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France’s Retirement Savings Plan Tops €150 Billion After 20% Year-on-Year Surge

Tax perks fuel uptake by savers seeking better returns.

Overview

  • The Plan d’Épargne Retraite (PER) has passed €150 billion in assets after rising about 20% in a year, according to the Economy Ministry.
  • Nearly 13 million people now hold a PER, which is designed as a long-term account locked until retirement.
  • Contributions are tax-deductible, so a €1,000 payment for someone in the 30% bracket can reduce taxable income by €300.
  • Typical returns are about 3% to 5%, above the Livret A’s 1.5%, said Philippe Crével of the Cercle de l’Épargne.
  • Officials and experts say the growing pool of PER savings helps finance companies by channeling money into long-term investment funds.