If France has long boasted of its pay-as-you-go system , in which workers contribute for the pensions of current retirees , the model falters under the weight of the aging of the population. Now is the time for individual financing… And the sooner the better.
By starting to save from the age of or 30 years, even with small amounts, it is possible to grow your nest egg over time. Conversely, the later you do it, the more difficult it will be to obtain a strong valuation … Overview of the solutions available to you.
Life insurance, the flagship investment
On the hit parade of products popular with the French, we obviously find the life insurance. Customizable, very flexible and benefiting from favorable taxation, this type of contract is appreciated for its inheritance advantages but also as a retirement savings solution. However, do not plan to finance your old days with a basic contract in euro funds, the return of which is often reduced today like a skin of grief. You will have to determine the most profitable options in relation to your objectives and your risk profile.
In addition, “we sometimes forget that life insurance has a whole lot payment mechanisms in the form of a programmed annuity rather than a lump sum withdrawal. It can therefore be an excellent additional funding once you retire ”, specifies Karl Toussaint du Wast, co-founder of Net-investment.fr , a wealth management consulting site. Depending on the total accumulated amount, it is then a question of “calculating with your advisor a certain determined sum to be paid every month, quarter or year, knowing that you can adjust it according to your needs”. And during that time the rest of your life insurance continues to work.
Real estate, the Grail
The French also have a strong appetite for real estate . After all, as Thomas Abinal, co-founder of Monetivia.com and expert in wealth management, points out, “he is a tangible asset whose profitability is relatively easy to understand. And thanks to credit, it is possible to invest today your retirement savings for the years to come. »
Beyond the purchase of a home, it is above all the rental investment that is targeted. Thanks to the rents collected, you can repay your loan. And provided you calibrate the duration of the credit in relation to the estimated date of the end of your career, this income will then be transformed into an annuity for your retirement. In addition, the status of non-professional furnished landlord (LMNP) will allow you to permanently and almost fully tax these rents thanks to the depreciation mechanism.
You do not feel not the soul of a lessor? You can buy shares in a performance SCPI (a real estate investment company). “Everything is managed for you and as a shareholder you receive an annuity of around 4 to 5% net of costs per year. It’s very good for retirees, ”according to Karl Toussaint du Wast. Another option: investment in bare ownership. “There is no recurring income, therefore no property tax which“ eats ”profitability, presents Thomas Abinal. There is also no tenant, so no rental risk. Everything is capitalized. It’s a great solution for retirement savings. ”
The PER, the newcomer
The State has also created specific products. Since the end of 30, it is retirement savings plan , known as PER, declined in collective and individual version, which replaced the old Madelin, Perco, Perp and other Préfon. As for the individual plans, you then have the choice between a securities account PER (CT PER) and a life insurance PER, both having the advantages of the products to which they refer.
Once you retire, you can in any case receive your funds in the form of an annuity or lump sum. But the co-founder of Net-investment.fr warns: “The terms and costs of PER management vary according to the formulas and the financial institutions, not to mention that multiple annuity options are possible. You must therefore consult a specialist to determine the most advantageous contract for you. ”