In summary…
A self-employed plumber or electrician, affiliated with the Social Security for the Self-Employed (SSI), who releases €45,000 of profit per year for 37 years affects approximately €20,500 gross per year (approximately €1,710 per month) at age 67: €14,330 basic pension and €6,190 supplementary pension, i.e. 46% of its profit. To recover 70 % of its profit, approximately €11,000 per year, representing a capital of approximately €191,000 and savings of approximately €9,600 per year for 15 years (€800 per month). The minimum contributory pension does not apply at this income level. The maximum deduction for a retirement savings plan (PER) is €4,710 in 2026. : under our assumptions, a payment at the ceiling saves €1,413 in tax (30% tranche %), and PER plus life insurance leaves €16,090 more at age 67 than life insurance alone.
1. Plumber or electrician: which scheme, what contributions in 2026?
Plumbers and electricians practice a regulated trade, requiring a diploma (vocational certificate, professional diploma, or equivalent qualification) or three years of experience certified by the Chamber of Trades (see service-public.gouv.fr fact sheets on plumbers and electricians). Their social security coverage depends on their mode of practice: the Social security for the self-employed (SSI) for the sole proprietor and the majority shareholder of a single-member limited liability company (EURL) or a limited liability company (SARL), the general scheme for the manager treated as an employee (president of a SAS or SASU). The case discussed here is that of the sole proprietor. Contributions are paid to the Urssaf (French social security agency), and the pension is paid by the French retirement insurance system. Three tiers are calculated, each in its own way: the basic pension (a share of the average income, prorated to the quarters), the supplementary pension for the self-employed (points converted into pension) and the’disability-death (a life insurance policy, without a retirement pension).
| Floor | 2026 Membership Fee | This generates the rights |
|---|---|---|
| Basic pension | 17.87 % of the contribution base up to the annual Social Security ceiling (€48,060), then 0.72 % beyond that. Minimum contribution: €967 | A maximum of four quarters per year. Pension = 50 % × average annual income × validated quarters ÷ reference period |
| Supplementary pension | 8.1 % up to €44,286, then 9.1 % up to €192,240 | Points: membership fee ÷ €21.726. Each point pays out €1.347 per year |
| Disability-Death | 1.30 % of the base up to €48,060 | Disability pension of 30 % or 50 % of the average annual income of the 10 best years, depending on the category |
The base is the profit minus one flat-rate allowance of 26 %, without deduction of social security contributions: this is the reform of the social security contribution base, applicable to contributions from 2026. For €45,000 of profit, the base is €33,300, Below the thresholds of €44,286 and €48,060, only the rates of the first bracket apply. The basic pension contribution is €5,951, above the threshold of €1,289 which validates the four quarters of the year (Cnav circular 2025-33); the contributory income also exceeds the €7,212 required for four quarters.
| Contribution of €33,300 | Rate | Amount per year |
|---|---|---|
| Basic pension | 17.87% | €5,951 |
| Supplementary pension | 8.1% | €2,697 |
| Disability-Death | 1.30% | €433 |
| Total retirement and disability-death benefits | 20.2 % of the profit | €9,081 |
One point of divergence between the sources: the service-public.gouv.fr website and the French National Retirement Insurance Fund (Assurance retraite) circular of December 22, 2025, set the limit for the first bracket of supplementary retirement benefits at €44,286; an older circular refers to a Social Security ceiling. In this case, the contribution base does not exceed either source: the result remains the same.
2. The career considered and the calculation of the pension
A career hypothesis, written down in black and white. The plumber was born in 1974. He started his own business at 30, will be 52 in 2026, and will retire at 67: 22 years of contributions already paid, 15 more to come, totaling 37 years and 148 validated quarters. His profit is €45,000 each year, in constant euros. He has no other career history (no years as an employee, no purchased quarters): if he had worked as an employee before starting his own business, his actual pension would be higher and the difference smaller, which only his career record can determine. For his generation, the legal retirement age is 64 and the reference period is 172 quarters.
- Automatic full rate : has 67 years old, regardless of the number of quarters.
- Before age 67 : each missing quarter compared to the required 172 deducts 1.25% basic pension, up to a limit of 20 quarters. One quarter beyond the legal age and the required duration adds 1.25 % (bonus).
- Years selected The basic pension is calculated on the average of the best years of contributory income, capped each year at the Social Security ceiling, up to a maximum of 25 years depending on the generation. The income in the typical case is constant: the number of years taken into account does not change the result.
| Floor | Calculation | Gross annual pension |
|---|---|---|
| Basic pension | 50 % × €33,300 × 148 quarters ÷ 172 | €14,327 |
| Supplementary pension | 124.2 points per year × 37 years = 4,594 points × €1.347 | €6,188 |
| Total | €1,710 per month | €20,514 |
The pension represents 45.6% of the profit, while the craftsman contributed €9,081 per year for retirement and disability/death benefits. The basic pension is reduced proportionally: with 37 years of service instead of 43, i.e., 148 quarters out of 172, it would be €16,650 with a full career, or €2,323 more per year. Supplementary pension points are not rounded in this calculation (calculation assumption). A benchmark based on official values: one point is acquired for €21.726 of contributions and pays €1.347 per year, i.e. 6.2 % per year The amount contributed is repaid as a pension after approximately 16 years. The point provides a lifetime annuity, but no capital to be passed on.
In the alternative scenario at age 64, the legal retirement age for this generation, the career would span 34 years and 136 quarters, meaning 36 quarters are missing. The reduction is capped at 20 quarters, or 25 quarters (%): the basic pension would fall to €9,874 instead of €14,327, a decrease of €4,453 per year, not including the reduction in the supplementary pension, the rate of which is not shown here. The standard scenario assumes retirement at age 67.
3. The minimum contributory pension: not at this income level
The minimum contributory pension is an increase to the basic pension for small pensions, applicable to both self-employed workers and salaried employees. In 2026, for retirement at age 67 without the required number of years of contributions, its minimum is €756.29 per month (€9,075 per year), reduced proportionally to the number of quarters of contributions held. €7,809 for 148 quarters out of 172. For retirement before age 67 with the required contribution period, the minimum pension rises to €10,847.22 per year. It is reduced when the total pensions exceed €1,410.89 per month, or €16,931 per year (service-public.gouv.fr, January 2026).
The basic pension in the typical case, €14,327, is higher than these minimums, and the total pensions, €20,514, exceed the ceiling of €16,931: No additional payment is made.. Under the same assumptions (37-year career, constant income), the basic pension would only fall below the prorated floor of €7,809 for a profit of less than approximately €24,500 per year, subject to the other conditions outlined in the information sheet. The minimum contributory pension protects low incomes; at €45,000 of profit, the difference must be made up through savings.
4. How much to achieve: three goals, three savings efforts
The revenue target of 70 % is the benchmark for the series of items. The table shows the effort for three levels.
| Objective | Target annual income | Missing per year | Capital at 67 years old | Savings per year for 15 years | Per month | Profit share |
|---|---|---|---|---|---|---|
| 50 % of the profit | €22,500 | €1,986 | €34,577 | €1,727 | €144 | 3.8% |
| 60 % of the profit | €27,000 | €6,486 | €112,937 | €5,640 | €470 | 12.5% |
| 70 % of the profit | €31,500 | €10,986 | €191,296 | €9,554 | €796 | 21.2% |
The method is identical to that of the other articles in the series: the shortfall is covered over 25 years, from age 67 to 92; the capital is what finances this flow at a return of 3,130 during retirement; the savings are what builds it up over 15 years at 4,130 per year, with payments made at the end of the year. These returns are calculation assumptions, not promises. The amounts are in constant euros, without inflation. Since there are only 15 years left to save, the annual effort is greater than for someone with 20 years.
5. The PER with a €45,000 profit: a minimum ceiling, but a 30% bracket (%)
For a self-employed worker, the deduction limit is the higher of two amounts : 10 % of the previous year's taxable profit (capped at 8 times the Social Security ceiling) or 10 % of the previous year's Social Security ceiling. For payment in 2026, the minimum is €4,710 and the maximum of €37,680 (BOFiP, BOI-IR-BASE-20-50-20). With a taxable profit of €35,919 (as in the example below), 10 %s amount to only €3,592: this is the minimum that applies. The €4,710 ceiling represents 10.5 % of the profit and covers 49 % of the €9,554 per year effort needed to reach 70 %.
Retirement savings contributions already deducted from profits, particularly those from a former Madelin contract, reduce this limit. Madelin contracts have not been marketed since October 1, 2020: new contributions are made through the individual PER (Retirement Savings Plan). The unused portion of the limit is carried over to the following five years (BOFiP of August 10, 2026). Details are available on our page PER deduction limit.
Tax savings depend on the tax bracket, not the ceiling. Calculation assumption : taxable income of €35,919, i.e., the profit less only the retirement and disability-death contributions from the table above, for a single person with one share. The 2026 tax scale applies 0 % up to €11,600, 11 % from €11,601 to €29,579 and 30 % from €29,580 to €84,577 (law no. 2026-103, article 4).
| 2026 scale bracket | Income in the bracket without PER | Income in the bracket with €4,710 from the PER (Retirement Savings Plan) | Tax without a retirement savings plan (PER) | Tax with PER |
|---|---|---|---|---|
| 0 % (up to €11,600) | €11,600 | €11,600 | €0 | €0 |
| 11 % (€11,601 to €29,579) | €17,979 | €17,979 | €1,978 | €1,978 |
| 30 % (€29,580 to €84,577) | €6,340 | €1,630 | €1,902 | €489 |
| Total | €35,919 | €31,209 | €3,880 | €2,467 |
A payment of €4,710 reduces the tax from €3,880 to €2,467: The savings amount to €1,413, This represents 30% of the payment, and the actual effort of €3,297. The entire payment remains within the 30% bracket as long as taxable income exceeds €34,289. This margin depends on other deductible contributions (health insurance, family allowances, deductible general social contribution), which lower the actual taxable income: the table below shows the effect.
| Taxable income (assumption) | Tax savings for €4,710 paid | Average savings rate |
|---|---|---|
| €35,919 | €1,413 | 30% |
| €34,000 | €1,358 | 29% |
| €32,000 | €978 | 21% |
| €30,000 | €598 | 13% |
For example, with a taxable income of €32,000, only €2,421 of the payment is deducted at 30 % and the remainder at 11 %: the saving is €978. The exact taxable income can be found on the tax assessment notice; the accountant confirms it before any payment is made.
6. At retirement: the PER withdrawal falls back to 11 %
| PER outlet mode | Rule in 2026 |
|---|---|
| Capital: payments deducted | Taxed according to the income tax scale, without the 10% allowance for pensions and without social security contributions. |
| Capital: gains | Single flat-rate levy of 31.4% : 12.8 % of tax and 18.6 % of social security contributions. |
| Annuity: payments deducted | Taxed as a retirement pension, with the 10% allowance. Social security contributions are applied to a portion of the annuity. |
| Payments not deducted | Option chosen at each payment: the capital corresponding to the payments is exempt from tax and social security contributions, the gains remain at 31.4 %. |
At 67, the plumber receives €20,514 in pension payments. After a 10% deduction (€2,051, with a minimum of €454 per pensioner and a maximum of €4,439 per household), his taxable income is €18,463, resulting in €755 in tax. He has [amount missing] left. €11,116 per year before reaching the 30 % bracket. Deducted payments withdrawn over 10 years (€7,065 per year) therefore remain entirely within the 11 % bracket: 30 % at the input, 11 % at the output. It is the difference in the tax bracket that makes the PER (Retirement Savings Plan) attractive in this case.
7. PER plus life insurance, or life insurance alone: the calculation with the same net effort
Life insurance gives nothing at the start, remains available and reduces the tax on gains after eight years: allowance of €4,600 on gains for a single person (€9,200 for a couple), rate of 7.5 % beyond as long as the premiums not reimbursed do not exceed €150,000, plus 17.2 % of social levies on the gains (service-public.gouv.fr).
| Calculation assumption | Value retained |
|---|---|
| Artisan | 52 years old, single (1 tax unit), sole proprietorship, €45,000 annual profit before social security contributions, stable; no other income, no existing voluntary retirement contract, 2026 PER (French retirement savings plan) ceiling intact |
| Objective | 70 % of the benefit, i.e. a net effort of €9,554 per year for 15 years, from age 52 to 67 (section 4) |
| Yield | 4.% per year, net of fees, the same for the PER and life insurance; payments at the end of the year. Calculation assumption: no return is guaranteed |
| Euros | Constants: 2026 tax brackets, ceilings, rates and levies retained until exit |
| Option 1: Life insurance alone | Bonus of €9,554 per year, contract of more than 8 years upon exit |
| Option 2: PER plus life insurance | PER at the maximum of €4,710 per year (savings of €1,413, net effort of €3,297) and life insurance premium of €6,257 per year: same net effort of €9,554 |
| Exit | 10 equal annual withdrawals from age 67 to 76, with no return after age 67 (assumption isolating the effect of tax); pensions of €20,514, or €18,463 taxable after allowance. |
| Assembly | Capital at 67 years old | Tax and charges on exit | Net after tax |
|---|---|---|---|
| 1. Life insurance alone | €191,296 | €8,404 | €182,891 |
| 2. PER at the ceiling | €94,311 | €15,201 | €79,110 |
| 2. Supplementary life insurance | €125,278 | €5,406 | €119,872 |
| 2. Total PER plus life insurance | €219,589 | €20,607 | €198,982 |
The details: In arrangement 2, the PER (Retirement Savings Plan) withdraws €70,650 in contributions, taxed at 11% (7,772 euros), and €23,661 in gains at 31% (7,430 euros). The life insurance gains (€31,430, or €3,143 per year in withdrawals) remain below the €4,600 allowance: no income tax, only €5,406 in social security contributions. In arrangement 1, the gains reach €47,993, or €4,799 per year: the allowance is exceeded, resulting in €149 in income tax in addition to the €8,255 in social security contributions. With the same net effort, option 2 leaves €16,091 more at age 67. The gain comes from the tax saving at 30 % on entry, which finances a PER payment greater than the actual effort.
| Net annual return after expenses (assumption) | Montage 2, net at 67 years old | Montage 1, net at 67 years old | Advantage of assembly 2 |
|---|---|---|---|
| 2% | €176,017 | €161,444 | €14,573 |
| 4% | €198,982 | €182,891 | €16,091 |
| 6% | €225,906 | €206,288 | €19,617 |
Two limitations. The PER (Retirement Savings Plan) is locked until retirement, except in cases of early withdrawal permitted by law, whereas life insurance allows withdrawals at any time: for a self-employed tradesperson whose business fluctuates, this flexibility is important. And the advantage depends on the income bracket: if taxable income fell to €32,000, the savings would only be €978 (net effort of €3,732), and the difference would be reduced. Contributions to the PER are managed annually with an accountant.
Typical case
Situation. A plumber who set up his business in Lyon at age 30, now 52, single, with no children, runs his own business. His annual profit is €45,000 and remains stable. He will retire at 67 after 37 years of contributions and 148 quarters of contributions, with no further career contributions. The 2026 values are fixed and the amounts are in constant euros.
Issue. He relies on his pension for "about half" of his income. The calculation gives €20,514 per year, or 45.6% of his benefit: €14,327 in basic pension and €6,188 in supplementary pension. The minimum contributory pension does not apply. To recover 70% of his income, i.e., €31,500, he is missing €10,986 per year, representing a capital of €191,296 at age 67 and savings of €9,554 per year (€796 per month, 21.2 % of the profit) for 15 years. Its PER ceiling is €4,710.
Strategy. He contributes €4,710 annually to his PER (retirement savings plan), at the legal minimum limit, and €6,257 annually to his life insurance policy (€521 per month). His net contribution is €9,554 per year: €3,297 to the PER after €1,413 in tax savings, and the remainder to his life insurance policy. He has his taxable income confirmed by his accountant before each contribution and keeps the unused portion of the contribution limit, which can be carried forward for five years (BOFiP BOI-IR-BASE-20-50-20).
Result. At 67, the PER plus life insurance package leaves him €198,982 net, compared to €182,891 for the same net savings in life insurance alone, i.e. €16,091 Furthermore, the tax savings from the PER amount to €1,413 per year, at the rate of 30 % of the 2026 scale (law no. 2026-103, article 4); its withdrawals are taxed at 11 %.
This calculation is an order of magnitude. It freezes the 2026 values over the entire career, uses the contributory income in constant euros, applies the 26% reduction (%) to the entire career, and assumes the indicated returns. It does not take inflation into account. It suffices to state the following: The social security system for the self-employed does not replace your standard of living, and with €45,000 in profit, the PER (retirement savings plan) ceiling covers less than half of the effort..
8. Other levers for the rest of the effort
- Rental property : supplementary income, with the status of non-professional furnished rental provider to limit taxes on rental income.
- Shares in real estate investment companies : exposure to real estate without management, see our dedicated page.
- Selling the business or customer base upon retirement The sale price can finance part of the capital to be raised. tax optimization solutions They are chosen according to the tax bracket.
- Disability-death : the disability pension is 30 % (category 1) or 50 % (category 2) of the average annual income of the 10 best years, i.e. 9,990 € or 16,650 € per year in the typical case; supplementary insurance is compared to these amounts.
Frequently asked questions
How much does a self-employed plumber or electrician earn who makes €45,000 per year?
After a 37-year career with €45,000 in earnings, approximately €20,500 per year, or about €1,710 per month: €14,327 in basic pension and €6,188 in supplementary pension, representing 46% of the earnings. The 2026 values are fixed, in constant euros, and the career is a calculation assumption.
At what age does a craftsman receive his full pension?
At age 67, regardless of the number of quarters of contributions. Before age 67, a full pension is obtained with 172 quarters for those born from 1966 onwards. Each missing quarter reduces the basic pension by 1.25 times the previous quarter, up to a maximum of 20 quarters. The legal retirement age is 64 for those born from 1969 onwards.
Can a plumber or electrician receive the minimum contributory pension?
Not at this income level. For retirement at 67 without the required contribution period, the 2026 minimum pension on the service-public.gouv.fr website is €756.29 per month, reduced proportionally to the number of quarters worked, i.e., €7,809 per year for 148 quarters out of 172. The basic pension in the typical case, €14,327, is higher than this minimum: no increase is paid.
How much will a craftsman's pension contributions cost in 2026?
For a profit of €45,000 and a base of €33,300 after the deduction of 26 %: €5,951 for basic retirement (17.87 %), €2,697 for supplementary retirement (8.1 %) and €433 for disability-death (1.30 %), i.e. €9,081 per year.
Is the PER sufficient to bridge the gap to €45,000 of profit?
No. The deduction limit is €4,710 in 2026 (the legal minimum, as 10% of taxable income is less than this amount), while the effort required to reach 70% of taxable income is approximately €9,554 per year over 15 years. Under our assumptions, the tax savings are €1,413 at a rate of 30%, and the PER (Retirement Savings Plan) is combined with life insurance.
Our position
We start with your pension statement and contribution statements, not an average, and we tailor your savings plan to your actual income and the number of years you have left to work. We do not draft any documents or provide legal or accounting advice: your accountant will validate the taxable income and deductions. We measure the difference between your pension and your current income, then we compare the PER (Retirement Savings Plan) and life insurance to your tax bracket, both now and in retirement. 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
- Service-Public Entreprendre, "Plumber: conditions of access and practice in France" (regulated craft activity, social protection according to the method of practice): entreprendre.service-public.gouv.fr
- Service-Public Entreprendre, "Electrician: conditions of access and practice in France" (regulated craft activity, social protection according to the method of practice): entreprendre.service-public.gouv.fr
- Service-Public Entreprendre, "Pension scheme for the self-employed" (2026 rate, calculation of basic pension, reference period, legal age): entreprendre.service-public.gouv.fr
- Public Service for Entrepreneurship, "Reform of the social security contribution base for the self-employed" (reduction of 26 %): entreprendre.service-public.gouv.fr
- Public Service, "Retirement Insurance" (minimum contributory pension 2026): service-public.gouv.fr
- Retirement insurance, Cnav circular 2025-31 of December 22, 2025 (service value €1.347 and acquisition value €21.726 per point, contribution ceiling of €44,286): legislation.lassuranceretraite.fr
- Retirement Insurance, Cnav circular 2025-33 of December 23, 2025 (validation of quarters for self-employed individuals in 2026): legislation.lassuranceretraite.fr
- BOFiP, BOI-IR-BASE-20-50-20, limits on the deduction of retirement savings contributions: bofip.impots.gouv.fr
- Public Service, "Retirement savings plan" (single flat-rate levy of 31.4 %, lump sum payout): service-public.gouv.fr
- Service-Public, "Life insurance: taxation of withdrawals": service-public.gouv.fr ; «10% reduction on pensions»: service-public.gouv.fr
- Public Service, "Income Tax Scale 2026": service-public.gouv.fr ; Law No. 2026-103 on Finance for 2026, Article 4; Annual Social Security ceiling 2026: €48,060; 2025: €47,100.
