The Climate Future Savings Plan (PEAC): A New Savings Product Designed for Young People
Starting July 1, 2024, young people under the age of 21 will be able to take advantage of a new savings product, the Climate Future Savings Plan (PEAC).
Introduced by the Green Industry Act, this program aims to encourage young people to invest in projects related to the ecological and energy transition.
PEAC: A Flexible and Diversified Savings Plan
The PEAC differs from regulated savings accounts such as the Livret A or the Livret de Développement Durable et Solidaire (LDDS). These accounts offer a fixed rate of return set by the government. In contrast, the PEAC is more similar to a Stock Savings Plan (PEA) or a Retirement Savings Plan (PER), offering subscribers the opportunity to invest their savings in a variety of assets such as stocks, bonds, and so on.
However, unlike regulated savings accounts, the principal in a PEAC is not guaranteed and is subject to fluctuations in the financial markets. As such, young savers should be aware of the risks associated with this type of investment.
A savings plan available to people up to age 30
The PEAC is available exclusively to individuals under the age of 21. It automatically closes when the account holder turns 30. When opening a PEAC, the account holder must specify an anticipated maturity date. This maturity date may be changed at any time, provided that the new date does not extend beyond the account holder’s 30th birthday.
The PEAC offers young people an opportunity to invest in projects related to the ecological and energy transition. This new savings product provides flexibility and a variety of investment options, and is available to individuals up to age 30. However, it is important to consider the risks associated with fluctuations in the financial markets before signing up for this type of savings plan.
