PER Reform 2026: What Changes for Your Retirement Savings in France
End of deductibility after age 70, 5-year carry-forward extension, higher social levies: the 2026 PER reform reshapes retirement strategies for high-net-worth individuals.
- PER contributions made after age 70 are no longer tax-deductible from income as of 1 January 2026.
- Unused deduction allowances can now be carried forward for 5 years instead of 3, creating wider optimization windows.
- Social levies rise from 17.2% to 18.6%, pushing the flat tax on gains to 31.4%.
- 2026 deduction ceilings range from €4,710 to €37,680 for employees, up to €88,911 for self-employed.
France’s Plan d’Epargne Retraite (PER) is undergoing its most significant transformation since its creation in 2019. The 2026 Finance Act introduces three major changes that reshape retirement savings strategies — particularly for high-income taxpayers. With the tax filing season open since April 9, understanding these changes and adjusting your wealth strategy accordingly is essential.
End of Tax Deductibility After Age 70: A Paradigm Shift
Since 1 January 2026, voluntary contributions made to a PER by savers over 70 are no longer deductible from taxable income. Previously, no age limit applied to this deduction, which had enabled particularly effective estate planning strategies for the wealthiest households. The legislature sought to end what it viewed as a misuse of the PER’s intended purpose: the stated objective is to refocus the scheme on retirement preparation rather than estate optimization.
These contributions are now treated as non-deducted payments. However, the tax treatment on withdrawal is nuanced: for lump sum withdrawal, only gains are taxed and the contributed capital is recovered income tax-free; for life annuity, taxation applies to only 30% of the annuity amount, compared to 100% for standard deducted contributions.
For savers approaching 70, the optimization window is gradually closing. It is now strategic to maximise deductible contributions before turning 70, mobilising all available allowances including carry-forward amounts from previous years. This is a time-sensitive decision that should be planned with a wealth management advisor.
“The deductibility window closes at 70. For significant estates, every year counts in building a tax-optimised retirement capital.”Benjamin Cohen — Riviera Wealth Management
Extended Carry-Forward Period: From 3 to 5 Years
This is the positive counterpart of the reform. Unused annual deduction allowances can now be carried forward over a period of five years instead of three. This measure aims to allow savers who could not contribute sufficiently in their early PER years to catch up.
Transitional rules to note: unused allowances from 2024 and 2025 remain subject to the old 3-year deadline (usable until 2027 and 2028 respectively), while only unused allowances from 2026 onwards benefit from the new 5-year period. In practical terms, a taxpayer with unused allowances across several years can now make an exceptional contribution in 2026 and deduct a substantial amount from taxable income.
2026 Deduction Ceilings: Key Figures
Deduction ceilings for 2026 vary significantly by taxpayer profile. Understanding your applicable ceiling is the first step to optimising your contribution strategy.
| Profile | Floor | Ceiling |
|---|---|---|
| Employee | €4,710 | €37,680 |
| Self-employed (TNS) | €4,710 | €88,911 |
| Married/civil partnership couple (both employees) | €9,420 | €75,360 |
| Flat tax on gains (capital withdrawal) | 31.4% (12.8% income tax + 18.6% social levies) | |
| Carry-forward of unused allowances | 5 years (from 2026) | |
Five Optimization Strategies for High-Net-Worth Individuals
The reform creates both constraints and opportunities. The following five strategies address the most common situations for high-income, high-net-worth households.
Maximise Before Age 70
For savers approaching 70, schedule regular or one-off contributions utilising all available allowances including carried-forward ones. The deductibility window closes permanently at age 70 — this is an irreversible threshold.
Leverage the 5-Year Carry-Forward
Taxpayers who have not contributed the maximum in recent years hold a potentially significant stock of allowances. An exceptional contribution in 2026, combined with a spouse’s carried-forward allowances, can generate substantial tax savings at 41% or 45% brackets.
Weigh Entry Deduction vs. Exit Tax
With PFU rising to 31.4%, the trade-off between deductible and non-deductible contributions deserves case-by-case recalculation. For savers at marginal rate 41% or 45%, deductible PER contributions remain highly advantageous despite the higher exit levy.
Coordinate PER with Life Insurance
The PER should not be considered in isolation. It combines with life insurance — particularly Luxembourg-based contracts for larger estates — and estate planning tools. The goal is to optimize the capitalization phase, exit taxation, and wealth transfer simultaneously.
Assess the CDHR Impact
The differential contribution on high incomes, renewed for 2026, imposes a minimum 20% tax rate on households above €250,000 / €500,000. Deductible PER contributions reduce taxable income and may therefore help fall below this threshold or mitigate its impact.
31 December 2026 Deadline
The last day to make a PER contribution deductible against 2026 income. We recommend not waiting until year-end: an early contribution benefits from additional months of compounding and avoids end-of-year uncertainties.
- The age-70 deductibility threshold is irreversible — contributing maximally before this age is now a top priority for high earners approaching 70.
- The 5-year carry-forward extension opens a significant catch-up opportunity for taxpayers who under-contributed in recent years.
- The PFU increase to 31.4% reduces but does not eliminate the advantage of deductible PER contributions at high marginal tax rates.
- PER and life insurance must be coordinated within a comprehensive wealth strategy — they are complementary, not competing.
- The 31 December 2026 deadline for deductible contributions should not be treated as a planning horizon — act early.
The information contained in this article is provided for informational purposes only and does not constitute personalised investment advice or a tax recommendation. Tax and regulatory information reflects the state of applicable law at the date of publication and is subject to change. Past performance is not indicative of future results. Any investment involves risks, including the risk of capital loss. Riviera Wealth Management is a registered Financial Investment Advisor (CIF), registered with ORIAS and a member of CNCGP.
