PER yield in 2024: what is the rate?

The Retirement Savings Plan (PER) helps you prepare for your retirement. With many offers available, it is legitimate to wonder which PER yield for 2024. In this article, Mes Allocs guides you to optimize your savings.

The PER yield indicates the gains you generate thanks to your savings invested in the PER. The return is expressed as a percentage, it reflects the profit made on your capital over a given period. It is important to differentiate between gross return, which does not take into account fees, and net return, which subtracts management fees. Finally, there is net-to-net yield, which takes into account taxes at the end.

Factors that influence PER performance

Several elements impact the PER return. First of all, the choice of investment vehicles is important. Then, fees associated with the contract, such as management or entry fees, also decrease the net return. Finally, taxation at the time of withdrawal, which varies depending on the method of exiting savings and the tax bracket, is a determining factor for the final return.

Calculation of yield according to the different types of PER

The yield of a PER may vary depending on the type of PER. Whether you choose a FOR individualsand corporate collective PER or a Mandatory PERthe fundamental principles remain the same. It is important to take into account payouts, performance of investment vehicles, brothers and taxation.

What are the different PER investment vehicles and their impact on performance?

Euro funds

THE fund in euros are safe investments that protect the parents placed there. Even though the yield is often low, it remains constant. These funds invest primarily in bonds, making them sensitive to changes in interest rates. In 2024, with rising rates, euro funds could offer a slightly higher return than in previous years.

Units of account

THE units of account allow you to diversify your savings by investing in different types of assets such as stocks, real estate or bonds. Even if the return on units of account may be higher than that of euro funds, there is a risk of capital loss. It is important to choose the units of account according to your level of risk tolerance and the duration of your investment.

What is the average PER yield in 2024?

It is difficult to give a precise figure for the average PER return because it depends on your investor profile. For “cautious” profiles, the estimates are 2%. For people with a more dynamic profile, the estimated return is 7.5%. Market performance, interest rates and investment choices within the framework of managed management will also have an impact on the final return.

Choose a PER with low fees

Fees directly affect the PER return. It is therefore important to choose a contract with fees that are not too high.

Diversify your investments

Spreading your savings across different supports (euro funds, units of account) gives you the opportunity to diversify your investments and reduces the risk of loss, therefore optimizing the return on your PER.

PER management method for better performance

The type of management you choose has an impact on the PER return. If you choose managed management, a professional takes care of your savings according to your risk profile. On the other hand, free management allows you to have more control, but this requires good knowledge of the financial markets.

What are the mistakes to avoid to maximize your PER return?

Neglecting contract costs

Don't just look at the P/E yields displayed. It is important to analyze the costs linked to the contract, such as management, entry and arbitrage costs, because they can reduce the performance of your savings.

Not diversifying your investments sufficiently

If you don't diversify your savings investments, you risk losing more money.

Choosing the wrong risk profile

A poorly adjusted risk profile can push you to take risks or, on the contrary, to be too cautious. It is important to clearly define your risk profile with the help of an advisor in order to choose the investments that correspond to your situation and your objectives.

Not adapting your investment strategy

Your investment strategy should evolve based on the time you have left before retirement. The closer you get to retirement, the more important it is to secure your savings to preserve them.

PER and taxation: what impact on performance?

Tax deduction of payments: advantages and disadvantages

One of the main advantages of the PER is the possibility of deducting the amounts you pay into it from your taxable income. This helps reduce your taxes, but you will still be taxed when withdrawing the funds. It is important to carefully consider the tax deduction based on your Marginal Tax Band (TMI) and the duration of your investment.

Impact of marginal tax bracket on net return

Your marginal tax rate has an influence on the net return on your PER. If it is high, this means that you will have a greater tax advantage by deducting on payment. That said, it also means you'll pay more taxes when you withdraw your money.

Taxation on exit: capital exit or annuity exit?

The way you are taxed when you exit your PER directly influences the return you obtain. This depends on whether you have chosen to withdraw the money as a capital or an annuity.

If you have chosen a capital exitthe portion of the payments that you deducted will be taxed according to your tax bracket. The winnings will be taxed at 30% (12.8% tax and 17.2% social security contributions).

If you have chosen a annuity exitit will be taxed as a retirement pension, with a reduction of 10% before applying the progressive scale, and 17.2% of hot deductions on the payments part.

The choice of the best PER depends on your personal situation, your marginal tax rate in retirement and your income needs.

To conclude, the PER allows you to build up savings for retirement, but its return depends on several factors: investment vehicles, fees, management methods and taxation. To optimize your PER, it is important to diversify your investments and adapt your strategy according to your risk profile and your investment horizon.

Need help with your PER procedures? Our experts Mes Allocs accompany you!