Changes to the PER French retirement plan.
Under the new French budget 2026, the French retirement savings regime (PER) would be adjusted to refocus it on long-term retirement planning rather than late-stage tax optimization. Contributions made to a PER after age 70 would no longer be deductible from taxable income, a measure supported by the government and aimed at preventing the use of the PER as a short-term tax shelter late in life, while still allowing non-deductible contributions. At the same time, the reform introduces a more favorable adjustment by extending from three to five years the period during which taxpayers may use previously unused PER deduction ceilings, providing greater flexibility for individuals with irregular or volatile income. Taken together, these changes encourage earlier and more structured retirement saving, while limiting opportunistic tax strategies at or after retirement age.
The issue of three year to five years is important as many Americans fail to take advantage of this plan. By being able to go back five years, it significantly increases the amount of tax deductible savings that is available.