Your PER automatically liquidated at age 70? This measure which worries savers – L’Express

Your PER automatically liquidated at age 70 This measure which

Prohibited to minors since the start of the year, will the retirement savings plan (PER) soon be available to seniors? This is the shocking recommendation of the information report on the taxation of capitalization retirement savings presented at the end of September by deputies Félicie Gérard (Horizons) and Charles de Courson (Liot). The parliamentarians recommend establishing a double age limit, with the impossibility of subscribing to a PER after the age of 67, and above all, its automatic termination at 70 years. The exit of the product – taxed of course – would be done by default as a life annuity, with however the maintenance of a capital exit option. This measure, on which the Treasury has been working for several months, would constitute a loss of freedom for savers, with nothing indicating that they need to use their money at that time. They would then be forced to replace it, with hassle and costs involved.

“A tax loophole that does not speak its name”

The goal is clearly stated: to avoid the trivialization of the PER into a “simple savings product” and to hunt down tax optimization strategies. This includes the death of the holder without recovery, by the beneficiary heir, of the tax savings made upon entry. “There is a tax loophole linked to the transmission of the PER which does not say its name”, we read in the report, which nevertheless struggles to assess the amount, due to the young age of this system.

READ ALSO: Retirement savings plan: an unbeatable tool to reduce your tax bill

Conversely, the rapporteurs propose extending the recoverable tax deduction ceiling by three to five years, which would particularly benefit highly taxed people subscribing late. And to further attract low-income households, MEPs propose adjusting the general social contribution rates for life annuities. A measure with uncertain success as the rent repels the French.

This report contains 17 recommendations, some of which target businesses. Like the obligation to set up a Pereco – collective company retirement savings plan – as soon as the company has more than 11 employees… but without forcing employers and employees to contribute to it! Unsurprisingly, the information provided to savers and the duty of advice that goes with it are part of the cocktail. Other suggestions: the creation of a “standardized information sheet to better understand fees, the implementation of online simulators, as well as the organization of public financial education sessions”. It remains to be seen what follow-up will be given to this overhaul. “While any evaluation work is commendable, it must not result in destabilizing a savings product which, by nature, needs time to prove itself,” believes Philippe Crevel, director of the Cercle de l’évolution. Stability rules are essential.”

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