Every year, the finance bill conceals its share of surprises. In the 2024 edition, it is the Retirement Savings Plan (PER) which bears the cost. Created four years ago by the Pacte law, this unique retirement savings system was – in the absence of any indication to the contrary – accessible to minors. This possibility should be removed from January 1, 2024.
An interesting product from a heritage perspective…
The PER allowed certain families to build a nest egg for their children, without fear of it being squandered early since this envelope is blocked until retirement, barring life accidents or acquisition of a main residence. In addition, as long as the child was attached to the tax household, the plan opened in the name of the latter made it possible to deduct from the household income the sums paid by taking advantage of the children’s retirement savings ceiling, which amounts to 4,114 euros this year in the absence of professional income. “Opening a PER for a minor is perfectly justified in terms of assets to the extent that it is consistent to build up retirement savings as early as possible,” estimates Benoît Berchebru, director of asset and tax engineering for the DLPK group.
…which must be replaced by another
On the Bercy side, we are highlighting the launch of a specific product for children, the Future Climate Savings Plan (PEAC), freshly created by the green industry law and whose marketing should start in the first half of 2024. Little brother of the PER”, according to the Ministry of the Economy, the latter aims to prepare the beneficiary’s entry into working life, while financing the energy transition of our economy.
It is therefore a cold shower for households which had equipped themselves in good faith. There remains, of course, the possibility of topping up your children’s PER until the end of the year, but then the latter will be “frozen”, according to Bercy. The minor holding the contract will have the possibility, when he or she reaches the age of majority, to take over management of it and contribute to it. Furthermore, a possibility of transfer to the Future Climate Savings Plan is already planned. It remains to be seen how it works. “PEAC earnings will be exempt from income tax and social security contributions upon exit, which is very favorable,” explains Benoît Berchebru. If the tax advantage obtained upon entry into the PER can be retained, then the transfer will be a great option.” The evolution of the texts will tell whether such a combination, which seems too good, is likely to materialize.