Life insurance, PER: You will be able to (eventually) compare all costs

Bruno Le Mer, Minister of Economy and Finance, has promised to be more transparent about the cost of retirement savings plans (PERs). A promise kept by Bercy’s tenant who announced the creation of a single table on PER and life insurance costs during a press briefing this Wednesday, February 2. A “simple, clear and easy-to-read” tool for dealing with unqualified observations: “The regular cost of PER is very high.” In addition, these deductions are very difficult to assess the savers who want to subscribe to this savings product, which was born from the Agreement Act of 2019. Therefore, as the Chairman of the Financial Sector Advisory Board (CCSF) indicates, Corinne Dromer in a report submitted to Bruno Le Maire in July 2020, the information on these costs was “very fragmentary” and ” It’s almost inaccessible. ” “This makes comparisons impossible unless you can afford a few days,” the minister said. The reason he decided to act. And to act swiftly, a single table must be online by the seller of the retirement savings plan or life insurance policy from June 1, 2022.

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All summarized annual fees

But what exactly does the new tool envisioned by Bercy include? It’s very simple, it details all the costs. And there are so many of the latter, as much as identifying you from the beginning. For the overwhelming majority of insurance PERs in the market, the table first emphasizes the minimum initial payment and the membership fees of the associations with which they are contracted.

It is then divided into two main parts, one showing the annual cost, first the management cost of the plan, that is, the cost applied to support (Euro Fund, Unit Link Fund, Euro Croissance, and managed). Management) is shown. ). In the context of free management, fund management costs (stocks, bonds, real estate, etc.) are also shown. In particular, the retroactive rate of fees is shown. This is defined by Bercy as “a share of the cost of repayment”. Distributor and Plan Manager Benefits in the Last Closed Fiscal Year. ” In the case of PER’s default management mode, management driven by the horizon where contracts are gradually secured as retirement approaches, the management fee for each profile (careful, balanced, dynamic) is the retroactive rate of the associated fee. Is specified with. The costs shown are equivalent to the allowance 20 years before retirement. If you add other annual fees (fixed or proportional) to this, you will be charged the total fee each year.

Exorbitant one-time cost

Fees charged on a case-by-case basis, that is, according to the operations performed on the plan, are displayed in the second part of the table. These “one-time” fees include payment fees. This can reach up to 5% per deposit of the most greedy insurers, averaging 2.73% according to platforms dedicated to retirement savings. According to Bruno Le Mer, it’s an “excessive and even convincing” amount. Other costs mentioned: Costs associated with changing management modes, such as moving from free management to managed management. Arbitration fees (0.5% to 1% according to the Minister), free business hours per year, and transfer fees to another PER (PER under 5 years old), pension delinquency (payment) fees, and finally redemption fees.

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More information about life insurance

This cost display is similar for bank PER or securities account PER, and unlike insurance PER, very few products in the market that do not include guaranteed capital support (Eurofund) (Crédit Agricole and Yomoni). Please note that only sold). Adjusted with life insurance model.

>> Also to read-Life insurance: 2021 rate of all contracts under a magnifying glass

Bercy

Similarly, the costs incurred on annual or occasional life insurance policies should be summarized in a similar table. Also, as with PER, this additional information is for potential subscribers to the contract, as annual contact must be provided to savers from 2023 to summarize the actual costs incurred in 2022. It’s not just about.