How much should one contribute to their retirement savings plan (PER)?
The retirement savings plan (PER), established by the Pacte law (Action Plan for Business Growth and Transformation) in October 2019, is a system that allows individuals to prepare for additional income during retirement. It also serves as an effective means to reduce one’s tax liability. This is because the amounts deposited into the PER can be deducted from taxable income.
On the flip side, capital will be taxed upon withdrawal. That’s why this deductibility is particularly effective for households anticipating a significant decrease in their retirement income – the tax savings during active life will be greater than the taxation during retirement.
However, there are limitations to this option: you can deduct a maximum of 10% from your net professional income from the previous year, which is capped at eight times the annual limit of the Social Security. Therefore, the retirement savings cap cannot exceed 32,908 euros for contributions made in 2023.
Your personalized ceiling for payments made in 2023 is indicated on your latest tax notice, available since this summer on the Impots.gouv.fr website. The unused ceilings from the past three years (2020, 2021, and 2022) are also included, as they can be accumulated. However, please note that if the 2020 ceiling is not used, it will be lost in 2024. To avoid this, you must deposit at least the 2023 ceiling this year, in addition to the 2020 ceiling.
Plafond du conjoint
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A married or civil union couple can combine their limits. “This can be a useful trick to protect the spouse with lower income,” says Amandine Chaigne, president of Ade-ci Family Office. The one with higher income and retirement savings limit will benefit their partner to help them build a higher retirement fund.
« En revanche, il n’est pas possible d’utiliser le plafond de ses enfants pour verser sur son propre PER ! », rappelle Mme Gaillard Renard. Les mineurs et les majeurs rattachés au foyer disposent pourtant de leur propre plafond : 4 114 euros en l’absence de revenus. Mais pour en profiter et augmenter ses déductions, il faut ouvrir un PER à leur nom et y déposer des sommes qui, alors, leur appartiendront. « Que l’argent soit bloqué tout en pouvant être récupéré pour financer l’achat du logement peut rassurer certains parents ou grands-parents », souligne Mme Chaigne. L’enfant devra cependant s’acquitter de l’impôt à ce moment-là.
