The retirement savings, we know, is exit a tax advantage to the input : the contributions paid on a Perp are in effect deductible from wages or professional income, in significant limitations : 10% of such income of the previous year, with a minimum of 3862€ and a maximum of 30893€ for 2017.
In return for this preferential treatment, the output must be in the form of annuities and height of at least 80% of the savings in the account, the remaining 20% that can now be recovered in the form of capital.
When the subscriber wants to purchase his principal residence, however, it is possible, under certain conditions, to recover 100% of its savings : this is the only exception !
Reporter of a few years the outcome of the contract
Basically, the amount of a life annuity depends on two parameters : the savings account and the beneficiary’s age at the time of the transformation of its capital into annuities.
Logically, the longer this operation takes place later, the amount of the annuity is high because the life expectancy is not extendable : 290€ per month at age 62, 336€ per month to 67 years, but 399€ per month at the age of 72, on the basis of a savings of 100,000€, for example.
It is worth to defer this operation, knowing that it cannot be postponed to the Greek calends….
According to the tax regulations (BOI 5B-11-05 of 21 February 2005), the payment of the pension must take place “at the latest until the age corresponding to the life expectancy of the participant determined by the tables generation is provided in section A. 335-1 of the insurance code, less than fifteen years”.
This deadline outcome is assessed, it is necessary to know, on the date on which you joined the Perp, but also “the date on which the participant signs an agreement to request the postponement of the conversion of its capital,” noted Xavier Panuel, manager, actuary life products at Swiss Life.
Thus, an investor who would have been born in 1952, and which would have opened a Perp 10 years ago, at the age of 55 years, may, for example, defer the winding up pension savings until 2027, that is to say up to 75 years old…!
break free from the constraints of the pension classic
With most of the Perp, the output of the annuity is still too classic : one and the same amount is proposed for life. However, this way of thinking is obsolete today. More and more insurers have realized that since their new Perp provide either fixed annuity and fixed once and for all, but of annuities are flexible, adapted to the immediate financial needs or future of the underwriter.
The annuity increasing by increments is a good example : with it, you will receive an initial amount of a pension less than that which will regularly increase by increments, over the years, which can be very reasonable to deal with expenditure related to old age : health costs, or expense of home maintenance, particularly when the spectre of the loss of autonomy is emerging…
to Target the funding of the dependence
In this same spirit, be aware that more and more of the Perp offer a life annuity with a long-term care option. The principle of this option is very simple : if you become partially or totally dependent, the initial pension for which you have received until now, will be doubled.
In return for this “bonus”, the benefit is obviously reduced from 8% to 10% approximately to start, and it definitively. Small precision : the amount of the pension is not increased if the recipient, even older, is not affected by any loss of autonomy.
This choice, however, can be very interesting if you have no ltc insurance, or if you want to avoid tapping into savings dedicated to your children by example, that you have taken care of in the shelter of a life insurance contract…
Finally, know that as long as you have not settled your Perp in annuities, you can transfer all of the savings towards a product more competitive, which, in particular, offers various forms of annuities.
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Do you deprive yourself not, therefore, of the possibility provided for by the regulation, provided that it is fiscally neutral since it does not generate any income tax or social levies. Better : if you perform the operation more than 10 years after the date on which you purchased your contract, it will be completely free and it is the new insurer that will handle all the formalities for the transfer!