"The PER (Plan d'Epargne Retraite) is a long-term savings product created by the Pacte Law in 2019. It allows you to build retirement capital with an immediate tax deduction on contributions."

"What is the PER deduction cap in 2026?"

"The deduction cap is 10 percent of the previous year's net professional income, limited to 8 times the PASS. A floor of 10 percent of the PASS applies for lower incomes."

"Can you withdraw money from the PER before retirement?"

"The capital is locked until retirement, except in cases of early release: purchase of the main residence, disability, spouse's death, end of unemployment rights, over-indebtedness, cessation of non-salaried activity."

"Capital or annuity exit on the PER?"

"Since the Pacte Law, 100 percent capital exit is possible for the individual PER. Annuity exit remains an option, often chosen to secure a lifetime income."

"Is the PER interesting for everyone?"

"The PER is mainly advantageous for households taxed at 30, 41 or 45 percent. For an untaxed household or in the 11 percent bracket, the tax interest is limited and other wrappers may be preferable."

PER (French Retirement Savings Plan): the complete 2026 guide

In short

PER: French retirement savings product created in 2019, deductible from income tax
Deduction cap: 10 percent of previous year's professional income (limited to 8 PASS)
Exit possible in capital, annuity, or mix
Early release: main residence purchase, life accidents
Profitable from the 30 percent tax bracket

The Plan d’Epargne Retraite (PER) replaced the old Madelin, PERP, Article 83 and PERCO contracts. Since 2019, it has been the unified wrapper to prepare for retirement with tax optimisation at entry. Here is everything to know to decide if the PER is suitable for your situation.

What is the PER exactly?

The PER is a long-term savings product created by the 2019 Pacte Law. It allows you to deposit sums during working life, these contributions being deductible from taxable income, then recover the capital at retirement, as capital, annuity or a mix of both.

The PER has three compartments:

Individual PER (PERIN): opened voluntarily by an individual, funded by free contributions
Collective PER (PERCOL): set up by the company, funded by profit-sharing, employee savings and matching
Mandatory PER (PEROB): set up by the company, mandatory contributions for the employees concerned

The three compartments can coexist within a single PER contract. This simplifies management when combining individual PER and corporate PER during your career.

Entry taxation: the deduction

Each voluntary contribution to an individual PER is deductible from taxable income, within a tax cap.

Cap for an employee in 2026:

10 percent of previous year’s net professional income
Capped at 8 times the PASS (Annual Social Security Ceiling)
With a floor of 10 percent of the PASS for lower incomes

Cap for a self-employed (TNS):

10 percent of professional income within the limit of 8 PASS
Plus 15 percent on the fraction between 1 and 8 PASS
A higher cap allowing more deduction

Tax savings simulation

Here is what a 5,000 euros contribution returns according to the marginal tax rate (TMI):

TMI	PER contribution	Tax saving	Real net cost
11 percent	5,000 euros	550 euros	4,450 euros
30 percent	5,000 euros	1,500 euros	3,500 euros
41 percent	5,000 euros	2,050 euros	2,950 euros
45 percent	5,000 euros	2,250 euros	2,750 euros

The higher your marginal bracket, the more advantageous the PER. At 11 percent, the tax interest is low and a life insurance may be preferable to keep flexibility.

Exit taxation: watch the mechanics

The entry deduction is not a permanent gift, it is a deferral. At exit, taxation depends on the chosen mode.

Capital exit

The capital is split into two parts:

Deductible contributions: taxed at the progressive income tax scale (without allowance)
Gains: taxed at the flat tax of 30 percent

Annuity exit

The annuity is taxed at the progressive income tax scale after a 10 percent allowance (capped).

If your TMI is stable between working life and retirement, the PER simply defers tax without real savings. The real gain happens when your TMI drops at retirement (41 percent down to 30 percent for instance).

The 6 cases of early release

The PER capital is locked until retirement, except for 6 cases allowing early exit:

Main residence purchase (voluntary contributions only)
Death of spouse or PACS partner
Disability (2nd or 3rd category) of the saver, spouse or child
End of unemployment rights
Over-indebtedness (commission decision)
Cessation of non-salaried activity following judicial liquidation

In these 6 cases, exit taxation can be lighter, particularly for disability and death (possible exemption from income tax).

Choosing your PER: 5 essential criteria

Not all PER contracts are equal. Here are the points to compare before signing:

Contribution fees: ideally 0 percent, to refuse beyond 3 percent
Annual management fees: aim for under 1 percent on euro fund and under 1 percent on unit-linked
Arbitrage fees: should be free or very low
Choice of underlyings: minimum 30 unit-linked including ETFs and SCPIs
Managed options: secured, balanced, dynamic grid clear and transparent

Online PER contracts offer the best rates. Conversely, branch-sold bank PERs often combine 3 percent entry fees with high management fees, heavily degrading the net return.

PER or another wrapper: when to choose what?

The PER is a powerful tool, but not always optimal. Quick comparison:

PER vs life insurance: PER more tax-advantageous for high TMI, life insurance more flexible and better for transmission (152,500 euros exempt per beneficiary)
PER vs PEA: PEA better for long-term equity investment with exemption after 5 years, PER better for immediate deduction
PER vs SCPI: different logics, SCPIs offer current yield, PER capitalises

To deepen the tax comparison, see our dedicated article PER vs life insurance. For global wealth optimisation, see our analysis of IFI 2026.

Strategy: when to feed your PER?

Some contribution principles:

Earlier in the career to benefit from compounding over 25-30 years
At year end to adjust the contribution based on actual income and available cap
After a buyback or exceptional gain (bonus, capital gain) to offset increased taxation
Before retirement to smooth out the saving effort over several years

Contribution can be free, scheduled monthly or exceptional. Scheduled contributions facilitate saving discipline and smooth the entry point on unit-linked.

Classic mistakes to avoid

Subscribing to a branch-sold bank PER without comparing fees
Maximising contribution at low TMI (11 percent) without real tax benefit
Neglecting free management and staying in managed mode with high fees for the entire duration
Forgetting the unused cap of previous years (rolls over 3 years)
Making a 100 percent capital exit in one go at the risk of spiking the TMI of the exit year

The PER is a long-term tool, powerful for households taxed at 30 percent and above, to be used with discernment. The ideal is to combine PER (for deduction) and life insurance (for flexibility and transmission). Always compare contracts before subscribing.

Useful links

PER vs life insurance, Life insurance: 5 criteria, Understanding IFI 2026, Livret A vs LDDS, Glossary.