With the 2024 tax known, it is already time to anticipate next year’s. Various mechanisms allow you to limit your taxable income or reduce the amount owed to the Public Treasury. The retirement savings plan (PER) is one of them. Provided you can immobilize capital until the end of your professional activity, it allows you to build up savings at a good price by significantly reducing your tax bill.
The higher your marginal tax rate, the bigger the rebate: households in the 30% bracket and above are therefore the ones mainly concerned.
Payments are, however, limited by a ceiling
A payment of 10,000 euros from this envelope allows them to save 3,000 euros in tax and even 4,100 euros for those in the 41% bracket. However, the payments are limited by a ceiling. “It is calculated as follows: 10% of the annual ceiling of Social Security [Pass] of the previous year, i.e. 4,399 euros in 2024, or 10% of your income up to a limit of 8 times 10% of the Pass of the previous year”, details the Meilleurtaux placement website.
If you want to invest more and you have not made any payments in previous years, it is possible to use the taxable amount available from the three previous years. Please note that this ceiling includes amounts paid voluntarily into a company pension plan. However, it is still possible to top up your PER beyond this, but the amounts will not be eligible for the tax benefit. Unlike the latter, they will also not be taxed upon exit, at the tax rate of the now retired person.