Why Life Insurance Remains the French People's Favorite Investment

Published on Thursday, June 27, this survey reveals that 61% of respondents prefer life insurance, followed closely by the Livret A savings account (60%) and the retirement savings plan (57%).
 

A shift in the trend since 2016
 

This year marks a turning point in the preferences of French savers. In fact, for the first time since 2016, life insurance has surpassed the Livret A savings account, which had benefited from an interest rate hike in 2023. This trend can be partly explained by falling inflation, which allows households to reduce their precautionary savings in favor of long-term savings, such as retirement savings.
 

The Retirement Savings Plan (PER), a newcomer to the top three
 

Measured for the first time in this survey, the Retirement Savings Plan (PER) ranks third among the investment options that French people consider attractive. Created five years ago under the PACTE Act, the PER thus ranks ahead of rental real estate investments. The option to withdraw the funds as a lump sum offered by the PER appears to have appealed to a large number of savers.
 

Age-Related Investment Preferences
 

Interest in investments varies by age. Young working adults tend to favor rental real estate, life insurance, and the Livret A savings account, while those over 65 cite life insurance first, followed by the Livret A savings account and rental real estate. A higher-than-average proportion of those under 25 consider stocks and cryptoassets to be attractive investments.
 

Retirement savings are on the rise, but there are concerns about the future
 

Among the non-retirees surveyed, 58% say they are saving money for retirement, compared to 51% in 2023. Of these, 32% say they do so regularly, compared with 26% in 2023. Twenty-one percent of respondents say they have already signed up for a Retirement Savings Plan (PER), and 22% plan to do so soon. Among executives, the respective rates are 42% and 25%.
 

However, only one-third of those surveyed (34%) believe they can live comfortably in retirement on their pension. Among those who are not yet retired, that figure is only 29%. This year, fewer than one in two retirees (47%) believe their pension allows them to live comfortably, compared with 54% in 2023, a year marked by a surge in inflation.