Best Safe Investments For Retirees - Safe Investments For Retirees

Safe Investments For Retirees: Life insurance, PERP, rental property, or Euro-growth contracts, there is no shortage of investment solutions. Each solution allows you to save for retirement, but some are more advantageous than others, especially depending on the time. To best prepare for retirement, it is therefore important to understand all the specificities of the different investments.

Life Insurance

The Life Insurance contract is a Long-Term (ALD) investment solution that it is interesting to take out from an early age. First of all, this contract allows greater savings flexibility. It is possible to stop the payments on a Life Insurance contract and to recover its funds in the event of a hard blow. In addition, past 8 years of seniority, partial redemptions are exempt from tax, provided you do not withdraw more than €4,600 in earnings per year (€9,200 for a couple). Finally, the contracts are multi-media. It is possible to secure your savings on investments in euros or choose to take risks by choosing units of account that can bring in much more.

Euro-growth funds

The new Life Insurance euro-growth funds are joining unit-linked funds. More profitable than investments in euros, these funds do not guarantee the capital before eight years of seniority after the first payment. It is therefore a long-term investment that must be chosen early.

It works on the free manipulation of capital by the insurer according to the choices of the saver. Over a long period, the insurer is, therefore, able to make the capital grow by investing it in a particular action. The higher the risk rate granted, the greater the gains.

Rental real estate

Investments in rental real estate consist of the purchase of a dwelling with a view to renting it out. This solution can help you better prepare for your retirement. Indeed, real estate repayments are made over the period when the buyer is active, knowing that the rents already partly cover the repayment dates, he can take full advantage of the annuity once retired. In addition, the tax environment of rental real estate is very advantageous and allows you to build up a heritage at a lower cost.

Company Savings Plan

Company Savings Plans (PEE) allows employees of certain companies to grow their savings at attractive rates. When opening these plans, the company can even add a small bonus. The accumulated capital is available after 5 years of seniority. To limit excesses, the law prevents each employee from investing more than 25% of his income.

PERP

Note:  According to the latest figures from INSEE, 1,078,000 retirees would be considered poor, ie 7.9% of them. Therefore, it seems more than important to find solutions to supplement your income once you retire.

The Popular Retirement Savings Plan (PERP) is an individual, optional insurance contract. It allows the subscriber to make payments on his PERP in order to be able to convert his accumulated capital into annuities paid until the death of the insured. The amounts paid into a PERP, under certain conditions, are deductible from taxable income. There is no ceiling set for the deposit and it is possible to build up a personalized retirement supplement. Like most investments, this one is long-term and should therefore be taken out as soon as possible.

Faced with a less and less generous collective pension system, acting on an individual scale is no longer just a matter of comfort; it is often a necessity. Depending on your professional situation, you will indeed have to assume a loss of income that can range from 30% to 70%. How can you best anticipate your retirement? PER, life insurance, real estate... Focus on the best investments to prepare for your retirement.