“Life insurance and PER are complementary investments”

To enjoy your retirement with complete peace of mind, planning ahead is key! Thus, it is advisable to start investing from the age of 40 to have additional income to your retirement pension and maintain your purchasing power. Retirement Savings Plan (PER), life insurance, real estate… Watch our digital event of May 11 in replay, and discover the convictions of three experts on these flagship investments to prepare for your retirement.

All wealth management professionals will tell you that when it comes to retirement, you have to anticipate! In fact, if you contribute the required number of quarters and at the full rate, your retirement pension will more or less correspond to half of your average annual salary: this is calculated on the basis of the gross annual salaries of the 25 best years of your career, within the limit of the Social Security Ceiling (PASS, i.e. 41,136 per year in 2022). Thus, to benefit from additional income after your professional life, it is essential to start saving as soon as possible, from the age of 40 if possible.

The Retirement Savings Plan (PER) is now the only investment specifically dedicated to preparing for retirement. Since October 2020, Perp, Perco, Corem, Madelin contracts and articles 83 are no longer marketed. The Pacte Law has smoothed out the differences between the old retirement savings vehicles, to allow each French person to invest in a single investment throughout their career, regardless of any changes in status (entrepreneurship, salaried , civil servants, etc.).

The PER can contain 3 compartments: the first is supplemented by your individual payments, the second and third by collective payments (via your employer for example) optional on the one hand and compulsory on the other. Transfers between these three “pockets” are facilitated.


Life insurance and PER: complementary investments

A favorite investment of the French, life insurance is often used by savers to build up capital for their retirement. The PER also allows a capital outflow (or in the form of a life annuity like the old retirement savings contracts). “The French hate rent,” said Stellane Cohen, president of Altaprofits. She recommends opening a PER “as soon as you enter working life because when you start early, you have a better chance of seizing market opportunities and you can feed your plan at your own pace”.

“Life insurance and PER are complementary investments”, underline the three guests. They should be considered as part of a comprehensive and evolving heritage strategy, depending on your personal situation and your age. “For savers who are starting out, it makes more sense to start with life insurance before the PER”, illustrates Olivier Sentis, the managing director of the MIF.
“Life insurance is a multi-project savings method. But savings for retirement must be secured, and therefore affected. This is what the PER allows,” recommends Christian Carrega, President of Préfon Distribution.

Real estate: a safe bet to benefit from additional income in retirement

The French also trust real estate investments to prepare for their retirement. Thus, 7 out of 10 seniors own their main residence, according to INSEE. This is a lot compared to the Anglo-Saxon countries of the European Union (Germany, Austria, United Kingdom, Norway, Denmark, Switzerland, etc.) where less than one senior in two owns their main residence. One of the objectives expressed by investors is to limit their expenses at the time of retirement. However, real estate can also generate additional income. Many options exist: managed real estate, rental real estate, stone-paper investment, by buying shares in a real estate investment company (SCPI), for example.


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