A few months ago, an independent consultant came to me to “invest some money for his retirement”. He was paying €500 a month into a savings passbook. Analysing his situation, I noticed a striking set of red flags: with a marginal tax rate of 30%, every euro placed in his passbook cost him “full price”, with no leverage whatsoever. By redirecting this savings effort into an optimised retirement savings plan (PER), he not only cut his tax by €1,800 a year, but also gained access to real-estate vehicles (SCPI) that were out of reach through his bank.
Preparing for retirement is no longer a matter of patience, it is a matter of tax engineering.
TL;DR (Too Long; Didn’t Read)
- Mechanism: Voluntary contributions to an individual PER are deductible from your income-tax base (within the statutory ceilings).
- Exit flexibility: Choose between a lump sum (one-off or in instalments), a life annuity, or a mix of the two.
- Availability: The savings are locked until retirement, except in exceptional cases (purchase of a main residence, life accidents).
The Balmont approach: Using AI to simulate the “net-net” tax advantage and audit older contracts (Madelin, PERP) for a transfer to higher-performing, new-generation PER plans.
What is a retirement savings plan (PER)?
Created by the PACTE Act, the French Retirement Savings Plan (PER) is a legal wrapper designed to harmonise the older products (PERP, Madelin, “Article 83”). It is a savings tunnel: you enter with a tax advantage up front, you compound sheltered from tax for years, and you exit at retirement.
How the individual PER (PERin) works
The individual PER is open to everyone, with no age or professional-status condition. It works on the basis of voluntary contributions.
- On the way in: You deduct your contributions from your total taxable income. The higher your marginal tax rate (30%, 41% or 45%), the larger the government’s “gift”.
- During the life of the contract: You benefit from horizon-based managed allocation. The further you are from retirement, the more dynamic the allocation (equities, private equity). As the term approaches, AI and human arbitration secure the capital towards euro-denominated funds.
Who is the retirement plan really for?
While the PER is universal, its usefulness varies with your profile:
- Executives and Company Directors (high earners): This is the tax-optimisation tool par excellence. The benefit is immediate.
- Liberal Professions and self-employed (TNS): The PER is an advantageous replacement for the old Madelin contracts, with a freedom of exit in capital that Madelin did not offer.
- Young professionals: Here the goal is to use the PER to build the deposit for their main residence, since that is the only “for pleasure” early-release case before retirement.
Alexis Sagnier’s view: “The PER is particularly powerful for those whose marginal tax rate will fall in retirement. If you are taxed at 41% today and expect to be at 11% tomorrow, the tax arbitrage is mathematically unbeatable.”
Taxation: between deduction and taxation on exit
This is where the protective complexity comes in. The PER is not a tax exemption, but a deferral.
- On contributions: Deduction available within the limit of 10% of professional income (capped).
- On a capital exit: The portion corresponding to your contributions is subject to the income-tax scale (without the 10% allowance), while capital gains are subject to the 30% Flat Tax (PFU).
Word of caution: Beware of early release to buy your main residence. The capital reintegrated into your tax base can push you up a tax bracket and wipe out the benefit of the original set-up. An audit of your 2026 tax situation is essential before initiating a withdrawal. [Book a situation review]
Choosing your retirement savings vehicle: the expert criteria
Not all PER plans are equal. As an open-architecture firm, we scrutinise criteria that banks rarely mention:
- The investment universe: Does your PER let you include yield SCPIs, direct securities or infrastructure funds?
- Management and annuity fees: Over 20 years, a 0.5% difference in fees can represent tens of thousands of euros in lost performance.
- Protection options: In the event of death before retirement, is your spouse protected by a floor guarantee?
Alternatives to the PER
The PER should not be your only engine. Within a wealth diversification strategy, it combines with:
- Life insurance: For the availability of capital at any time and for estate transfer.
- Real estate (LMNP or SCPI): To generate immediate or deferred complementary income.
Data Factsheet: PER vs Life insurance vs Real estate
| Feature | Individual PER | Life insurance | Real estate (SCPI) |
| Tax advantage on entry | Income-tax deduction | None | None (except specific schemes) |
| Availability | Locked (except exceptions) | Full (liquidity) | Partial (resale lead time) |
| Taxation on exit | Income tax on the capital | Allowance after 8 years | Property income / social levies |
| Estate transfer | Depending on age at death | €152,500 allowance | Standard inheritance tax |
How to subscribe and optimise your retirement savings vehicle?
Opening a PER is simple, but optimising it requires a 360° view. At Balmont Conseil, we use our AI to:
- Calculate your available ceiling (including unused ceilings from the last three years).
- Analyse your older contracts: Transferring a PERP to a PER is often a source of immediate gains in terms of fees and flexibility.
- Model the exit: Should you favour a life annuity to secure your later years, or capital in instalments to optimise your taxation over 15 years?
Answer Capsules (FAQ)
Can you transfer a corporate PER to an individual PER?
Yes, this is possible if you have left the company. It lets you take back control of the management and access a broader investment universe than the one offered by your former employer’s collective agreement.
What happens in the event of death before retirement?
The PER is not lost. It is either included in the estate or benefits from the life-insurance regime (Article 990 I allowances) if the contract is of an insurance nature. This is a major point of vigilance in your wealth audit.
What are the average fees of a good PER?
A high-performing PER should have no contribution fees (0%) and management fees on unit-linked supports not exceeding 0.6% to 0.8%.
Conclusion: action is the best safeguard against uncertainty
The pay-as-you-go pension system is showing its limits. The retirement savings plan is the tool that lets you take back control. However, the 2026 tax law and recent case law on inheritance call for constant vigilance.
Don’t endure your retirement, build it like an engineering project.
Optimisation is only effective if it is serene. My role is to secure your wealth against the changes of 2026.
Take action: What is your real tax gain on a €10,000 contribution? Does your current contract contain obsolete beneficiary clauses?
Book a feasibility audit with Alexis Sagnier
Sources & References
- PACTE Act (2019): Legal framework of the Retirement Savings Plan.
- French General Tax Code: Articles 163 quatervicies (Deduction ceilings).
- Official Bulletin of Public Finances (BOFiP): Taxation of capital withdrawals.
- 2026 comparative simulations – Balmont Conseil Artificial Intelligence.