How does this placement for young people work? – L’Express

How does this placement for young people work – LExpress

Radio silence from banks and insurance companies. The Plan épargne avenir climat (PEAC), this new green investment intended for under-21s, has not yet attracted much comment from professionals. Created by the law of October 23, 2023 relating to the green industry, the PEAC is not subject to income tax or social security contributions. “It’s a real surprise, given the state of public finances,” rejoices Maxime Chipoy, the president of MoneyVox.

Like the livret A, it is capped at 22,950 euros. But the comparison ends there, because this product, intended to finance the energy transition, is blocked until the holder reaches the age of majority, except in the event of an accident in life – disability or death. From the age of 18, the young person can make a redemption if their plan is more than five years old. The PEAC is invested in funds labeled ISR – socially responsible investment – or Greenfin. The objective announced by the Minister of the Economy, Bruno Le Maire, is to obtain a more attractive performance than that of the livret A, currently at 3%. “We will have to pay attention to the level of management fees and the selected media, which will directly impact performance,” adds Maxime Chipoy.

READ ALSO: Booklets and term accounts: these offers are still attractive

Savings temporarily blocked

This envelope completes the range of products accessible to minors, such as the Livret A, the Livret Jeune – from 12 years old – and life insurance. But this new green plan is the only product to be blocked. “Unlike life insurance, the PEAC offers a progressive security service, specifies Didier Orens, director of the Savings sector of the BPCE Group, which plans to launch its product in the first quarter of 2025. This means that the capital is gradually repositioned on less risky vehicles as the maturity date approaches.”

The latter is chosen by the holder, or their parents if they are a minor. The management method is modeled on that of the retirement savings plan, which has also been inaccessible to minors since January 1, 2024. The regulations stipulate that 70% of assets must be invested in low-risk vehicles two years before the plan matures.

READ ALSO: LEP: how the popular savings booklet steals the show from the Livret A

Finally, the PEAC will be automatically closed when the holder turns 30. “This therefore leaves at least nine years of investment for those opening a plan just before their 21st birthday: this horizon is long enough to take full advantage of the potential of the financial markets,” says Didier Orens. And it will be even longer for those who choose to open one as soon as their child is born.

lep-life-health-03