2023-05-25 15:22:23
The results are beyond Bercy’s expectations. The Retirement Savings Plan (PER), a funded retirement product resulting from the Pacte law of 2019, totaled 7 million customers and 80 billion in assets at the end of 2022. The Ministry of Economy and Finance initially posted a objective of 3 million subscribers and 50 billion euros in assets.
“The PER reform (…) is a great success: we have more than doubled our PER distribution target at the end of 2022, with more than 7 million French people equipped”, welcomed Bruno Le Maire on Wednesday, quoted in a communicated. This dynamic “concerns both corporate, collective (more than 19 billion euros in outstandings) and mandatory (more than 12 billion euros in outstandings) PERs, as well as individual PERs (more than 49 billion euros in assets and more than 3 million holders)”, he explains.
Resource for insurers
The PER is a “tunnel” product, which is envisaged over the long term. The payments are free but will not be recoverable before retirement age, except in exceptional cases such as the purchase of a principal residence or well-defined “accidents of life”: disability, over-indebtedness, expiry of insurance rights unemployment… At the time of retirement, two options are possible: an exit in capital but heavily taxed, or an exit spread over time, in an annuity.
Most of the management of PERs is delegated to insurers. The younger the client, the riskier the investments: before the age of 40, payments are invested almost entirely in units of account (UA), ie riskier investments but potentially more profitable in good years. The freezing of funds over the very long term and the large share of investments more subject to the vagaries of the markets, which also generate commissions, above all make the PER a godsend for insurers.
Reflecting the “new expectations of the French”, according to the managing director of France insurers Franck Le Vallois, the PER also benefited from concerns around the pension system, opening a way for supporters of a dose of capitalization.
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