PERP and MADELIN
PERP, the Plan d’ Epargne Retraite Populaire, is a collective retirement savings plan based on individual participations, which makes it comparable to a Life Insurance Capitalisation, also on a tax level.
There is, however, a difference. The PERP contract allows you to receive a payment of 20 % of the capital involved at the first day of your retirement.
Fiscal advantage: the sums invested in the PERP are deductable from the income tax within a limit of 10 % of the professional revenues.
Retirement contracts under the Madelin law ( for self employed persons )
The goal of a retirement contract under the Madelin law is to constitute an additional income during your retirement that will be paid in monthly terms, thus additional to the legal retirement pension payments you will receive. The contributions you pay to constitute the capital needed are tax deductable, so the savings will be paid partially by saving taxes.
There exist three types of contracts under the Madelin law:
– single support
– multiple support
– in saving points. These can later be exchanged for euros.