For the majority of French people, retirement is synonymous with a new life devoted to relaxation and leisure. However, this prospect of hope is marred by great anxiety. Indeed, they fear that they will not have enough income when they retire. This is shown in particular by the 15th edition of the “Les français, l’épargne et la retraite” barometer, conducted by Valérie Plagnol, President of the Cercle des Epargnants, and Brice Teinturier, Ipsos’ Chief Operating Officer for France.
It is therefore interesting to analyse the various figures gathered by the survey to get an overall view of how the French perceive retirement. However, if the French are worried about their future retirement, they can seek the help of a brokerage firm specialising in savings and retirement like the Rodin Group.
How do the French perceive their retirement?
For a large majority of French people, retirement is perceived rather positively. In fact, for 65% of them, it is seen as an opportunity to start a new life. This new life should also allow retirees to devote themselves to their leisure activities (60%).
Yet the 2017 barometer shows that 6 out of 10 French people (60%) say they are worried about their own retirement. The main concern is the lack of money for 79% of them. Indeed, only 4 out of 10 people think they will have enough financial resources for retirement. Despite these concerns, surprisingly few French people are seriously preparing for retirement.
As a result, only 21% of working people regularly save for retirement, a figure that has dropped by 5 points in one year, and only a quarter have discussed it with a professional such as the Rodin Group. Moreover, in 2017, 23% of those surveyed plan to save more (down 8 points compared to 2016), while 22% intend to take money from their savings to support their consumption. This percentage is up 7 points to 30% for retirees.
What the French think of the retirement system
The relationship of the French with the pension system is also quite worrying. Indeed, they are even more worried about the pension system as a whole (87%) than about their own retirement. In particular, it is the pension system that is at the top of the French people’s concerns about financing, ahead of health insurance and other aids such as housing.
Several solutions to redress the pension system are being considered but are not welcomed by the French, such as the proposal to increase the amount of contributions or to subscribe to a pension fund. Finally, only 26% are ready to postpone the retirement age and 7% to reduce the amount of pensions.
Finally, the majority of French respondents (65%) believe that the subject of retirement was not sufficiently addressed in the presidential campaign. During the last elections, voters were not convinced in the candidates’ ability to sustain the system.
Preparing for retirement with the Rodin Group
Given that the issue of retirement is of great concern to the French and that relatively few French people are saving to deal with it, it may be interesting to direct them to a brokerage firm such as Groupe Rodin.
The consulting firm is able to provide all the information that the French request on preparing for retirement. Totally independent, its vocation is to offer its clients quality products adapted to their needs in the fields of provident, insurance, savings and retirement. This preparation is based on two State measures: the MADELIN law and the PERP (the People’s Retirement Savings Plan).
The MADELIN law
Implemented on 11 February 1994, its purpose is to enable non-agricultural self-employed workers (TNSNA) to benefit from supplementary retirement pensions and supplementary personal welfare guarantees consisting of contributions deductible from taxable income. Of course, it is not compulsory.
The law is very simple to use since it is sufficient to make payments every month, which will be paid out as an annuity once the retirement age is reached. Its other advantage is that it offers a tax reduction deductible up to 10% of earned income.
Offering a tax advantage to TNS, it also allows you to contribute to one or more supplementary retirement contracts, an income replacement insurance in case of work stoppage, a supplementary health contract, a “loss of employment suffered” insurance and a death benefit contract.
The People’s Retirement Savings Plan
In theory, the PERP is open to everyone, but in practice it is particularly suitable for people with high taxes, people willing to lock in their capital over a long period of time and those with cash for retirement.
If the individual falls into one of these categories, the Plan d’Epargne Retraite Populaire (People’s Retirement Savings Plan) can be very interesting in view of its various advantages. It offers an IFI and ISF exemption, a 100% deduction of contributions from taxable income, it is not necessary to make regular payments as the MADELIN law and it offers the possibility to protect one’s spouse and relatives.
After analysing the survey figures, it is clear that the French are worried about their retirement. For and paradoxically, they are not prepared for it. It is necessary to remedy this situation by informing individuals about the possibility of calling on professionals such as the Rodin Group to take charge of preparing for their retirement. Thanks to the two measures proposed by the brokerage firm, individuals can increase their income at the time of retirement and see the future in a better light. This will make it easier for them to take advantage of what they see as a positive and leisurely time in life.
