Preparing for retirement is an essential step in your financial life, and choosing the right retirement insurance for your needs can help secure your future. There are many options available, and it's 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 choosing the right retirement insurance for your needs.
1. Understand the different types of retirement insurance
There are several types of retirement insurance, each with its own specific features. Here's 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 older schemes such as the PERP, the PERCO, and the Madelin contract . It offers attractive tax benefits 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 providing 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 favorable tax treatment after eight years of holding.
- 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's crucial to define your profile and goals. Ask yourself the following questions:
- Age : The earlier you start, the more comfortable savings you can build for retirement.
- Professional status : Are you an employee, self-employed, or a 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 you want 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've defined your profile and goals, compare the different options available on the market. Here are some criteria to consider:
- 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 product's flexibility 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 the 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 investment options : Entrust the management of your savings to professionals who adjust investments based on your retirement horizon and risk tolerance.
5. Use a retirement simulator
Using a retirement calculator can help you estimate the amount of pension you'll receive in retirement based on your current contributions and goals. These online tools take into account various parameters to give you a clear idea of how much savings you'll need to achieve your retirement goals.
6. Consult a financial advisor
Consulting a financial advisor can be extremely helpful in choosing the retirement insurance best suited to 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 needs.
- Monitor the evolution of your savings : Adapt your savings strategy according to changes in your personal and professional situation.
Conclusion
Choosing a retirement insurance plan that's right for you 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 maximize your retirement savings.
At KT Assur&Bank, we're here to support you through this process and offer personalized solutions to help you prepare for your retirement with complete peace of mind. Don't hesitate to contact us for personalized advice and a quote tailored to your needs.