The main private, personal pension option in France is the Plan d’Epargne Retraite Populaire (PERP).

The payments made into the PERP are locked until retirement and invested for growth based on the amount of risk the plan owner wants to take and the amount of growth targeted.
Upon retirement, the total amount invested is used to buy an annuity (regular income payment) which, according to the terms of the contract, can be fully passed on to the surviving spouse on death. There are different annuity options such as payment until the death of the plan owner or for a set amount of years.

A major advantage of investing in a PERP is the tax credit. The plan owner can receive a tax credit (deduction straight off your annual tax bill) for PERP funds invested of up to 10% of their annual revenues, net of social charges and professional fees. This is limited to 8 times the annual amount of the sécurité sociale ceiling, so a maximum deduction of €30,038 for 2014. The ceiling amount changes each year.

The circumstances under which money can be taken out of the PERP before retirement are quite limited. For example, if the plan owner becomes seriously ill or disabled and cannot work if their business activity is ceased due to a liquidation judgment. In some cases it is possible to recover some or all of the invested PERP funds in the case of divorce, or the death or incapacity of a spouse.

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France Home Finance is a fully licensed and insured insurance broker offering French life insurance, French home insurance and tax sheltered savings plans (assurance vie, PERP.)