Insurance-based retirement savings plan (PER) or securities account-based retirement savings plan (PER): the differences

The individual retirement savings plan (PER) comes in two forms. The bank-based PER, also called an investment-based PER, involves opening a securities account. The insurance-based PER involves joining a group insurance contract. Official sources describe two structural differences: the securities account or the group insurance contract, and the fate of the savings upon the account holder's death. They also mention a characteristic investment vehicle for each form.

This page does not advise on which form to choose. It does not compare fees or performance, nor does it address exit taxation, switching between forms, or the situation of non-residents.

The table of differences

A clarification regarding support lines. The pages you have read mention a characteristic support for each shape. They do not provide a complete list. Do not assume from this table that a support is excluded from any particular shape: verify the supports proposed in the plan presented to you.

Investment units are shares of a portfolio of financial assets. Their value fluctuates, rising or falling. Savings invested in investment units or shares can decrease: there is a risk of capital loss.

What the two forms have in common

Service-public describes the following rules for the individual PER, without distinguishing them according to the form.

• Opening. Since January 1, 2024, you must be 18 years old. There is no upper age limit or professional status requirement.
• Payments. There is no limit on voluntary cash contributions. It is the amount that qualifies for a tax benefit that is capped. The calculation of the deduction limit is explained on a dedicated page.
• Deduction. Before age 70, voluntary contributions are generally tax-deductible. You can opt out of deduction: this option must be declared to the plan administrator with each contribution.
• After 70 years. Payments are still possible, but are no longer tax-deductible. This rule has been in effect since January 1, 2026.
• Transfer. Savings can be transferred to any other PER (Retirement Savings Plan). The transfer is free after at least 5 years of holding the plan. Before that, fees are limited to 1% of the accumulated savings.
• Exit. At retirement, savings can be paid out as a lump sum, as a life annuity, or partially as a lump sum and as an annuity.

This page does not cover switching between formats. If you plan to change formats, please check the terms and conditions before submitting a request.

At death: the clearest difference

For both types of plan, the public service website states that the plan is closed if the holder dies before withdrawing their PER funds. The savings are then paid to the heirs or beneficiaries designated in the contract.

PER bank

According to the French government's public service website, savings and inheritances are included in the estate and taxed according to inheritance law. The French government's economic development agency website (economie.gouv.fr) similarly states that, for a plan opened as a securities account, the savings are included in the estate. The inheritance tax rates are not detailed on this page, which therefore does not provide figures for a bank-based retirement savings plan (PER).

PER insurance

The PER (Retirement Savings Plan) allows you to designate beneficiaries in the event of your death. The sums are taxed according to rules similar to those of assurance-vie, which differ depending on the age of the policyholder.

The BOFiP (Official Bulletin of Public Finances) specifies that the levy is payable by the beneficiary. It describes the €152,500 allowance as a global allowance per beneficiary. It also indicates that the surviving spouse, civil partner, and siblings are not subject to the levy when they are exempt from inheritance tax (articles 796-0 bis and 796-0 ter of the French General Tax Code, cited by the BOFiP).

After age 70, the inheritance tax scale and the distribution of the €30,500 allowance between several beneficiaries are not detailed here: check with the official source (service-public) and on your file.

Numerical example (fictitious profile)

Situation. A 58-year-old business owner has €600,000 in a retirement savings plan (PER). He has designated his two children as beneficiaries, each receiving an equal share. Assumptions: he dies before age 70; the amounts mentioned include any gains; neither beneficiary is exempt from inheritance tax; neither beneficiary has already used their €152,500 allowance on other contracts held by the same deceased; the sum due to each beneficiary is €300,000; the rules described above remain unchanged.

Issue. To measure what the applicable levy on the PER insurance before age 70 represents, and the role of the distribution between beneficiaries in the calculation.

Strategy. Apply the €152,500 allowance to each beneficiary's share, then the 20% tax on the remaining amount up to €700,000, and the 31.25% tax on the portion of the taxable share exceeding €700,000. The same calculation is performed for a single beneficiary.

Result. For two beneficiaries of €300,000 each, the taxable share for each is €300,000 − €152,500 = €147,500. The levy is 20 % × €147,500 = €29,500 per beneficiary, i.e. €59,000 in total.

In the latter case, €700,000 is taxed at 20 %, i.e. €140,000, and €47,500 at 31.25 %, i.e. €14,843.75.

The same capital in a bank retirement savings plan (PER) is not calculated: the government website indicates that it is included in the estate and taxed according to inheritance tax rules, the scale of which is not detailed here. This profile is fictitious. The figures illustrate the mechanism and do not predict your specific situation.

What changes depending on your situation

• The investment options you wish to hold and those offered by the plan. Savings invested in unit-linked funds or equities may decrease.
• The age of the policyholder: threshold of 70 years for the deduction of payments and for the death benefit.
• The number and quality of beneficiaries: the allowance of €152,500 applies to each of them, and some beneficiaries are exempt from the levy.
• The plan fees and transfer conditions can be found in the contract.
• Your choice between deducting and not deducting payments.

This page does not provide the amount in euros that applies to you. No results are guaranteed.