The PER ("Plan Epargne Retraite" or "Retirement Savings Plan") is an investment enabling you to set aside capital for your retirement and benefit from a tax advantage right from the start. The amounts invested (within the limit of an annual ceiling) are in fact deducted from your net taxable income. For example, a private individual who has a marginal tax band of 30% and pays 10,000 € per year will benefit from a tax reduction of 3,000 €.

The quid pro quo of this tax benefit is that the sums are blocked until the legal age of retirement (except for exceptional cases of early release). Given that this investment is of long duration, it is essential to make a careful choice of the instruments within the PER. By way of example, one of the asset categories that we prefer is Private Equity, an investment whose duration is 10 years, but which offers prospects for much higher yields than those of traditional equity funds.

Private Equity used to be a type of investment reserved for the very wealthy, though it has become more widespread over the past few years. Solutions are now eligible for PER contracts. The aim of capital investment is to assist unlisted companies to develop or secure their activities. France Invest estimates performances at 14.2% net per year over 10 years, which is significantly higher than those of the CAC 40 stock market (10.4%)*.

Private Equity and PER are thus very complementary solutions (both of them blocked) with which to build retirement assets, for example, on condition that one accepts the risk implied by this investment. This combination enables the investor to build a substantial amount of capital by using tax leverage and the potential for return on investment capital.

*Past performances do not predict future performances.