PER reaches sixth anniversary

The Retirement Savings Plan (PER), launched in October 2019, marks its sixth anniversary today. The plan has grown significantly, with total assets reaching 150.4 billion euros as of December 31, 2025, and nearly 13 million account holders.

Tax benefits and contribution flexibility

The PER provides tax advantages, allowing individuals to deduct contributions from their taxable income up to a specified limit. Contributions can be made monthly, regularly, or occasionally, and participants can pause or restart contributions at any time. However, contributions made after the age of 70 are no longer tax deductible.

Withdrawal options and conditions

The plan does not require closure at retirement and can continue to be funded. Withdrawal options include early withdrawal for specific reasons, such as purchasing a primary residence, disability, or the death of a partner. However, early withdrawal for a primary residence does not exempt the withdrawal from taxation on the income from bonuses.

Retirement withdrawal choices

At retirement, individuals can choose to withdraw funds as a pension, as a lump sum, or a combination of both. The PER is especially beneficial for those in higher tax brackets who expect to be in a lower bracket in retirement. The tax deferral applies only during the active period, with taxes due upon withdrawal.

Inheritance and tax considerations

The PER allows for designating beneficiaries, and inheritance tax rules are similar to those of life insurance. The age of the deceased, not the contract's subscription date, determines the inheritance tax. Additionally, premiums paid are not subject to income tax in the event of withdrawal due to death, potentially offering tax advantages similar to life insurance.