France’s Plan d’Epargne Retraite (PER) is undergoing its most significant transformation since its creation in 2019. The 2026 Finance Act, passed through the Article 49.3 procedure, introduces three major changes that reshape retirement savings strategies — particularly for high-income taxpayers. With the tax filing season now 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

This is arguably the most discussed measure of the reform. 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 clear: refocus the scheme on retirement preparation rather than estate optimisation.

What happens in practice for contributions made after 70?

These contributions are now treated as non-deducted payments. However, the tax treatment on withdrawal is nuanced:

• Lump sum withdrawal: only gains are taxed. The contributed capital is recovered income tax-free.
• Life annuity: taxation applies to only 30% of the annuity amount, compared to 100% for standard deducted contributions.

For taxpayers approaching this age, the optimisation window is gradually closing. It is now strategic to maximise deductible contributions before turning 70, mobilising all available allowances.

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, championed by the LR group in the Senate, 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)
• 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 their taxable income. For a married couple where both spouses are highly taxed, the combined allowances can represent tens of thousands of euros in deductions.

Higher social levies: an impact to anticipate

The 2026 Social Security Finance Act raised the CSG rate, resulting in social levies increasing from 17.2% to 18.6%. This 1.4 percentage point increase directly affects the net return on investments, including PER holdings.

Concrete consequences:

• The Flat Tax (PFU) rises from 30% to 31.4% on gains realised within the PER upon capital withdrawal
• For annuity exits, social levies apply to the taxable portion of the annuity at the new 18.6% rate
• This increase mechanically reduces the net return at the time of withdrawal, even though it does not alter taxation during the savings phase

Notably, the law now distinguishes two CSG rates on investment income: a standard rate of 10.6% and a reduced rate of 9.2% applicable to property income among others. PER gains fall under the standard rate.

2026 deduction ceilings: key figures

Deduction ceilings for contributions made in 2026 are as follows:

These amounts are increased by unused allowances from previous years (3 years for 2024-2025, 5 years from 2026 onwards). Your available allowance appears on your tax notice, under the « retirement savings allowance » section.

Optimisation strategies for high-net-worth individuals

Given these changes, several levers deserve immediate attention:

1. Maximise contributions between ages 60 and 69

For savers approaching 70, it is urgent to schedule regular or one-off contributions utilising all available allowances, including carried-forward ones. The deductibility window closes permanently at age 70.

2. Leverage the 5-year carry-forward extension

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 — particularly for households in the 41% or 45% brackets.

3. Weigh entry deduction against exit taxation

With the PFU rising to 31.4%, the trade-off between deductible and non-deductible contributions deserves case-by-case recalculation. For a saver with a marginal tax rate of 30%, the entry deduction advantage is now narrower. However, for those at 41% or 45%, deductible PER contributions remain highly advantageous.

4. Coordinate PER with life insurance

The PER should not be considered in isolation. Within a comprehensive wealth strategy, it combines with life insurance — particularly Luxembourg-based contracts for larger estates — and estate planning tools (gifts, bare ownership structures). The goal is to optimise the capitalisation phase, exit taxation, and wealth transfer simultaneously.

5. Assess the impact of the CDHR

The differential contribution on high incomes, renewed for 2026, imposes a minimum 20% tax rate on households whose reference taxable income exceeds 250,000 euros (single) or 500,000 euros (couple). Deductible PER contributions reduce taxable income and may therefore help fall below this threshold or mitigate its impact.

Calendar: key deadlines

• 9 April 2026: online tax filing opens on impots.gouv.fr
• 19 May: deadline for paper returns
• 21 May: online deadline for departments 01 to 19 and non-residents
• 28 May: online deadline for departments 20 to 54
• 31 December 2026: last day to make a PER contribution deductible against 2026 income

We recommend not waiting until year-end to schedule your contributions. An early contribution benefits from several additional months of compounding and avoids end-of-year uncertainties.

The information contained in this article is provided for informational purposes only and does not constitute personalised investment advice. Past performance is not indicative of future results.