PER Transfer Simulator

The simulator compares the cost of keeping your current plan (high management fees) with the cost of transferring to a more competitive new PER:

• Transfer fee: 1% of capital if the plan is less than 5 years old, 0% thereafter (PACTE law)
• Annual savings: Difference in management fees between the old and the new plan, applied to the capital
• 10-year gain: Cumulative annual savings over 10 years, minus any transfer fees

The transfer is worthwhile when the long-term savings on management fees exceed the transfer cost. The larger the fee gap and the higher the capital, the more beneficial the transfer will be.

The 2019 PACTE law created the Plan d'Epargne Retraite (PER) as a single product designed to replace all legacy retirement savings schemes. It also established a transfer right allowing savers to consolidate their old plans into a modern, flexible individual PER.

Products eligible for transfer to a PER

All legacy retirement savings products can be transferred to an individual PER. This includes the PERP (Plan d'Epargne Retraite Populaire), the Madelin contract (for self-employed workers), the PERCO (collective retirement savings plan), the Article 83 contract (defined-contribution supplementary pension), as well as specific schemes like Prefon (civil servants), COREM and CRH. The transfer preserves the tax nature of the contributions: amounts that were tax-deducted at entry remain identified as such in the new PER, ensuring continuity of exit taxation.

Transfer fees

The PACTE law strictly regulates transfer fees to protect savers. If your plan is less than 5 years old, the former manager may charge a transfer fee capped at 1% of the balance. Beyond 5 years, the transfer is free by law (0% fees). This rule is a major step forward for savers who were previously locked into high-fee contracts. It is therefore strategically wise to wait for the 5-year mark before transferring, unless the management fee gap is large enough that the annual savings far outweigh the transfer cost.

Advantages of transferring

Transferring to a PER offers several significant benefits. First, consolidating multiple plans into a single PER greatly simplifies the management and tracking of your retirement savings. Second, next-generation PERs generally offer lower management fees and a wider range of investment options (ETFs, index funds, diversified managed portfolios). Third, the PER allows lump-sum exit, which was not possible with the PERP or Madelin contract (mandatory annuity exit in almost all cases). This flexibility alone can justify the transfer for many savers.

Points to watch

Transferring is not always advantageous and certain aspects deserve careful attention. Some legacy plans include guarantees that will be lost upon transfer: guaranteed rate on the euro fund (sometimes above 2% on old contracts), floor guarantee in case of death, or a favourable mortality table for annuity conversion. If your old plan offers a high guaranteed rate, the transfer may prove counterproductive. Similarly, the contractually guaranteed mortality table on certain old PERPs may provide a higher annuity than one calculated with current tables, which factor in increased life expectancy.

Transferring a legacy retirement plan to an individual PER follows a procedure governed by law. Here are the steps to follow for a smooth transfer.

Step 1: Request a statement of rights from the former manager

Before any steps, ask your former manager for a detailed statement of your plan. This document should include the balance, the breakdown between voluntary and mandatory contributions, the management fees applied, the plan age, any attached guarantees (guaranteed rate, floor guarantee, mortality table) and the applicable transfer fees. This document is essential for objectively comparing your current plan with PER offers on the market.

Step 2: Compare fees and funds of the new PER

Take the time to compare several PERs on the following criteria: unit-linked management fees (from 0.30% to over 1% depending on the plan), entry fees (0% at online brokers to 3-5% at traditional banks), quality and diversity of investment options (number of available ETFs, high-performing euro fund, accessible REITs), quality of managed portfolios, and online platform usability. Online PERs typically stand out for their competitive fees, while bank or insurer PERs often offer more human support.

Step 3: Initiate the transfer with the new provider

Once you have chosen your new PER, the new provider handles most of the administrative steps. You need to provide your old plan details (number, manager name, statement) and sign a transfer mandate. The new manager will then contact the former provider to initiate the transfer. You generally do not need to contact your old insurer directly.

Step 4: Timeline and verification

The former manager has a legal deadline of 2 months to carry out the transfer from receipt of the complete request. In practice, the average observed delay is 2 to 3 months. If this deadline is exceeded, the former manager must pay late interest at the legal rate plus 5 points, which represents a significant penalty. Once the transfer is complete, carefully verify the correct allocation of funds across the PER compartments (compartment 1 for voluntary contributions, compartment 2 for employee savings, compartment 3 for mandatory contributions), as each compartment follows different exit and tax rules.

Transferring a legacy retirement savings plan to an individual PER follows precise rules defined by the PACTE law and its implementing decrees. Understanding these rules allows you to carry out the transfer under the best conditions and avoid pitfalls that could reduce the benefit of the operation.

From PERP to PER: transfer specifics

The PERP (Plan d'Epargne Retraite Populaire) is the product that transfers most naturally to an individual PER, as both share a similar logic of deductible voluntary contributions. Upon transfer, the entire PERP balance is allocated to compartment 1 of the PER (voluntary contributions). Amounts that were deducted at entry retain that status and will be taxed at exit under the same rules as deducted PER contributions. The main advantage of the transfer is gaining the option to withdraw entirely as a lump sum, which the PERP only allowed up to 20% (except for primary residence and small annuity exemptions).

From Madelin and Article 83 to PER: special cases

The Madelin contract, reserved for self-employed workers (TNS), also transfers to compartment 1 of the PER for the voluntary contribution portion. The main gain is, again, access to lump-sum withdrawal, as the Madelin required a 100% annuity exit. For the Article 83 contract (employer-sponsored defined-contribution pension), the transfer is more complex: mandatory employer and employee contributions are allocated to compartment 3 of the PER (mandatory contributions), which can only be withdrawn as an annuity. Only any voluntary contributions join compartment 1 and benefit from lump-sum withdrawal. It is therefore important to verify the breakdown of amounts before initiating an Article 83 transfer.

The fee cap and the importance of timing

The 5-year rule introduced by the PACTE law is a major optimisation lever. Beyond 5 years of plan age, the transfer is free. Below that, fees are capped at 1% of the balance. For a plan worth 80,000 euros with less than 5 years of age, transfer fees amount to a maximum of 800 euros. If the annual management fee gap between the old and new plan is 0.6% (for example 1.2% versus 0.6%), the annual saving is 480 euros. The transfer therefore pays for itself in under 2 years, even with the transfer fee. However, if the plan age is approaching 5 years (4 years and a few months), it is often wiser to wait a few months to transfer at no cost.

Old PER vs new PER: comparing the benefits

New PERs, particularly those distributed by online brokers, offer significant advantages over legacy retirement products. Unit-linked management fees are generally between 0.50% and 0.60% compared to 0.80% to 1.50% for old plans. The range of investment options is much wider: low-cost index ETFs (0.20 to 0.30% internal fees), REITs, bond funds, and personalised managed portfolios. Entry fees are often zero at online providers, compared to 2 to 4% on old bank-based Madelin or PERP plans. Finally, the usability of online platforms, the ability to manage switches in real time, and fee transparency are significant practical advantages in day-to-day use.