Life insurance and PER: Soon, the fees charged will be more transparent

Immediate increase in transparency of PER charges (credit: Fotolia)

Immediate increase in transparency of PER charges (credit: Fotolia)

The Minister of Economy and Finance has announced that banking and insurance professionals have agreed to publish all costs deducted from PER in a standardized table. Explanation.

A standardized table showing all costs deducted from PER and life insurance

A few months ago, the CCSF president published a report on the fees charged on PER (Retirement Savings Plan). On this occasion, Minister of Economy and Finance Bruno Le Mer declared, “Today, market players are thinking of taking excessive fees and fees.” He also thought that cost diversity, “very fragmented” and “almost inaccessible” information “makes comparisons impossible”. He then promised to increase the cost transparency of PERs to allow savers to compete and reduce costs in the long run.

In a meeting with the press on February 2, the Minister announced that banking and insurance experts agreed to list all costs deducted from PER in a standardized table with the support of Bercy. Did. “If you really want to reduce costs, you need competition between different products, different producers, and for this competition to work, you have to be completely transparent,” the Minister of Economy explained. ..

This table must be effective June 1, 2022, and not only PER distributors, but also life insurance distributors must be published online. In particular, you need to display the annual membership fee and one-time fee for the contract.

Annual fee

Contract management fee

Contract management fees are deducted annually by the contract insurer from savings invested in funds on a euro or account basis. They vary by type of support and insurance company and are typically between 0.40% and 1.20% per year.

If the saver chooses management profiled with the default PER management option, Horizon, you may be charged an additional management fee. These additional costs should also be shown in the table.

Fund management fees

Management fees are also deducted annually from each medium by the management company on an account-by-account basis. They can sometimes reach 3%.

One-time cost

Payment fee

Payment fees will be deducted from each PER payment. Depending on the contract, it will vary from 0% to 5% of the payment amount.

Arbitration fee

If you switch from one media to another within the PER, you will be charged an arbitration fee. They can represent up to 1% of the arbitrated amount.

Late fees

Upon retirement, PER allows you to have your savings in the form of a life pension. Managing annuities involves the insurance company’s costs charged to the saver in the form of late fees. These correspond to the percentages deducted from each payment of life annuity (also known as delinquency). They can vary from 0% to 3% of each delinquency.

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