It is not only in the sporting field that transfers are carefully scrutinized. In terms of investments, and especially retirement savings, the subject of contract transfers is becoming increasingly important. But there is still plenty of room for improvement, because to date, less than one in 10 transfers results in a change of manager or insurer. A missed opportunity to switch to a more competitive and above all less expensive contract.
Gone to stay…
Fans of football – and many other sports – get excited every summer for transfer season. But team changes are not just about Kylian Mbappé and his colleagues. More and more savers are also choosing to look elsewhere, or at least to change their contract. And in particular a retirement savings contractthanks to the possibility of transferring old products (PERP, Madelin, Perco, article 83, etc.) to a brand new retirement savings plan (PER)… Or almost.
In effect, transfers of existing contracts to a new PER have an unfortunate tendency to be made with the same insurer or manager. As a result, savers concerned about their retirement do indeed change contracts, but not really teams. “Gone to stay”, as a famous sports daily would title. According to data compiled by the MoneyVox site, “real” transfers from an old retirement savings contract to a PER insured or held by a competitor would thus represent less than 1 PER open in 10.
In other words, in most cases, savers change contract but not manager. And therefore do not exploit the possibilities offered by the option of transferring all their retirement savings to a single PER, with lowest costs and a more complete financial offer (access to the best SCPIs and SCIs on the market or to more competitive management, for example).
As many advantageous conditions as you can find on a contract such as Best Liberty PER rate: 0% entry or deposit fees*, free arbitrations carried out online, access to around thirty real estate media and more than 680 Unit-Linked supports… Not to mention a funds in euros above the average (1.65% in 2021**) accessible without constraint of payment in Units of Account.
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4 excellent reasons to transfer your retirement savings to one of the best PERs on the market
1. Pay less fees
Like life insurance, retirement savings are too often penalized by excessive fees. Fees charged for the opening of the contract, at each payment, at each arbitration, not to mention above-average management fees. A particularly indigestible mille-feuille.
In this respect, transferring an old contract charged with fees to a PER held by the same manager does not improve the situation. The odds of getting a criminally priced contract at a lower-fee PER like the best Freedom PER rates are pretty slim — if not non-existent — without switching intermediaries.
A transfer to a Retirement Savings Plan (PER) can be chargeable, for old PERP, Madelin and others under 10 years old (5% of the outstanding amount of the maximum contract). A bill that will often be more than offset by the savings generated in the long term by a PER at reduced costs, and in particular no fees on payments. In addition, contracts over 10 years are transferable for free, even if you go for the competition.
Finally, if your old retirement savings contract(s) have already been converted into PER by the manager, it is still possible to transfer a PER to another PER. The price to pay is even the lowest: 1% of the outstanding amount of the maximum contract, contracts of more than 5 years being exempt from transfer costs.
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2. Invest your savings in optimal conditions
Too often, savers who have taken out life insurance with a banking intermediary find themselves with a contract not only loaded with fees but also particularly limited in terms of investment supports. A poorly performing euro fund, a few units of account here and there, and not much else.
Unfortunately, retirement savings contracts are no exception to this trend. And too often, the saver is not able to save for his old age as he wishes. Restricted, or even non-existent, access to paper stone (SCPI, SCI, OPCI), meager selection of poorly performing UCITS, absence of stock market trackers… So many obstacles to good management of your savings.
Hence the interest of taking advantage of the possibility of transferring existing retirement savings to a new PER with a rich and complete offer, accessible under the best conditions. With better Liberty PER rates, you can invest in around twenty SCPIs (including ActivImmo, Epargne Pierre, PF Grand Paris or Primovie) with:
- the payment of 100% of the rents on the fund in euros;
- An effective investment from the 1st day of the month following subscription (compared to several months of vesting period in a direct investment);
- Of the lower subscription fees than buying coins directly ;
- Of the only 0.5% contract management fee.
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3. Consolidate all your retirement savings into a single contract
With the multitude of existing old retirement savings products, it was impossible to bring this together on a single contract, delegated to a single manager. Between the plans opened within the framework of the company (PERCO, article 83), themselves potentially numerous if you have known several employers, and the individual products (PERP, Madelin, Préfon, etc.), difficult to find… And to know precisely how much you have dedicated to preparing for the end of your professional career.
The PER aims to solve this problem. It makes it possible to transfer all the old products on a single envelope. A simpler solution, which provides more readability to savers and also allows them to optimize the management of their financial assets, as soon as they choose one of the best PERs on the market.
4. Benefit from the capital outflow at retirement and the advantages of the PER
Finally, a major advantage of transferring an old retirement savings contract to a new individual PER is to be able to benefit from the release of capital savings***, rather than life annuities, once retired. And this, in one or more installments with the split capital exit. This option makes it possible to lighten the burden of taxation on exit, the capital being taxed at the income tax scale while the interest is taxed at the PFU of 30%. This tax on exit acts as a counterpart to the fine tax gift granted “on entry”. A know-how deductibility of pension payments from taxable income, which allows taxes to be reduced during working life, when they are usually higher than once at the time.
Remember that the old retirement savings products do not offer such flexibility in the release. Madelin contracts, for example, can only be released in life annuities. The PERP is a little more flexible, but the capital outflow is capped at 20% (excluding the purchase of the main residence for people who have not been owners for at least 2 years).
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*Excluding specific supports indicated in the general conditions of the contract
**Annual rate of return net of contract management fees of 2% per year, excluding social and tax deductions. The Spirica Euro PER New Generation Fund offers an annual capital guarantee less management fees of 2%, i.e. a guarantee of 98%. Past performance is no guarantee of future performance.
***The part corresponding to compulsory payments (on an article 83 for example) is obligatorily subject to an exit in life annuities
Meilleurtaux Liberté PER is an Individual Retirement Savings Plan in the form of a multi-support type group life insurance policy distributed by Meilleurtaux Placement and insured by Spirica (100% subsidiary of Crédit Agricole Assurances), SA with share capital of 231 044,641 euros, company governed by the insurance code, RCS Paris n° 487 739 963, 16-18 boulevard Vaugirard, 75015 Paris. The guarantees of this contract can be presented in Account Units, in shares of diversification provisions and in euros. For the part invested in units of account and in shares of diversification provisions, the amounts invested are not guaranteed and are subject to upward or downward fluctuations depending in particular on the evolution of the financial markets.
The main characteristics of the Meilleurtaux Liberté PER contract and its various investment options are set out in the Key Information Document and the Specific Information Documents available on placement.meilleurtaux.com or on the Insurer’s website https:/ /www.spirica.fr.