu versé à vie, qui ne dépend d’aucune règle de retrait.
What the €150,000 threshold costs in life insurance
Le montage 1 verse 240 000 € de primes, au-dessus du seuil de 150 000 € : pendant les premières années de rachat, une part des gains passe à 12,8 %. Le surcoût de ce seul effet est de 440 € d’impôt sur le revenu sur l’ensemble de la sortie. Il est faible, parce que l’abattement de 4 600 € absorbe l’essentiel des gains de chaque rachat. Dans le montage 4, l’assurance-vie ne reçoit que 98 400 € de primes : elle reste sous le seuil, et ses gains de 3 380 € par an restent sous l’abattement, donc without income tax. Only the social security contributions of 17.2 % (€5,814) remain due.
4. La combinaison optimale pour un médecin dont la tranche baisse
- The PER first, up to the ceiling. Chaque euro déduit à 41 % revient à 0,41 € d’impôt en moins. Le plafond de 10 % du bénéfice est le point de départ : 12 000 € pour un bénéfice de 120 000 €.
- The tax savings go into life insurance. The €4,920 collected each year is invested in a contract that remains accessible. With €98,400 in premiums over 20 years, it remains below the €150,000 threshold.
- The capital from the PER is withdrawn over several years. La tranche à 30 % laisse 53 077 € par an de marge avec 35 000 € de pensions. 10 retraits de 24 000 € en consomment moins de la moitié.
- Life insurance is redeemed after 8 years, in small installments. A redemption that contains less than €4,600 in gains (€9,200 for a couple) is not subject to income tax.
- La rente vient en complément, pour la part dont le médecin veut un revenu à vie. It retains the 30 % tranche, with social security contributions on a fraction.
Beyond the limits of the PER (Retirement Savings Plan) and life insurance, real estate takes over: see our pages SCPI and LMNP. The other levers are gathered on the page tax exemption.
Frequently asked questions
Le PER est-il toujours meilleur que l’assurance-vie pour un médecin à 41 % ?
Sur le plan fiscal, oui tant que la tranche de la sortie n’est pas plus haute que celle de l’entrée : dans le cas type, le PER laisse 224 557 € contre 181 678 € à effort égal. Il garde un défaut : l’épargne est bloquée jusqu’à la retraite, sauf les cas de déblocage prévus par la loi. L’assurance-vie reste donc la réserve disponible, et la combinaison répartit les deux.
At what premium level does the 7.5 % rate of life insurance stop?
When the total of premiums paid but not reimbursed as capital exceeds €150,000, across all contracts, on December 31 of the year preceding the redemption, the 7.5% % rate applies only to the portion of gains equal to €150,000 divided by these premiums (assuming no premiums were paid before September 27, 2017); the remainder is taxed at 12.8% %.
Should the PER be withdrawn as a lump sum or as an annuity?
Le capital étalé conserve 69,6 % de chaque euro dans le cas type, la rente 64,7 % avec un taux de conversion de 4 % : la rente supporte des prélèvements sociaux sur 40 % de son montant à 67 ans. Le choix dépend aussi du besoin d’un revenu versé à vie. Les deux se combinent : le PER permet un capital, une rente, ou les deux.
What happens if I don't deduct my PER contributions?
There are no savings on the initial investment, but upon withdrawal as a lump sum, the portion corresponding to the undeducted contributions is exempt from income tax and social security contributions. Only the gains are taxed, at a flat rate of 31.4%. This option makes sense when the initial tax bracket is low.
Does the €4,600 allowance for life insurance apply to social security contributions?
No. It only reduces the base subject to income tax. The social security contributions of 17.2% (%) are levied on the entirety of the earnings.
Our position
We start with your profit, your deduction limit, your retirement age, and your expected retirement income bracket. Then, we work with you to determine the allocation between your retirement savings plan (PER) and life insurance, as well as your withdrawal schedule. We receive commissions on contracts taken out through our firm.
Book an exchange with Balmont Conseil
Alexis Sagnier, financial and real estate investment advisor, insurance broker, AMF certified. ORIAS 13003497. Updated on 28/10/2026.
Official sources consulted
- Official Bulletin of Public Finances (BOFiP), BOI-IR-BASE-20-50-20, limits on the deduction of contributions and retirement savings premiums (ceiling for a self-employed worker, carry-forward over five years): bofip.impots.gouv.fr
- BOFiP, BOI-RSA-PENS-30-10-20, Capital retirement benefits (withdrawal from the capital retirement savings plan, deducted and non-deducted contributions, gains, quotient), version of February 17, 2026: bofip.impots.gouv.fr
- BOFiP, BOI-ANNX-000513, summary of the taxation regime for retirement savings plans (annuity payout), version of February 17, 2026: bofip.impots.gouv.fr
- Service-public.gouv.fr, «Retirement savings plan (PER): taxation upon withdrawal» (capital, annuity, flat-rate levy of 31.4 %, taxable portions), verified on October 12, 2026: service-public.gouv.fr
- Service-public.gouv.fr, «Life insurance: taxation of redemptions» (allowance of €4,600 and €9,200, rate of 7.5% and 12.8%, threshold of €150,000, social security contributions of 17.2%), verified on April 15, 2026: service-public.gouv.fr
- Directorate General of Public Finances, "How are the proceeds of life insurance contracts taxed since January 1, 2018?", updated on March 20, 2026: impots.gouv.fr
- BOFiP, BOI-RPPM-RCM-20-15, rate of 12.8 % and reduced rate of 7.5 % (threshold of €150,000 and method of distributing gains): bofip.impots.gouv.fr
- BOFiP, BOI-RPPM-RCM-20-10-20-50, life insurance contract products (partial redemption, annual allowance, order of allocation): bofip.impots.gouv.fr
- Service-public.gouv.fr, «Social security contributions on income from assets and investments» (2026 rate: 18.6 % in general, 17.2 % for life insurance; law no. 2025-1403, article 12): service-public.gouv.fr
- Service-public.gouv.fr, «Income tax: tax brackets and rates 2026» (scale per share, law no. 2026-103 of February 19, 2026): service-public.gouv.fr
- Service-public.gouv.fr, «Declaring retirement pensions» (10% allowance capped at €4,439 per household for 2025 income), verified on April 15, 2026: service-public.gouv.fr
- Directorate General of Public Finances, practical brochure on income tax, "Pensions, retirement benefits and annuities" (retirement savings plan annuities, taxable portions of purchased life annuities): impots.gouv.fr
