The Individual Retirement Savings Plan (PERin) is a long-term savings vehicle designed to help individuals accumulate capital during their working years. It offers tax benefits and is intended to provide a supplementary income source, paid out as a lump sum or an annuity, upon retirement. Like a life insurance contract, the plan can be invested in unit-linked assets. This investment structure offers tax optimisation benefits.
The eligibility for income tax deductions is contingent upon the holder’s professional status, specifically whether they are salaried or self-employed. If the client is subject to a high level of taxation, the PERin is an attractive solution.
Don’t overlook the importance of opening a life insurance contract to establish a start date, which offers attractive tax benefits after eight years. Life insurance also offers the opportunity to establish an additional source of income and to transfer financial assets to beneficiaries under advantageous tax conditions.
