The Plan d'Épargne Retraite (PER) is one of the few savings products in France that still offers a tax advantage at the point of contribution. Created by the PACTE Act of 2019, it unified and simplified the old schemes (PERP, Madelin, PERCO). In 2026, it is an essential tool for taxpayers in the 30%, 41% or 45% marginal tax brackets.
How Does the PER Work?
The PER is a savings vehicle locked until retirement (with specific early-release scenarios). The key benefit: contributions are deductible from your taxable income, which immediately reduces your income tax bill.
Who Can Open a PER?
Any French tax resident: employee, self-employed (TNS), civil servant, job-seeker, or even a minor child through their parents.
The Deduction Ceiling: Up to €35,194 in 2026
For 2026 (2025 income tax return), the deduction ceiling is the higher of:
- 10% of net professional income from the prior year, capped at 8 × PASS (Social Security Annual Ceiling = €46,368 in 2026), i.e. a maximum of €46,368 × 10% × 8 = €37,094
- 10% of PASS = €4,637 (floor for low earners)
Note for the self-employed (TNS): the ceiling is even more generous — up to €76,101 of deduction possible by combining both Madelin regimes.
Actual Tax Saving by Tax Bracket
| PER Contribution | 30% Marginal Rate | 41% Marginal Rate | 45% Marginal Rate |
|---|---|---|---|
| €1,000 | Saving: €300 | Saving: €410 | Saving: €450 |
| €5,000 | Saving: €1,500 | Saving: €2,050 | Saving: €2,250 |
| €10,000 | Saving: €3,000 | Saving: €4,100 | Saving: €4,500 |
In practice: if you contribute €10,000 to your PER at a 41% marginal rate, the government reimburses €4,100 via your tax return. Your net outlay is only €5,900.
How to Invest Within a PER?
The PER works like life insurance: you can choose between euro funds (capital-guaranteed) and unit-linked accounts (ETFs, SCPIs, funds…). Our recommendation:
- 20+ year horizon: 100% equity ETFs (dynamic profile). Retirement is far away; short-term fluctuations are irrelevant.
- 5–10 year horizon: gradually shift toward a more secure allocation (lifecycle management)
- Less than 5 years from retirement: progressively move into euro funds
Withdrawal: The Trap Not to Miss
This is where many investors are disappointed. Upon retirement, amounts withdrawn are taxable. The tax treatment depends on how you withdraw:
| Withdrawal Method | Tax on Capital | Tax on Gains |
|---|---|---|
| Lump sum (contributions deducted) | Progressive income tax (like salary) | 30% flat tax |
| Lifetime annuity (contributions deducted) | Annuity taxed at income tax rate after 10% allowance | Included in annuity |
| Lump sum (contributions not deducted) | Exempt | 30% flat tax |
The PER advantage is maximised when your marginal tax rate at retirement is lower than your current rate. Example: you are at 41% during your working years, and drop to 30% in retirement. You saved 11 percentage points of tax on every euro contributed.
Early Release Scenarios
The PER is not entirely locked. 6 early release scenarios exist:
- Death of spouse or civil partner (PACS)
- Disability (category 2 or 3)
- Recognised over-indebtedness
- Expiry of unemployment benefits
- Cessation of self-employed activity following judicial liquidation
- Purchase of primary residence (voluntary deducted contributions only)
Best Individual PER Providers in 2026
| PER | Manager | Unit-Linked Fees | ETFs Available | Lifecycle Management |
|---|---|---|---|---|
| Linxea Spirit PER | Linxea / Spirica | 0.50%/yr | Yes (broad) | Yes |
| Yomoni PER | Yomoni / Suravenir | 0.60% + 0.30% | ETFs only | Yes (automatic) |
| Nalo PER | Nalo / Generali | 0.55% + 0.20% | ETFs only | Yes (AI) |
| Meilleurtaux PER | Meilleurtaux / Apicil | 0.60%/yr | Yes | Yes |
PER vs Life Insurance: Which to Choose?
The two are complementary but serve different objectives:
- PER: tax advantage at contribution (deduction), ideal if you have a high marginal rate. Essentially locked until retirement.
- Life insurance (assurance-vie): full flexibility (withdrawals at any time), tax advantage at withdrawal (after 8 years), inheritance benefit. Ideal as a medium/long-term savings vehicle.
If your marginal tax rate is 30% or above: maximise the PER first (immediate deduction), then complement with life insurance for flexibility and estate planning.