Open a retirement savings plan for a minor child, double interest

Subscribing to a pension product in the name of a minor child turns out to be a surprising idea at first glance. However, when creating the retirement savings plan (PER), in 2019, the legislator clearly considered this scenario by authorizing its ownership for each member of the tax household, therefore for parents and their offspring.

This scenario allows the spawners to do a double hit. First, if the latter have saturated their limit of payments of their individual PER, opening a plan in the name of their minor offspring allows them to benefit from its tax advantage. For the record, the tax deduction for a person without resources amounts to 4,114 euros (ie 10% of the annual social security ceiling). “You can take out as many PERs as you have children and thus accumulate the ceilings”, says Céline Roux, heritage engineer at Fidroit.

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This placement offers a great flexibility of use because the parents can garnish it at will, without obligation to comply with a periodicity of payments. Over the years, this savings can make children. “To make a sum grow over a very long period, it will be preferable to open a PER for a young child”recommends Pierre-Emmanuel Sassonia, founding partner of Eres.

Personal contribution

Theoretically, this plan will follow all his life during the child, who can support it as he sees fit, until his retirement. Those who open a PER for their descendants are therefore making a decision that will have very long-term consequences. Parents should pay attention to the characteristics of the product subscribed to (costs, flexibility of management, quality of investments, etc.), even if a PER can be transferred as many times as desired from one establishment to another.

And if it is possible to recover the sums deposited on a PER in certain cases, during what are called “accidents of life” (death of the spouse or PACS partner, disability, end of rights to unemployment insurance, over-indebtedness, etc.), the minor who has become an adult and active can use this money to finance the purchase of his main residence. It is, in fact, one of the six cases of early exit from the PER authorized by law. This jackpot will then be welcome to serve as a personal contribution, the sesame to obtain a bank loan, especially when you access the property for the first time.

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With this subscription, parents often intend to financially help their offspring to become, one day, owner. However, access to these savings can be problematic. Thus, the release of funds is only possible for real estate intended to become the principal residence of the holder.

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