French deputy proposes new savings plan

A French deputy has proposed a new savings product called the "Plan Épargne Dépendance" (PED) as part of a broader effort to address economic concerns related to the retirement savings plan (PER). The idea was introduced in a parliamentary report focused on growth and the transmission of small and medium-sized enterprises (SMEs).

Deputy suggests tax benefits for new plan

Deputy Olivia Grégoire, from the Renaissance party, suggested that the PED would be a "natural extension" of the PER, offering similar tax advantages. Contributions to the PED would be deductible from income, just as with the PER.

High savings rates among retirees noted

The proposal comes amid government concerns about the economic behavior of retirees in France, who are said to save a significant portion of their income. According to a 2025 Insee conjuncture note, the average savings rate for households is 18%, but this figure varies greatly by age.

Retirees save more due to health concerns

Seniors aged 70 and over save an average of 25% of their income, compared to only 8% for those under 30. This high savings rate among retirees is attributed to fears about future health costs and potential loss of autonomy.

PED funds would be locked for long-term use

The PED would allow retirees to reinvest a portion of their PER funds into a new savings envelope, which would be blocked for a period of ten to fifteen years. This blocking period is intended to align with the time when retirees may need the funds for long-term care.

Funds to support SMEs with investment

The funds in the PED would be invested in both listed and unlisted SMEs, providing these companies with a resource they currently lack. Olivia Grégoire argues that this approach would channel capital into productive sectors of the economy rather than allowing it to become dormant.

Risks of unlisted company investments acknowledged

However, she acknowledges the risk of capital loss associated with investments in unlisted companies and suggests that savers would be informed of these risks, with the possibility of gradually securing the allocation as the deadline approaches.

Proposal remains at idea stage for now

The deputy has indicated that the measure could be included in a future bill proposal, though it remains at the idea stage. The plan aims to address the economic impact of high savings rates among retirees while also supporting the growth of SMEs.