How Can We Explain the Success of the PER?
In 2023, the Retirement Savings Plan (PER) reached two major milestones: 10 million account holders and 300 billion euros in assets under management.
Four years after its introduction, the PER is experiencing rapid growth, partly due to transfers from older products. The results in the coming years will provide a better assessment of this product’s true momentum. Surveys conducted by the Cercle de l’Épargne suggest that savers have a genuine appetite for the PER.
The individual segment of the PER is the largest, with assets under management totaling 59.9 billion euros as of the end of 2023. This segment benefited from significant transfers from former PERP, Madelin, and Préfon plans. Segment 2, related to employee savings plans, had assets under management of 23.4 billion euros, while Segment 3 (mandatory supplemental corporate retirement plans) brought up the rear with assets under management of 19.5 billion euros.
The French public’s concern about the future of the pension system is driving the success of the PER
The French public’s concern about the future of the pension system is contributing to the success of the PER. Nearly three-quarters of them (according to a 2023 survey by the Cercle de l’Épargne) believe that their pensions will not allow them to live comfortably in retirement. This fear is widely shared across all household categories. More than one in two French people say they are saving for retirement. The Retirement Savings Plan (PER) is now among the most attractive products—after life insurance and savings accounts—for planning for retirement, even surpassing real estate. The tax deduction upon contribution and the option to receive a lump-sum payout upon withdrawal also explain its success.
PER Figures for 2023
- Total number of PERs opened: 10 million
- Number of insurance-based PERs (life insurance): 5.5 million
- Number of bank-based PERs (securities accounts): 4.5 million
- Total assets under management in PERs (all types combined): 102.8 billion euros
- Assets under management in Individual PERs (compartment 1): 59.9 billion euros
- Assets under management in Corporate PERs (compartment 2): 23.4 billion euros
- Assets under management in Mandatory PERs (compartment 3): 19.5 billion euros
- Total assets under management in insurance-based PER plans: 77.8 billion euros
- Total outstanding balance on bank PERs: 25 billion euros
- Average outstanding balance per PER: 10,280 euros
(Source: Government, France Assureurs, FranceTransactions.com, as of December 31, 2023)
