New savings plan proposal introduced

A new savings plan called the Plan Épargne Dépendance (PED) has been proposed in a report by Olivia Grégoire, a deputy from the Renaissance party and former minister. The report outlines 26 ideas aimed at fostering economic growth and improving the transfer of ownership in small and medium-sized enterprises (SMEs).

Focus on future financial security

The proposed PED aims to help French citizens continue saving after retirement, specifically to prepare for potential costs related to a loss of autonomy. The report notes that as life expectancy increases, dependency has become the most expensive, most feared, and least anticipated risk for many people.

Extension of existing retirement savings

The PED would function as an extension of the existing Plan d'épargne retraite (PER). When individuals unlock their retirement savings, they could choose to reinvest all or part of their accumulated capital into the PED. However, these funds would be locked in for 10 to 15 years, roughly between the ages of 65 and 75 or 80.

Tax benefits and unclear details

The report suggests the PED would enjoy "the same tax advantages" as the PER, which currently allows for deductions of voluntary contributions from taxable income under certain conditions. However, it does not specify the exact tax arrangements for the PED, especially regarding withdrawals.

Support for small businesses

The investment would primarily be directed toward SMEs, whether listed or not. The goal is to provide these businesses with long-term financing they often lack to grow and develop. However, this approach carries risks for savers, as investments in unlisted companies can lead to capital loss and difficulty in recovering funds before the lock-in period ends.

Risks and future steps

The report acknowledges the risks of investing in unlisted companies and suggests ways to gradually secure investments as the unlock date approaches. The PED is currently only a proposal, and its creation would require a law. A draft bill is being prepared, but the report does not specify when it might be implemented.