PER: cut your tax before 31 December.
The French retirement savings plan (PER) lets you deduct your payments from your taxable income. How much to pay in, how much you save, and what has changed since 2026: the essentials in a few minutes.
Every year-end, the same question comes up: how can I legally pay less income tax? For many of my clients, the retirement savings plan, the PER, is the simplest answer. You still need to know how much to pay in, and who really benefits.
1. How it works
Payments into a PER are deducted from your taxable income, up to a ceiling. The saving depends on your tax bracket: the higher it is, the bigger the benefit.
2. How much can you pay in?
Your personal ceiling is shown on your latest tax notice, under “plafond épargne retraite”. Here are the main points.
Employees and retirees
Generally 10% of your previous year's earned income, with a minimum of €4,710, even without any earned income.
Self-employed
Self-employed workers have a higher ceiling, based on their profit.
Unused ceilings
Ceilings from previous years that you did not use can be carried forward. They are shown on the same tax notice.
“The PER is an excellent tool, as long as you get the dose right. I always look at your tax bracket today and the one you will have in retirement.”Roland BOUVIER
3. Good to know before paying in
After 70, no more deduction
Since 1 January 2026, payments made after age 70 are no longer deductible. If you are approaching that age, these are your last years to benefit.
Savings locked until retirement
Apart from cases set by law, such as buying your main home or life accidents, the money becomes available at retirement, as a lump sum or an annuity.
Tax deferred, not cancelled
On withdrawal, the deducted amounts are taxed. The PER is therefore most worthwhile if your tax bracket falls in retirement.
Pay in before 31 December
To reduce tax on your 2026 income, the insurer must receive the payment before the end of the year. Don't leave it to the last minute.
- A PER payment reduces your tax, all the more so if your bracket is high.
- Your ceiling is on your tax notice; unused ceilings carry forward.
- Since 2026, payments after 70 are no longer deductible.
General information article, not personalised advice. Tax rules in force on 30 October 2026, which may change with the 2027 Finance Act. Sums invested in unit-linked funds carry a risk of capital loss.
