Employee savings and company retirement savings plans, driven by the increase in the markets in which these plans are invested, reached an unprecedented level of 180 billion euros at the end of June, indicated on Monday the French Financial Management Association (AFG).
This historical level of outstanding balances “essentially reflects a “market effect,” explained AFG Director of Employee Savings and Retirement, Grégory Miroux, as well as important payments from employers and employees.
In fact, during the first six months of the year, more than 14 billion euros were deposited into business savings plans (PEE) and collective retirement savings plans. They come mainly from participation (+9% to €4.8 billion), profit sharing (+5.2% to €5.4 billion) and corporate contributions (+8.4% to €2.4 billion), But it is voluntary payments that have experienced the greatest increase, with +23% in one year (1.8 billion euros).
More than half of employee savings can be used at any time
These new amounts, two-thirds invested in so-called “equity-oriented” funds, have appreciated since the beginning of the year, such as the CAC 40, which gained 14% in the first half. They are stored in PEE, where the money is generally locked for five years, or in collective retirement savings plans (Perco, Percol), where the money is locked until retirement, with possibilities for early release.
Buybacks are also increasing and reached just over 9 billion euros during the first half of the year, says the AFG. More than 50% of employee savings are available and can therefore be used by savers at any time. Net inflows (difference between payments and refunds) reached €5.2 billion in the first half and the total outstanding amount rose to a record €180 billion. According to the AFG, employee savings and company pensions affect 386,800 companies, which represents an increase of 5.2% in one year.
Source: BFM TV
