PER: Complete 2026 Guide (How It Works and Withdrawal Options)

Introduction: Why the PER Has Become Essential

The Plan d'Epargne Retraite (PER) -- France's individual retirement savings plan -- is now the primary vehicle for personal retirement savings in France. Created by the PACTE law of May 22, 2019, it replaced all the older retirement savings schemes (PERP, Madelin contracts, PERCO, article 83) in an effort to simplify and modernize the landscape. By the end of 2024, over 10 million PER accounts had been opened in France, with total assets under management exceeding 100 billion euros.

This comprehensive guide explains how the PER works in 2026: its mechanisms, tax treatment on contributions and withdrawals, how to access your savings, and the pros and cons of this investment vehicle. Whether you are a salaried employee, self-employed, or a civil servant, this guide will give you all the information you need to decide whether the PER is right for your situation.

The History of the PER: From Complexity to Simplification

The Former Retirement Savings Schemes

Before the PACTE law, France's retirement savings landscape was fragmented across several separate schemes, each designed for a specific audience:

• The PERP (Plan d'Epargne Retraite Populaire): created in 2003 by the Fillon law, it was open to everyone but required withdrawal as a lifetime annuity (with limited exceptions for purchasing a primary residence or for small annuities).
• The Madelin contract: reserved for self-employed workers (TNS -- travailleurs non salaries), it offered more generous tax deductions but with mandatory annuity withdrawal.
• The PERCO (Plan d'Epargne pour la Retraite Collectif): a company-based scheme funded through profit-sharing, which did allow lump-sum capital withdrawal.
• Article 83 contracts: employer-sponsored defined-contribution contracts, with mandatory annuity withdrawal only.

The PACTE Law Revolution

The PACTE law (Plan d'Action pour la Croissance et la Transformation des Entreprises), enacted on May 22, 2019, created the PER with three main objectives:

1. Simplify by consolidating all the older schemes under a single wrapper.
2. Add flexibility by systematically allowing lump-sum capital withdrawal at retirement.
3. Improve portability by enabling transfers between compartments and between providers.

Since October 1, 2020, it has no longer been possible to open new PERP, Madelin, or PERCO contracts. Existing contracts can, however, be kept or transferred into a PER.

The Three Compartments of the PER

The PER is structured around three compartments, corresponding to different funding sources:

Compartment 1: Voluntary Contributions

This is the individual PER compartment (PERIN). It receives contributions you make on your own initiative. These contributions are deductible from your taxable income (within annual limits), unless you opt out of the deduction.

Practical example: Marc, a senior executive with a net taxable income of 75,000 euros, contributes 5,000 euros per year to his Linxea Spirit PER. He deducts these 5,000 euros from his taxable income, bringing his tax base down to 70,000 euros.

Compartment 2: Employee Savings

This compartment receives amounts from employer-sponsored savings schemes:

• Profit-sharing (participation)
• Performance bonuses (interessement)
• Employer matching contributions (abondement)
• Rights from a time savings account (CET -- compte epargne-temps)
• Voluntary employee contributions within the PERECO framework

Compartment 3: Mandatory Contributions

This compartment receives mandatory contributions from both employer and employee under a mandatory employer-sponsored PER (PERO). It corresponds to the former article 83 scheme.

How the PER Works in Detail

Opening a PER

The individual PER is open to anyone, with no age requirement (a PER can be opened for a minor child), no employment status requirement, and no income requirement. You can open a PER through:

• An insurance company (insurance-based PER, which works like an assurance vie -- France's popular life insurance savings wrapper)
• An asset manager (bank-based PER, which takes the form of a securities account)

In practice, the vast majority of PERs are insurance-based, as they provide access to the fonds en euros (a guaranteed-capital euro fund unique to French insurance contracts) in addition to unites de compte (unit-linked funds invested in stocks, bonds, real estate, etc.).

Investment Options

On an insurance-based PER, you have access to:

• The fonds en euros: guaranteed capital with moderate returns (between 2.5% and 4.5% in 2024, depending on the contract). The best euro funds for PER accounts are those of Spirica (available through Linxea Spirit PER) and Suravenir (available through Linxea PER Avenir).
• Unites de compte (unit-linked funds): equity funds, bond funds, real estate (SCPI, SCI, OPCI -- types of real estate investment trusts), private equity, and thematic funds. Online PER contracts offer access to low-cost ETFs, unlike traditional bank PERs which are typically limited to the bank's own in-house funds.

Target-Date Management (Gestion Pilotee a Horizon)

By default, the PER uses target-date management (also called horizon-based management). This investment approach automatically adjusts your portfolio allocation based on your age and projected retirement date:

• Far from retirement (more than 10 years): aggressive allocation, with a high proportion of equities (up to 80-100% depending on the profile).
• Approaching retirement (5-10 years): progressive de-risking, with an increasing share of euro funds and bonds.
• Near retirement (less than 5 years): very conservative allocation, mostly in euro funds.

Three profiles are generally available: conservative (prudent), balanced (equilibre), and aggressive (dynamique). You can also choose self-directed management (gestion libre) if you prefer to select your own investments.

Example: Sophie, age 35, opens a Linxea Spirit PER with aggressive target-date management. Her initial allocation is 90% equities (via MSCI World and S&P 500 ETFs) and 10% euro fund. By age 55, she will have shifted to approximately 50% equities and 50% secure investments. By age 62, her allocation will be 80% euro fund.

PER Fees

Fees are a crucial factor in choosing a PER. The difference between an online PER and a traditional bank PER can cost tens of thousands of euros over a 20-30 year horizon.

Comparison of the Best PER Contracts in 2026

Our Top 3 PER Picks

1. Linxea Spirit PER -- The Best All-Round PER

The Linxea Spirit PER, underwritten by Spirica (a subsidiary of Credit Agricole), is the most comprehensive PER on the market:

Strengths:

• Among the lowest fees: 0% entry fees, 0.50% unit-linked management fees, 0.50% euro fund management fees
• Exceptional range of unit-linked funds: over 700 options including 40+ ETFs, 30+ SCPI real estate funds (Remake Live, Iroko Zen, Corum Origin...), and private equity (Eurazeo, Altaroc)
• Strong euro fund: Euro Nouvelle Generation Spirica (3.13% in 2024 on the assurance vie contract, with similar returns expected on the PER)
• Choice of self-directed or managed investment
• Free and unlimited fund switches (arbitrages)

Weaknesses:

• Minimum 25% allocation to unit-linked funds on each contribution
• Online interface is adequate but not the most modern

Ideal for: self-directed savers who want maximum investment choice (ETFs, SCPI, private equity) at the lowest cost.

2. PER Placement-direct -- The Widest Range of Unit-Linked Funds

The PER Placement-direct, underwritten by SwissLife, stands out for its unmatched range of investment options:

Strengths:

• Over 1,000 unit-linked funds including 50+ ETFs and 20+ SCPI
• Strong SwissLife euro fund: 3.05% in 2024 (+ potential bonus depending on unit-linked allocation)
• 0% entry fees, 0.50% unit-linked management fees
• Very solid insurer (SwissLife, solvency ratio > 200%)
• Self-directed or managed investment

Weaknesses:

• Minimum initial contribution of 900 EUR
• Interface less intuitive than Boursorama

Ideal for: experienced investors who want the widest possible range of investment options.

3. Boursorama PER -- The Best for Simplicity

The Boursorama PER (formerly Matla), underwritten by Generali, is the natural choice for Boursorama customers who want to keep everything in one place:

Strengths:

• Ease of use: intuitive Boursorama interface, all-in-one with your bank account
• 0% entry fees
• Strong target-date managed investment (delegated to Edmond de Rothschild AM)
• Euro Exclusif euro fund from Generali

Weaknesses:

• Unit-linked management fees of 0.75% (higher than Linxea Spirit PER at 0.50%)
• Very limited range of unit-linked funds in self-directed mode (~50 options)
• Primarily designed for managed investment, less suitable for self-directed management
• No direct SCPI real estate funds

Ideal for: Boursorama customers who want a simple, all-in-one PER with managed investment.

Long-Term Impact of Fees: A Concrete Comparison

The difference is striking: over 25 years, Linxea Spirit PER generates 75,000 EUR more than Credit Agricole's PER, with identical contributions of 5,000 EUR per year. This gap results from the combination of 0% entry fees (vs 3%), lower management fees (0.50% vs 0.96%), and low-cost ETFs (0.18% vs 1.80% for in-house actively managed funds).

PER Tax Treatment: The Upfront Advantage

How the Tax Deduction Works

The PER's main attraction is the deductibility of voluntary contributions from taxable income. In practical terms, the amounts you contribute reduce your net global income subject to income tax (impot sur le revenu).

The tax savings depend directly on your marginal tax rate (TMI -- taux marginal d'imposition, the rate applied to the highest portion of your income under France's progressive tax system):

Practical example: Nathalie, with a TMI of 30%, contributes 10,000 euros to her Linxea Spirit PER in 2026. Her tax savings will be 3,000 euros (10,000 x 30%). In other words, her 10,000 euros invested really only costs her 7,000 euros. And with Linxea Spirit PER, 100% of the 10,000 EUR is invested (0% entry fees), unlike a traditional bank PER where 3% (300 EUR) would be deducted upfront.

Deduction Limits

Contributions are deductible up to an annual ceiling:

For employees: the higher of:

• 10% of net professional income from year N-1 (capped at 8 times the PASS -- Plafond Annuel de la Securite Sociale, France's annual social security ceiling)
• 10% of the PASS for year N-1

In 2026 (2024 income, PASS 2024 = 46,368 EUR):

• Floor: 4,637 EUR (10% of PASS)
• Maximum ceiling: 37,094 EUR (10% of 8 x PASS)

For self-employed workers (TNS): a specific, higher ceiling applies (see our dedicated article).

The Option Not to Deduct

You can choose not to deduct your contributions. In this case, you receive no tax advantage at entry, but the withdrawal will be more favorable (the corresponding capital will not be taxed on exit). This option is relevant if you are not subject to income tax or are in a low tax bracket.

Withdrawing from Your PER: Capital, Annuity, or Both

Lump-Sum Capital Withdrawal

Since the PACTE law, you can withdraw your savings entirely as a lump sum at retirement (except Compartment 3, which requires an annuity). The withdrawal can be made:

• All at once (single lump sum)
• In installments (scheduled withdrawals over several years)

Tax treatment of lump-sum withdrawal (deducted contributions):

• The capital corresponding to deducted contributions: taxed at the income tax scale (without social charges)
• Capital gains: subject to the PFU (prelevement forfaitaire unique -- France's flat tax) of 30% (12.8% income tax + 17.2% social charges) or the progressive scale if you choose

Example: Jean-Pierre, retired, withdraws 100,000 euros from his Linxea Spirit PER, of which 70,000 euros are deducted contributions and 30,000 euros are capital gains. The 70,000 euros are added to his taxable income for the year. The 30,000 euros in capital gains are subject to the 30% PFU, amounting to 9,000 euros in taxes.

Staged withdrawal strategy: rather than withdrawing 100,000 EUR all at once (which would push him into a much higher tax bracket), Jean-Pierre is better off spreading it over 4-5 years (20,000 EUR per year) to stay in a reasonable tax bracket.

Lifetime Annuity Withdrawal

You can opt for a lifetime annuity (rente viagere), paid until your death. The annuity is taxed as a retirement pension (progressive income tax scale after a 10% deduction).

Various types of annuities are available:

• Simple lifetime annuity: payments until death
• Reversible annuity: continued to the surviving spouse (with a reduction)
• Annuity with guaranteed payments: guaranteed payments for a minimum period
• Stepped annuity: amount that changes over time

Combining Capital and Annuity

Nothing prevents you from combining both: withdrawing part as a lump sum and converting the rest into an annuity. This is often the most balanced strategy.

Example: Francoise has 200,000 euros in her Linxea Spirit PER at retirement. She withdraws 80,000 euros in staged capital payments over 4 years (20,000 euros per year) to fund renovations and travel, and converts the remaining 120,000 euros into a reversible lifetime annuity at 60% for her spouse, which provides approximately 400 euros per month for life.

Early Release Cases

Since the PER is a locked savings product (funds are blocked until retirement), the legislature has provided six early release cases that allow you to access your savings before retirement:

1. Purchase of Your Primary Residence

This is the major innovation of the PACTE law compared to the old PERP. You can unlock your PER (Compartments 1 and 2) to buy your primary residence, whether it is a first purchase or not.

Important: the capital withdrawn is subject to income tax (for deducted contributions) and capital gains to the PFU.

2. Disability of the Account Holder, Spouse, or Children

Category 2 or 3 disability as defined by France's social security system (Securite sociale).

3. Death of Spouse or Civil Union Partner (PACS Partner)

4. Expiration of Unemployment Benefits

Or cessation of self-employed activity following a court-ordered liquidation.

5. Over-Indebtedness

As determined by France's over-indebtedness commission (commission de surendettement).

6. Cessation of Self-Employed Activity (Court-Ordered Liquidation)

For these last five cases (life accidents), early release is fully exempt from income tax (only social charges of 17.2% on capital gains still apply).

Example: Thomas, 42, loses his job and exhausts his unemployment benefits. He can unlock his 35,000-euro PER without any income tax on the capital. Only the capital gains (for example, 8,000 euros) will be subject to social charges of 17.2%, i.e., 1,376 euros.

Advantages and Disadvantages of the PER

Advantages

1. Immediate tax savings: deducting contributions provides a significant tax advantage, especially for taxpayers in the higher brackets (30%, 41%, 45%).

2. Flexible withdrawal options: unlike the old schemes, the PER allows lump-sum capital withdrawal, annuity, or a mix of both.

3. Early release for primary residence: a welcome flexibility that did not exist with the PERP.

4. Portability: you can transfer your PER from one provider to another (free after 5 years). This means you can switch from an expensive bank PER to a Linxea Spirit PER or PER Placement-direct at no cost.

5. Favorable estate planning: in case of death before age 70 on an insurance-based PER, the capital is transferred to designated beneficiaries with a 152,500-euro tax-free allowance per beneficiary (the same rule as assurance vie).

6. Wide range of investments: access to the same investment options as assurance vie (euro funds, unit-linked funds, SCPI, private equity...) on online PER contracts. Over 700 unit-linked funds on Linxea Spirit PER, over 1,000 on PER Placement-direct.

Disadvantages

1. Locked savings: apart from early release cases, your money is tied up until retirement. Over 20-30 year horizons, this is a significant commitment.

2. Taxation at withdrawal: the deduction at entry is only a tax deferral. When you withdraw as a lump sum, the deducted contributions are added back to your taxable income.

3. Tax complexity: between the ceilings, the deduction/non-deduction options, the compartments, and the different withdrawal tax regimes, the PER is not a simple product.

4. Potentially high fees: some PER contracts sold through traditional bank networks (PER Credit Agricole, PER Societe Generale) combine entry fees (2-3%) and high annual management fees (0.96-1.00% on unit-linked funds). Choose online PER contracts instead (Linxea Spirit PER at 0.50%, PER Placement-direct at 0.50%).

5. Not suitable for low tax brackets: for a non-taxable taxpayer or someone at 11%, the tax advantage at entry is minimal or nonexistent, and the taxation at withdrawal may actually be heavier.

Who Should Open a PER?

The Ideal Profile

The PER is particularly well-suited if you meet these criteria:

• Current TMI of 30% or higher
• Expected TMI at retirement lower than your current TMI
• Ability to save for the long term
• Investment horizon of at least 10-15 years

Profiles for Whom the PER Is Less Relevant

• Non-taxable taxpayers or those at 11% TMI
• People who need short- or medium-term liquidity
• Savers who have already maximized their assurance vie and PEA (Plan d'Epargne en Actions -- France's tax-advantaged stock savings plan)

Comparative example: Antoine, 40, TMI 41%, contributes 8,000 euros per year to his Linxea Spirit PER. His annual tax savings are 3,280 euros. Over 24 years (until age 64), he will have contributed 192,000 euros at an actual cost of 113,280 euros. With an average annual return of 5% (after fees of 0.68% thanks to ETFs on Linxea Spirit PER), his capital will reach approximately 365,000 euros at retirement.

Conversely, Claire, 40, TMI 11%, would save only 880 euros per year for the same contribution. The locked savings and withdrawal taxation make the PER far less attractive for her. An assurance vie (Linxea Spirit 2 or Boursorama Vie) would likely be a better choice.

PER and Assurance Vie: Two Complementary Investments

The PER does not replace assurance vie. These two investment wrappers are complementary:

The optimal strategy for many savers is to:

1. Contribute to the PER up to the deduction ceiling (tax optimization) -- Linxea Spirit PER
2. Contribute the surplus to assurance vie (liquidity and estate planning) -- Linxea Spirit 2 or Lucya Cardif
3. Also fund a PEA for European equities

How to Choose Your PER

Essential Criteria

1. Fees: choose PER contracts with no entry fees and annual management fees below 0.7% on unit-linked funds. Linxea Spirit PER (0.50%) and PER Placement-direct (0.50%) are the benchmarks.

2. Euro fund quality: ideally, 2024 returns above 3%. Spirica's euro funds (~3.13%) and SwissLife's (~3.05%) are at the top.

3. Range of unit-linked funds: diversity of options (equities, bonds, SCPI, ETFs...). Linxea Spirit PER (700+ unit-linked funds, 40+ ETFs, 30+ SCPI) and PER Placement-direct (1,000+ unit-linked funds, 50+ ETFs) lead the market.

4. Quality of managed investment: historical performance, choice of profiles. Boursorama PER (managed by Edmond de Rothschild AM) and Yomoni PER (100% ETFs) are strong choices for managed investment.

5. Annuity options: types of annuities available, mortality tables used.

6. User experience: quality of the online portal, simulation tools, customer service. Boursorama PER is the most user-friendly.

Our Recommendation by Profile

Online PER vs Traditional Bank PER

Online PER contracts (Linxea Spirit PER, PER Placement-direct, Boursorama PER) consistently offer:

• 0% entry fees (vs 2-5% at traditional banks: PER Credit Agricole, PER Societe Generale, PER BNP Paribas)
• Lower management fees: 0.50-0.75% (vs 0.80-1.00%)
• Better investment choices: ETFs, SCPI, private equity (vs in-house funds only)

Over a 25-year horizon, the fee difference can represent 20 to 30% more capital at maturity.

Example: Isabelle contributes 5,000 euros per year for 25 years. With a gross return of 6%:

• Linxea Spirit PER (0.50% management fees + 0.18% ETF fees, 0% entry fees): estimated final capital of 236,000 euros
• PER Credit Agricole (0.96% management fees + 1.80% active fund fees, 3% entry fees): estimated final capital of 163,000 euros
• Difference: 73,000 euros, or 45% more with the online PER

PER Transfers

Transferring an Old Contract to a PER

You can transfer your old PERP, Madelin, PERCO, and article 83 contracts to a PER. The transfer lets you benefit from the new rules (lump-sum capital withdrawal, primary residence early release).

Transferring a PER to Another PER

Transferring from one PER to another is possible at any time:

• Before 5 years: transfer fees capped at 1% of the balance
• After 5 years: free transfer

The transfer preserves the tax history of your contributions.

Practical example: if you have a bank PER (Credit Agricole or Societe Generale) with management fees of 0.96-1.00% and no access to ETFs, you can transfer it to Linxea Spirit PER (0.50% management fees, 40+ ETFs) for free if your PER is more than 5 years old. The fee savings will be immediate.

The PER in Case of Death

In case of the account holder's death before retirement:

Insurance-based PER (the majority of PER contracts, including Linxea Spirit PER, Boursorama PER, PER Placement-direct):

• Death before age 70: the capital is paid to designated beneficiaries with a 152,500-euro tax-free allowance per beneficiary (article 990 I of the CGI -- Code General des Impots)
• Death after age 70: a global allowance of 30,500 euros, then inheritance tax on the capital contributed (article 757 B of the CGI)

Bank-based PER: the capital enters the standard inheritance process (no specific allowance).

This is why the insurance-based PER is overwhelmingly preferred, including for its estate planning advantages.

Conclusion: The PER, a Powerful Tool to Use Wisely

The PER is an excellent tool for tax optimization and retirement preparation for taxpayers in the higher tax brackets. Its flexible withdrawal options (capital, annuity, or a mix), the possibility of early release for primary residence purchase, and its portability make it a far more attractive product than its predecessors.

Our concrete recommendations:

• Best all-round PER: Linxea Spirit PER (0.50% management fees, 700+ unit-linked funds, ETFs, SCPI, private equity)
• Widest range of unit-linked funds: PER Placement-direct (1,000+ unit-linked funds, SwissLife euro fund)
• Best for simplicity: Boursorama PER (all-in-one, Edmond de Rothschild managed investment)
• Best managed investment: Yomoni PER (100% ETFs, 1.60% all-in)

However, it is not suitable for everyone. The locked savings, withdrawal taxation, and complexity of the scheme require careful consideration before committing. Do not hesitate to use our simulators to calculate your tax savings and project your retirement capital.

Disclaimer: this article is for informational purposes only and does not constitute investment advice. The information presented is based on regulations in effect at the time of writing (May 2026) and may change. Each situation is unique, and we recommend consulting a wealth management advisor for personalized analysis. The numerical examples are provided for illustrative purposes and do not guarantee future results. Sources: Code des assurances (articles L224-1 et suivants), loi PACTE n 2019-486 du 22 mai 2019, BOFiP-Impots (BOI-IR-BASE-20-50), general terms and conditions of Linxea Spirit PER (Spirica), PER Placement-direct (SwissLife), Boursorama PER (Generali).