Withdrawal from the PER at retirement: lump sum or annuity, and what are the tax implications depending on your contributions?

Upon retirement, a PER (Retirement Savings Plan) can be withdrawn as a lump sum, a lifetime annuity, or a combination of both. Taxation depends primarily on a choice made at the time of contribution: did you deduct your contributions from your income, or did you opt out of the deduction? If you deducted them, the portion of the capital corresponding to these contributions is taxed according to the income tax scale, without the 10% allowance. If you did not deduct them, this portion is tax-exempt. In both cases, the gains are subject to a flat tax of 31.4% (since January 1, 2026), or to the progressive tax scale if you choose.

This page deals with withdrawals at retirement age. It does not cover withdrawals from a PER (Retirement Savings Plan) by someone leaving France or residing abroad, nor the death of the account holder, nor non-deductible contributions made from age 70 onwards. These cases are verified on a case-by-case basis.

When and how to go out

The PER (Retirement Savings Plan) is available at the earliest upon receiving your retirement pension, or at the legal retirement age depending on your year of birth. You are under no obligation to withdraw all your funds immediately. With an individual PER, voluntary contributions made after your retirement are available at any time.

Three exit strategies are possible:

• Capital, paid in one or more installments.
• The life annuity, possibly reversible.
• A combination of both.

Two limitations to be aware of:

• If you definitively opted for the annuity when opening the plan, the capital is no longer possible.
• The benefits derived from mandatory contributions are paid as an annuity. If the annuity does not exceed €110 per month, it can be converted into a lump sum by mutual agreement between the insurer and the beneficiary.

The plan is divided into compartments according to the source of the funds: voluntary contributions, employee savings, and mandatory contributions. Employee savings paid into the plan are subject to specific rules, which are not detailed on this page.

Capital withdrawal: two regimes

The flat tax rate of 31.4% (%) has been in effect since January 1, 2026. The option for the tax scale is global. The tax administration's information booklet (section "Income 2026 and subsequent years") indicates that, for investment income, the option for the tax scale is no longer irrevocable. It does not specify an application date: verify this before exercising the option.

Forgo the deduction

You can waive the tax deduction by notifying the plan manager with each payment. You will then benefit from reduced taxation upon withdrawal.

The annuity payout

The portion retained depends on your age on the date of the first annuity payment:

The annual limit for the 10 % allowance is not specified on this page. It can be found in the current regulations.

Accessing funds before retirement: the permitted scenarios

Before retirement age, a lump-sum withdrawal is only possible, according to service-public.gouv.fr, in the following cases:

• death of the spouse or civil partner of the holder; ;
• disability (2nd or 3rd category) of the holder, his children, his spouse or his civil partner; ;
• serious illness, disability or serious accident of a dependent child; ;
• over-indebtedness of the holder; ;
• expiry of unemployment insurance rights, or cessation of the function of corporate officer for at least 2 years, without an employment contract or pension being paid out; ;
• cessation of a self-employed activity following a court-ordered liquidation; ;
• purchase of the main residence.

The list provided by economie.gouv.fr is not worded in the same way. Before requesting early release of funds, check the cases and their conditions in the current text.

For the purchase of a primary residence, the withdrawal follows the lump-sum withdrawal rules described above, according to the BOFiP (Official Bulletin of Public Finances). Service-public.gouv.fr specifies that, in this case, the rights resulting from mandatory contributions remain frozen.

What the 2026 Finance Law changes for those aged 70 and over

Since January 1, 2026, contributions made after age 70 are still possible but are no longer tax-deductible. For the maximum deduction amount and entry rules, see the dedicated page. The treatment of non-deductible contributions made from age 70 onwards is not addressed here; this information can be found in the current regulations.

Numerical example (fictitious profile)

Situation. An executive retires with a retirement savings plan (PER) of €140,000. He contributed €100,000 to the plan, and the plan generated €40,000 in gains. He withdraws the entire sum as a lump sum.

Issue. The exit strategy depends on the deduction at the time of entry. The cost of exiting must be compared to the tax savings realized at the time of entry, which depend on the tax rate in effect at the time.

Strategy. The firm reviews with him the history of payments, the choice of deduction or non-deduction made for each payment, and his expected tax rate in the year of withdrawal.

Result. Hypothetical scenario: a tax saving of 30% on initial investment on €100,000 of deducted contributions (i.e., €30,000), within the deduction limit; a tax rate of 30% or 11% upon exit. Gains are subject to the flat tax rate of 31.4%, amounting to €12,560 on €40,000.

With the same tax rate at entry and exit, both schemes leave the same balance in this example. With an exit rate of 11.%, the balance of deducted contributions becomes a positive €6,440. This profile is hypothetical. The rates are assumptions: the calculation applies a single rate to €100,000, whereas the tax brackets are progressive, and it ignores the family quotient, other income for the year, and the option for the tax brackets based on earnings. It illustrates the mechanism and does not predict any outcome for your specific situation.

What changes depending on your situation

• Your choice with each payment: deduction or no deduction.
• The origin of the funds: voluntary contributions, employee savings or mandatory contributions.
• Your choice of payout: lump sum, annuity or combination.
• Your age at the time of the first annuity payment.
• Your tax rate in the year of withdrawal, compared to that of the year of payment.
• Your tax residence at the time of departure, which this page does not address.

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