Fees for retirement savings vary widely

Fees associated with Retirement Savings Plans (PER) range from 0% to 5% on contributions, with management fees at 0.77% for the euro fund and 0.91% for unit account contributions, according to the latest report from the Observatoire des produits d'épargne financière, published by the Comité consultatif du secteur financier, an organization affiliated with the Bank of France.

Average fees are higher than management costs

The average contribution fees for the PER are estimated at 1.09% for the euro fund and 1.51% for contributions on unit accounts (UC). Gilles Belloir, director of Placement-direct.fr, stated that fees on contributions exceeding 2% or 3% seem excessive and noted that transfer fees limited to 1% of fees on the transferred savings during the first five years, then 0% afterwards, introduced by the Pacte law, are a satisfactory measure.

Transferring savings remains difficult

However, difficulties in transferring retirement savings between companies remain, creating non-tariff barriers that need to be addressed. The individual PER differs from its predecessors, the Perp and Madelin, in that tax deductibility of contributions is now an option rather than a rule, even if it is activated by default.

Tax incentives can be opted out of

Savers can choose to renounce this "tax incentive" and benefit from softened taxation upon withdrawal. This choice must be indicated to the PER manager when opening the contract and will apply to all contributions unless a counter-order is made for future contributions. Gilles Belloir estimates that for savers who do not wish to obtain a tax reduction, life insurance is generally preferable due to the possibility of recovering the initial investment more easily before retirement.

Withdrawals are limited until retirement

Once invested, money in a PER cannot be recovered before retirement, except in specific cases such as the death of a spouse, disability, over-indebtedness, expiration of unemployment rights, cessation of activity following a judicial liquidation, and the acquisition of the main residence. Gilles Belloir noted that this "illiquidity" confines the PER to a complementary product role, suggesting that savers should maintain available capital for short-term and medium-term needs if they are not close to retirement.