Retirement savings: annuity or capital?

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The annuity was the rule of most old retirement savings plans. (© Fotolia)

With the new retirement savings plan (PER), taking out an annuity is no longer compulsory.

For a very long time, retirement savings were regulated in such a way that the beneficiary, the one who had saved, most often under pressure, could only receive an annuity.

The reason for this state of affairs was it the wish of the welfare state that its “obligated” could not spend all their capital and find themselves without resources, in the hooks of this same state, then, everything suggests.

The PACTE law has significantly changed things. On the one hand by allowing an easier exit in capital and, on the other hand, by authorizing the transfer of retirement savings plans with compulsory annuity exit, such as the Madelin contract, to other plans accepting, for their part, an exit in capital, as is the case of the new PERin or individual PER.

Whatever the reason for this change in the legislature, we can only note that France is aligned with most of the major European countries, that the saver is regaining a little of his free will, and we can only s ‘to congratulate.

Why take out an annuity?

Most of the retirement savings contracts set up in application of a will of the State provide for a forced or possible retirement. Either because it wants to direct the savings of the French towards the financing of such or such privileged investment categories, or because it

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