Unlocking the Benefits of the LEP: Why Millions of Eligible French People are Missing Out

2023-11-02 16:10:08

Although the Livret A remains the most popular savings product in France, the LEP has recently enjoyed growing success. Indeed, with more than 10 million holders, according to data from the Banque de France, the popular savings account has become a very popular savings solution in 2023. But despite its advantageous returns, more than 8 million French people eligible have not subscribed to this booklet.

The French who do not benefit from the LEP

According to the Banque de France, around 35% of French adults, or 18.6 million people, meet the eligibility criteria for the LEP. But only 10.1 million have opened an account to date. This means that 8.5 million eligible French people do not benefit from this savings product. “ The LEP ownership rate is therefore today approaching 54% of the eligible population, compared to 81% for the Livret A, open without conditions of age or resources. », Indicates the Bank of France. Judging this figure to be insufficient, this institution emphasizes that it is necessary “ reach at least 12.5 million LEP by summer 2024, or more than two-thirds of the 18.6 million eligible people ».

On October 31, the same financial institution identified the profiles eligible for the LEP. This primarily concerns people in financially fragile situations, representing approximately 22% of the population eligible for LEP. According to the BF, among the poorest 10% of the population, only one person in ten has a LEP, mainly due to limited savings capacity. “ The margin for progress can only be quite low due to the difficulty in generating sufficient income », Indicates the Bank of France.

Then, we have young adults who, even if they represent some 10% of rights holders, only less than 2.5% of them hold a LEP. The main obstacle for this category lies in the tax declaration which excludes students. “ Young people are too little aware of LEP », noted the governor of the Bank of France, François Villeroy de Galhau. In this regard, the financial institution encourages banks to target these young workers and eligible students by making them aware of the advantages of the popular savings account.

Furthermore, some Livret A holders, despite modest incomes, have not yet opened a LEP. This is a missed opportunity, because the LEP offers a remuneration rate higher than 6%, while the Livret A only offers 3%.

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