The Ministry of Economy has decided to extend the conditions that allow holders of certain retirement savings plans (PER) to benefit from a lump sum payment, the entire amount at one time, instead of a monthly life annuity, according to a decree published this Friday. .
The decree published in the Official Gazette specifies that small life annuities already in the process of liquidation – that is to say that the holder, already retired, has begun to collect them – will be “susceptible to redeem”.
In this way, the holder will be able to collect the life annuity in its entirety, “while this redemption could not be done until then only at the time of retirement,” underlines a press release sent by Bercy.
The PER is a “tunnel” product, which is considered in the long term. The contributions are free, but they will not be recoverable before retirement age, except in exceptional cases such as the purchase of a habitual residence or well-defined “life accidents”: disability, over-indebtedness, extinction of unemployment insurance…
Investor consent
At the time of retirement, two options are possible: an outflow of capital, a true innovation of this product compared to its predecessors PERP and Madelin contracts, but highly taxed, or a gradual outflow over time, in the form of a life annuity. .
In addition, insurers that distribute and manage PER will now have to obtain the saver’s consent and will no longer be able to impose a capital release on the saver, as was possible until now for smaller annuities.
These adjustments “will better protect the savings of retirees with a small pension within the framework of their retirement savings plan,” said Economy Minister Bruno Le Maire, quoted in a press release.
This “will protect the fruit of your labor and strengthen your freedom of choice between the capital exit or the life annuity,” he continued.
Source: BFM TV
