In summary…
The two, in this order: the PER (retirement savings plan) up to the deduction limit, then life insurance for the rest. With €60,000 of taxable profit, the PER deduction limit in 2026 is €6,000 (10 % of the profit) and each payment saves €1,800 tax, in the 30 % bracket. The CARPIMKO pension (the pension fund for paramedical professionals) is approximately €20,200 per year at age 67 in the typical case: withdrawn over 10 years, the portion of contributions deducted is taxed on average at 12.0% instead of 30 %, representing €21,658 less tax on the entire withdrawal. In the typical case (contributions of €6,000 per year for 20 years, return of 3 % per year, calculation assumption), the combination of a PER followed by life insurance leaves €180,176 net after tax at 67 years old, against €154,132 for life insurance alone, that is €26,044 more with equal effort. Life insurance retains its role: at this level of payment, its withdrawals of €4,122 of gains per year remain under the allowance of €4,600, therefore without income tax, and the savings remain available.
1. What the PER does, step by step
The PER (retirement savings plan) is tax-deductible upon contribution and taxable upon withdrawal. Life insurance works in the opposite way: no tax advantage upon contribution, and reduced taxation on gains upon withdrawal. The entire comparison hinges on the difference between the tax bracket upon contribution and upon withdrawal. For a registered physiotherapist, withdrawal is the crucial point: the CARPIMKO pension fund replaces less than 40% of their income, and a modest pension places them in the lower tax brackets.
| 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 30 %, €0.30 per euro paid. The 2026 scale applies 30 %s from €29,580 to €84,577 of income per share, 11 %s from €11,601 to €29,579, and 41 %s from €84,578 to €181,917 (law no. 2026-103, article 4). |
| Entry: ceiling for a self-employed worker | The higher of two amounts: 10 % of the previous year's business income (withheld up to 8 times the annual social security ceiling) or 10 % of this ceiling, This means a minimum of €4,710 for a payment in 2026 and a maximum of €37,680. The income used for calculation is that of the previous year. after deduction of mandatory social security contributions This is the taxable profit. Occupational pension contributions already deducted from the 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. The deduction limit for a physiotherapist is €60,000
With €60,000 of taxable profit in 2025, 10 % yield €6,000, above the floor of €4,710 (10 % of €47,100, the 2025 social security ceiling). The deduction limit for a payment in 2026 is therefore €6,000. The point to check before paying is the definition of profit: the BOFiP (French tax authority) uses earned income. after deduction of social security contributions. A physiotherapist earning €60,000 before social security contributions has a lower taxable profit, and their taxable income is closer to the minimum threshold of €4,710. Taxable profit is shown on the previous year's tax return. In this case, we'll use €60,000 as the taxable profit.
The €6,000 payment leaves €54,000 of taxable income, which is €24,421 above the lower end of the tax bracket at €29,579 (30 %). Therefore, the entire deduction is applied at the 30 % threshold. The same reasoning applies to any taxable income between €35,579 and €84,577.
3. 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. |
4. Calculation based on a physiotherapist with a profit of €60,000
| Calculation assumption | Value retained |
|---|---|
| Physiotherapist | 47 years old, under contract, single (1 share), taxable profit of €60,000 (after social security contributions), no other income: marginal tax bracket at 30% (%), and income remains above €29,579 after deduction |
| Payments | €6,000 per year on the PER for 20 years, from age 47 to 67, up to the deduction limit (10 % of €60,000), 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 | Calculated in the year of payment, without delay; it amounts to €1,800 per year (2026 scale, calculated before and after deduction) |
| 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 | A pension of €20,200 per year: base pension €11,992, supplementary pension €6,945, old-age social security benefit (flat-rate portion) €1,286, for 35 years of contributions on €60,000 of professional income (calculation assumption: supplementary pension points are proportional to contributions, with a maximum of 30 points). A 10% tax allowance of €2,020 (%) results in €18,180 taxable income and €724 tax before any withdrawal from the PER (Retirement Savings Plan). This pension is calculated on €60,000 of income before contributions, therefore slightly lower than the pension based on a taxable income of €60,000: the sensitivity is tested below. |
| 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. A 47-year-old self-employed, single, contracted physiotherapist has €60,000 of taxable profit, an expected CARPIMKO pension of €20,200 per year at age 67 (34 % of his income) and €6,000 per year to save until age 67.
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. He compares four investment strategies. Strategy 1: €6,000 per year in life insurance. Strategy 2: €6,000 per year in a PER (French retirement savings plan), which gives him €1,800 in tax savings each year (€6,000 × 30 %) and costs him only €4,200. Strategy 3: €4,200 per year in life insurance, to compare with Strategy 2 on an equal footing. Strategy 4: €6,000 in the PER, then the €1,800 tax savings invested in life insurance, resulting in a net annual cost of €6,000, like Strategy 1. At age 67, he withdraws the capital from the PER over 10 years. The calculation applies the 2026 tax brackets (Law No. 2026-103, Article 4) before and after deductions.
Result. Assembly 4 leaves €180,176 net after tax, versus €154,132 for assembly 1, i.e. €26,044 more with the same effort. The PER alone leaves €133,937 for €4,200 of effort per year, compared to €107,892 for the same amount in life insurance.
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 | €6,000 | €161,222 | €41,222 | €7,090 | €154,132 |
| 2. PER alone | €4,200 | €161,222 | €41,222 | €27,286 | €133,937 |
| 3. Life insurance alone, same effort as the PER | €4,200 | €112,856 | €28,856 | €4,963 | €107,892 |
| 4. PER, then tax savings through life insurance | €6,000 | €209,589 | €53,589 | €29,413 | €180,176 |
Details of the PER lump sum withdrawal
| Item | Base | Rate | Amount |
|---|---|---|---|
| Payments deducted, portion in the 11 % tranche | €113,990 | 11% | €12,539 |
| Payments deducted, portion in the 30% tranche % | €6,010 | 30% | €1,803 |
| Withdrawals (single flat-rate deduction) | €41,222 | 31.4% | €12,944 |
| Total at exit | €161,222 | 16.9 % of capital | €27,286 |
The pensions leave the physiotherapist with €18,180 in taxable income, which is €11,399 below the top of the tax bracket at 11% (€29,579). Each year of retirement adds €12,000 in deducted contributions: €11,399 is taxed at 11% and €601 at 30%, resulting in €1,434 in tax per year and an average of 12%. The total (€30,180) remains below €84,577. Withdrawn in a single year, the same €120,000 would incur €39,731 in tax instead of €14,342, not including the income averaging factor, which we have not modeled. Spreading the output remains the primary lever of the PER : with a modest pension, he manages to get out in the two lower brackets.
What if the pension was higher than expected?
| Annual pension at age 67 | Taxable income before exit | Average tax rate on withdrawals | PER alone, net after tax | Difference with life insurance at equal effort |
|---|---|---|---|---|
| €20,200 (typical case) | €18,180 | 12.0% | €133,937 | €26,044 |
| €25,000 (hypothetical) | €22,500 | 18.8% | €125,729 | €17,836 |
| €30,000 (hypothetical) | €27,000 | 25.9% | €117,179 | €9,286 |
| €35,000 (hypothetical) | €31,500 | 30.0% | €112,278 | €4,386 |
The higher the pension, the higher the tax bracket for withdrawals from the PER (Retirement Savings Plan), and the smaller the difference in tax brackets between the initial and final contributions. At a pension of €35,000, withdrawals are taxed at the same rate as contributions, and the benefit then comes solely from reinvesting the tax savings. A physiotherapist who maintains a part-time job or rental income in retirement falls into this category: with €54,000 in other taxable income per year, the tax on deducted contributions rises to €36,000, exactly the same as the initial savings achieved over 20 years (€36,000). The PER alone leaves €112,278 compared to €107,892 for life insurance with the same level of effort, a difference of €4,386. With a difference of €26,044 in the typical case versus €4,386, The reduction in the retirement bracket costs approximately €21,658. in the result. The advantage of the PER remains in all the cases tested.
Capital or annuity
| Exit | Gross amount | Taxes and levies | Detail | Portion retained |
|---|---|---|---|---|
| Capital spread over 10 years | €161,222 | €27,286 | €14,342 according to the tax scale on deducted payments, €12,944 flat-rate levy on gains | 83.1% |
| Annuity at 4 % of the capital | €6,449 per year | €1,118 per year | €638 in income tax and €480 in social security contributions (18.6 % out of 40 % of the annuity) | 82.7% |
The annuity is added to the €20,200 pension and remains in the 11th tax bracket (taxable income of €23,984). It benefits from the 10th tax allowance, already capped at €4,439: the additional allowance is €645. However, it is subject to social security contributions on 40ths of its amount, which are not levied on the deducted contributions withdrawn as a lump sum. The lump sum therefore retains a larger share of each euro withdrawn (83.1ths compared to 82.7ths); the annuity provides a lifetime income, which is not subject to any withdrawal rules. With a pension of €20,200, or 34 % of the income, an annuity of €6,449 per year adds €5,331 net of life income: the total, €26,649 gross, remains far from the €42,000 which represents 70 % of €60,000.
Life insurance and the €4,600 allowance
Scheme 1 pays out €120,000 in premiums, below the €150,000 threshold: all gains remain at the 7.5% % rate after 8 years, after the €4,600 allowance per redemption. The €41,222 in gains, redeemed in 10 installments, yields €4,122 in annual gains, after the allowance. no income tax. Only social security contributions of 17.2% (7,090 euros) remain due. Life insurance is therefore very efficient at this level of investment; the difference with the PER (Retirement Savings Plan) does not stem from a flaw in life insurance, but from the fact that the PER converts 1,800 euros of tax at 30% into invested capital each year. Beyond approximately 6,695 euros in annual contributions, the withdrawals exceed the allowance, and tax becomes payable. In scenario 4, the life insurance receives only 36,000 euros in premiums: 1,237 euros in gains per year, and no income tax either.
5. The combination for a physiotherapist whose salary bracket is decreasing
- The PER first, up to the ceiling. Each euro deducted at 30 % equates to €0.30 less tax. The 10 % profit threshold is the starting point: €6,000 for a profit of €60,000. The floor of €4,710 applies to all self-employed workers, even with lower profits.
- The tax savings go into life insurance. The €1,800 collected each year is invested in a contract that remains accessible. With €36,000 in premiums over 20 years, it remains well below the €150,000 threshold.
- The capital from the PER is withdrawn over several years. The 11 % bracket leaves €11,399 per year of leeway with a €20,200 pension: 10 withdrawals of €12,000 fill this bracket, and the remainder is taxed at 30 %. The more spread out the withdrawals, the larger the portion taxed at 11 %.
- 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.
- The annuity is a supplement, for the portion from which the physiotherapist wants a lifetime income. It remains in the 11 % bracket, 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
Is a PER (Retirement Savings Plan) still better than life insurance for a physiotherapist at 30 %?
From a tax perspective, yes, in the cases tested: the PER alone leaves €133,937 compared to €107,892 with the same effort in the typical scenario, and €112,278 compared to €107,892 with a pension of €35,000. It does have one drawback: the savings are locked until retirement, except in cases of early withdrawal provided for by law. Life insurance therefore remains the available reserve, and the combination splits the two.
What is the PER deduction limit for a physiotherapist with €60,000 in profit?
The higher of 10 % of the previous year's taxable profit (€6,000) and 10 % of the previous year's social security ceiling (€4,710) is for payment in 2026. The profit considered is that after deduction of mandatory social security contributions. Any unused ceiling can be carried forward to the following five years.
What if the physiotherapist is married, with only one income?
Taxable income is divided into two parts: €30,000 per part for €60,000 of income. A payment of €6,000 is then partially deducted in the 11th tax bracket: the savings fall to €820 instead of €1,800 (13.7% of the payment). The calculation of the tax bracket always precedes the choice of the amount paid, and life insurance, whose allowance doubles to €9,200, becomes more significant.
Should the PER be withdrawn as a lump sum or as an annuity?
The spread capital retains 83.1% of each euro in the typical case, while the annuity retains 82.7% with a conversion rate of 4%: the annuity is subject to social security contributions on 40% of its amount at age 67. The choice also depends on the need for a lifetime income. The two can be combined: the PER allows for a lump sum, an annuity, or both.
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 taxable income, your deduction limit, your CARPIMKO points statement, your retirement age, and your expected retirement income bracket. Then, we work with you to determine the allocation between your PER (Retirement Savings Plan) and life insurance, as well as your withdrawal schedule. We do not draft any documents or provide legal or accounting advice: calculating your income and managing your accounts are the responsibility of your accountant. We receive commissions on contracts purchased 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 deduction of contributions and retirement savings premiums (ceiling for a self-employed worker, income retained after contributions, 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), verified on June 30, 2026: 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), 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
- CARPIMKO, "My contributions adapt to my income" (2026 contributions for basic, supplementary, old-age and disability-death benefits): carpimko.com
- CARPIMKO, "How is my self-employed pension calculated?" (2026 point values, points per year, reduction): carpimko.com
- National Old-Age Insurance Fund for the Liberal Professions (CNAVPL), "Understanding your retirement" (basic scheme points calculated pro rata to the contribution, 2026 point value, full rate at age 67): cnavpl.fr
