Retirement savings plan (PER) or assurance-vie: compare taxation and payouts in 2026

The PER (Retirement Savings Plan) and assurance-vie do not address the same issue. Voluntary contributions to a PER are tax-deductible, up to a limit, but the savings are only accessible before retirement in specific cases. Assurance-vie allows withdrawals at any time and contributions without any limit, with taxation depending on the contract's age.

This page compares the rules. It doesn't tell you which one to choose: that depends on your current and future tax rates, and your liquidity needs. Depending on the investment vehicles chosen (unit-linked funds, stocks), savings invested in either product carry a risk of capital loss.

It does not cover taxation on death, the rate of social security contributions on assurance-vie, Luxembourg contracts, non-residents or the duration of the carryover of unused ceilings.

The comparison table

The PER simulator or assurance-vie The website illustrates these mechanisms. It does not replace the analysis of your case.

At the entrance: the deduction

For the PER (Retirement Savings Plan), the tax administration's website states that contributions "are deductible from total income." Self-employed workers can opt for a deduction from their professional income.

The deduction limit for 2026 is calculated based on 2025 business income, net of professional expenses. It is equal to 10% of this income, with a maximum of €37,680 and a minimum of €4,710. Service-public specifies that this amount is reduced by certain elements, such as employer contributions. The detailed calculation is explained on the dedicated page for the deduction limit.

Two rules supplement this ceiling:

• From the age of 70, payments are no longer tax-deductible. The BOFiP (French Official Tax Bulletin) states that these contributions "are no longer deductible when the plan holder is seventy years of age or older." This rule has been in effect since January 1, 2026. Contributions to these plans remain possible.
• The deduction is optional. For individual retirement savings plans (PER), the option to waive the tax deduction must be declared to the plan administrator at the time of each contribution (service-public.fr). The BOFiP (French tax authority) applies to PERECO, PERO, and PERIN plans for this option. It changes the tax treatment of withdrawals (see below).

The duration of the carryover of an unused allowance is not given here: the official sources consulted differ, and the rule has been modified by the Finance Act for 2026. Check it before paying.

For assurance-vie, the official pages cited describe payments with no limit on the amount, and without deduction of income upon entry. Therefore, this is not included in the comparison.

Availability: the point that separates the two products

Assurance-vie. economie.gouv.fr indicates that withdrawals are allowed at any time. Taxation then depends on the contract's age.

The PER. Service-public.gouv.fr specifies that savings can be withdrawn early, in the form of a single payment, "only in the following cases." The list includes, in particular, the death of a spouse or civil partner, disability, excessive debt, and the purchase of a primary residence. A dedicated webpage provides further details on this list.

For primary residences, the rights resulting from mandatory contributions remain locked. According to the French government's public service website, savings from mandatory contributions to a company retirement savings plan (PER) are paid out only as an annuity. If the monthly annuity amount does not exceed €110, it can be converted into a lump sum, by mutual agreement between the insurer and the beneficiary.

The tax treatment of early exit for the main residence is not addressed here: it must be checked before any application.

On the way out: taxation

PER, capital exit

Taxation depends on the origin of the withdrawn funds:

• Payments deducted. The corresponding capital portion is taxed as a pension, according to the progressive income tax scale, without the 10% allowance (BOFiP, BOI-RSA-PENS-30-10-20). No social security contributions are added.
• Products. They are subject to a flat tax rate: 12.8% of income tax, totaling 31.4% in 2026, plus 18.6% of social security contributions. The option to use the progressive tax scale is available.
• Payments not deducted. The corresponding share of capital is exempt from income tax and social security contributions.

PER, annuity payout

Social security contributions are applied to a portion of the annuity, at a rate of 18.6 % for annuities paid from January 1, 2026.

Assurance-vie, buyback

Only the winnings are taxed. For bonuses paid since September 27, 2017:

The rate of 7.5 % depends on the total amount of premiums not refunded as capital, assessed across all your contracts with regard to a threshold of €150,000.

Social security contributions on assurance-vie are not quantified here. The official pages we consulted give different rates (17.2% or 18.6%, with exceptions depending on the contract). We cannot take a definitive stance: verify the rate applicable to your contract before making a decision.

Inheritance

economie.gouv.fr presents assurance-vie as a tool for transferring assets and recommends taking the time to draft the beneficiary clause. The tax implications upon death for both products are not addressed here.

Numerical example (fictitious profile)

Situation. A female business owner earned €200,000 in business income in 2025, net of professional expenses. She is single (one share of the family quotient) and a tax resident of France. In 2026, she has €20,000 available. Assumptions: her net taxable income before deductions is €200,000, with no other income or allowances; no other payments or employer contributions reduce her tax-deductible limit; assurance-vie premiums are under €150,000, and she has no other contracts; rules remain unchanged until her retirement.

Issue. Compare, based solely on income tax, €20,000 paid into a PER and €20,000 paid into a assurance-vie policy.

Strategy. Calculate the maximum contribution limit, then the income tax on entry and exit for each product. The capital is withdrawn in a single payment, with €10,000 in proceeds (calculation assumption, without projected returns). The assurance-vie policy is redeemed after 8 years. The tax-free withdrawal rate is unknown: four illustrative rates are tested.

Result.

The deduction limit is 10 % × €200,000 = €20,000, between the minimum of €4,710 and the maximum of €37,680. The €20,000 payment is therefore fully deductible.

Upon entry, net taxable income decreases from €200,000 to €180,000. Using the tax brackets applicable to 2025 income (public service F1419: 41 % from €84,578 to €181,917; 45 % above that), €18,083 of the deducted portion would have been taxed at 45 % and €1,917 at 41 %. Income tax therefore decreases by €18,083 × 45 % + €1,917 × 41 % = €8,923.32.

Upon withdrawal from the PER (Retirement Savings Plan), the €10,000 gains are taxed at 12.8% (%), resulting in €1,280 in income tax. In the assurance-vie policy, the €10,000 gain is reduced by the €4,600 allowance, leaving €5,400, which is taxed at 7.5% (%): €405.

A negative amount means that the tax avoided on entry exceeds the tax paid on exit.

This table does not include social security contributions or available funds. On PER (Retirement Savings Plan) products, 18.6% of social security contributions are added: €1,860 for every €10,000 of products. The assurance-vie rate is not shown here. PER funds are not available until withdrawal, except in listed cases; assurance-vie funds are available at any time. Depending on the investment options, the invested capital may also decrease: the calculation assumes €10,000 of products and is not a forecast.

This profile is fictitious. The exit rates of 10 %, 30 %, 41 %, and 45 %, as well as the €10,000 in proceeds, are assumptions used in the calculation. The figures illustrate the mechanism and do not predict your specific situation.

What changes depending on your situation

• Your current tax rate, and the one you expect when you leave. In the example, the difference changes direction depending on the exit rate used.
• Your age, with regard to the 70-year age threshold for the deduction.
• Your need for availability : withdrawals at any time on one side, listed cases on the other.
• The age of your assurance-vie contracts and the amount of your premiums, which determine the rate of 7.5 % or 12.8 %.
• The status of your contributions to the PER : deducted, not deducted, voluntary or mandatory.

The rule depends on your situation. No results are guaranteed.