The PER or Retirement Savings Plan is a valuable tool for preparing for retirement and benefiting from advantageous taxation. However, the diversity of offers surrounding this system makes its choice complicated for many people. Fortunately, there are specific criteria to take into account to facilitate the operation. Here are a few of them.
Take into account the costs associated with the PER
Given that the PER aims to optimize savings, the first factor to take into account when choosing it is undoubtedly the cost it incurs.
This aspect is essential to maximize the return on your investment in the long term and to choose the best PER on the market.
Payment fees
To make this calculation, several elements must be taken into account, firstly the payment fees which are applied to each deposit of funds that you make into your PER.
This value is not standard and varies from one organization to another. There are even contracts that offer PERs without payment fees, which is a definite advantage for maximizing your savings from the start.
Management fees
After the rates are applied to the payment, management fees are charged within the framework of a PER. They are collected on euro funds and on account units.
Here too, fees can vary from one contract to another, and it is important to compare them because reduced management fees increase the return on your investment over time.
Additional costs
Also, take into account the arbitration fees that apply if you decide to change the distribution of your investments between different media within your PER.
Not forgetting the fees and arrears applied when the payment is released in the form of an annuity.
Evaluate the tax benefits
The reason why the PER is one of the most popular systems is the possibility it offers to optimize the taxation associated with it.
To this end, you can call upon a tax advisor or any other retirement savings specialist to guide you.
These professionals can help you understand the tax implications of your investment decisions and develop a personalized savings strategy, aligned with your long-term goals and tax situation.
Choose your PER according to the type of management and investment vehicles
In addition to financial factors, the type of management and investment vehicles that match your financial goals and risk tolerance are also key factors that come into play when making a decision.
Free management versus managed management
The PER offers the possibility of choosing between free management, where you select the investment vehicles yourself, and managed management.
The latter is entrusted to professionals who adjust the distribution of assets according to market developments and your risk profile.
Managed management is often preferable for those who wish to benefit from the expertise of professional managers without having to actively monitor market developments.
Investment Supports
PERs generally offer a wide range of investment vehicles, including:
- Euro funds with guaranteed capital;
- Units of account (UC) which allow you to invest in shares, bonds, real estate, etc.,
- In some cases, more specific options such as ETFs or SCPIs.
Choosing a PER that offers a diversity of investment vehicles allows you to adapt your savings to your investment strategy and optimize your return potential according to the level of risk you are prepared to accept.