Preparing for retirement is an essential step in your financial life, and choosing a retirement insurance plan that is right for you can help you secure your future. There are many options available and it is important to understand the different types of products available, as well as the criteria to consider to make the best choice. In this article, we guide you through the steps to choose a retirement insurance plan that is right for you.
1. Understand the different types of retirement insurance
There are several types of retirement insurance, each with its own specific features. Here is an overview of the main options:
- Retirement Savings Plan (PER) : Introduced by the PACTE law in 2019, the PER is a savings product intended to replace old schemes such as the PERP, the PERCO, and the Madelin contract. It offers attractive tax advantages and allows you to build up savings over the long term.
- Madelin Contract : Intended for self-employed workers (TNS), this contract allows contributions to be deducted from taxable income, thus offering tax savings while building up a supplementary pension.
- Life Insurance : A flexible savings product that can be used to prepare for retirement. Funds invested in life insurance benefit from advantageous taxation after eight years of ownership.
- Equity Savings Plan (PEA) : Although it is mainly used to invest in shares, the PEA can also be a tool for preparing for retirement thanks to its advantageous tax status after five years of holding.
2. Evaluate your profile and your objectives
Before choosing retirement insurance, it is crucial to define your profile and your objectives. Ask yourself the following questions:
- Age : The earlier you start, the more comfortable savings you can build for retirement.
- Professional situation : Are you an employee, self-employed, or civil servant? Each status can benefit from specific products.
- Family situation : Do you have dependents? Do you want to pass on capital to your loved ones?
- Financial goals : What is the amount of annuity or capital that you wish to achieve at retirement?
- Risk appetite : Are you willing to invest in riskier products to potentially achieve a better return, or do you prefer secure investments?
3. Compare available options
Once you have defined your profile and your goals, compare the different options available on the market. Here are some criteria to take into account:
- Management fees : Compare management fees between different products, as they can vary considerably and impact your final return.
- Performance of investment vehicles : Examine the past performance of the investment vehicles offered (euro funds, account units) and their suitability for your risk profile.
- Flexibility : Check the flexibility of the product in terms of payments, early redemptions, and choice of investment vehicles.
- Tax Benefits : Consider the tax benefits offered by each product, including tax deductions and taxation of retirement benefits.
4. Consider additional warranties and options
Some retirement insurance policies offer additional guarantees and options that may be of interest depending on your profile:
- Floor guarantee : Ensures that your beneficiaries will receive at least the amount of the payments made, even in the event of a decline in the financial markets.
- Life Annuity Option : Allows you to convert your savings into a life annuity to benefit from a regular income for life.
- Reversion options : Offers to pay part of the annuity to your spouse in the event of death.
- Managed management options : Entrust the management of your savings to professionals who adjust investments according to your retirement horizon and your risk tolerance.
5. Use a retirement simulator
Using a retirement calculator can help you estimate how much pension you will receive in retirement based on your current contributions and your goals. These online tools take into account different parameters to give you a clear idea of the savings needed to reach your retirement goals.
6. Consult a financial advisor
Using a financial advisor can be extremely helpful in choosing the retirement insurance that best suits your profile. An advisor will be able to:
- Assess your financial situation : Analyze your income, expenses, and goals to offer you suitable solutions.
- Offer tailor-made products : Select retirement insurance products that match your profile and your needs.
- Monitor the evolution of your savings : Adapt your savings strategy according to the evolution of your personal and professional situation.
Conclusion
Choosing a retirement insurance plan that is suited to your profile is a crucial step in ensuring your long-term financial security. By understanding the different types of products available, assessing your goals and profile, comparing options, and consulting a financial advisor, you can make an informed choice and optimize your retirement savings. At KT Assur&Bank, we are here to support you in this process and offer you personalized solutions to prepare for your retirement with complete peace of mind. Do not hesitate to contact us for personalized advice and a quote tailored to your needs.