Self-employed managers do not always think about financial preparation for their retirement, convinced that the sale of their company will provide for it. Of course, that could be the case. But not always. Better a plan B if the business is not growing as well as expected.
One possibility is to change the legal structure of the company : “Switching to SAS, for example, makes it possible to pay the president who will thus benefit from the general scheme and the Agirc-Arrco scheme.explains Marilyn Vilardebo, president of Origami & Co, a retirement consulting firm. The charges will certainly be heavier, but the pension rights will also be greater. For it to be worthwhile, however, you have to think about it many years before the cessation of activity. Some leaders also choose to buy back quarters and/or to combine employment and retirement, when the time comes. »
These adjustments can go hand in hand with the subscription of retirement savings products. The first of these is the retirement savings plan (PER) allowing significant tax reductions (see above) and made up – via funds – of stocks, bonds, money market products, but also real estate, via shares in SCIs or SCPIs, or shares in unlisted companies.
It should be noted that the funds capitalized on the PER, which can only be released (except in exceptional cases) at the time of retirement, can be subject to personalized management to adapt the asset allocation to its risk appetite, but also to the date of his retirement. With more risky assets (better remunerated) at the beginning of its life, the PER can gradually become desensitized as the time of cessation of activity approaches.
For managers, the PER has, since 2019, taken the place of the old Madelin contract which is no longer marketed. First advantage: this plan can be funded by self-employed workers as well as by employees, and can therefore be constantly endowed, even if the status transforms. Second advantage: the PER allows an exit in annuity or capital, whereas only the exit in annuity was possible with the Madelin.
Should the funds from an old Madelin contract be transferred to a new PER?
“Not necessarily, it depends on the case, because the Madelin contract can offer better guaranteesnuance Christophe Olivier, general manager of My Pension x PER. For example, the annuity calculated in relation to old mortality tables may be higher, taking into account the increase in life expectancy, which has modified the calculations on the new tables. Other guarantees may be more attractive in a Madelin, such as those related to the operation of the technical rate. It is therefore important to carry out a simulation to precisely study the interest or not of the transfer. » In any case, nothing prevents you from keeping your old Madelin and opening a PER, in parallel, to be able to benefit, in the long term, from a capital outflow.
The Luxembourg life insurance contract
Another product suitable for business leaders retiring: the Luxembourg life insurance contract which has several advantages, starting with its portability and flexibility. “If the entrepreneur moves abroad, we will adapt his contract from a legal, tax and regulatory point of view to his country of destination, says Julien Milinkiewicz, heritage engineer at Wealins. In the event of redemptions, such a contract is also tax neutral, since Luxembourg does not levy any withholding tax; the subscriber will only be taxed in his country of residence. Finally, it provides access to a class of assets that has been in use for a long time in Luxembourg: non-side (private equity). Some executives ask us to make up 70% of their contract using such products. » The risk appetite of business leaders being stronger than the average, they accept, for a hope of better added value, the lack of liquidity on the non-side.
The capitalization contract
It is a good tool, complementary to life insurance. A business manager can invest in it directly, but also via a family holding company with corporate tax which “encapsulates income”: you don’t pay tax until you leave. While a life insurance contract must be settled on the death of the holder (insured), the capitalization contract is part of the estate assets and can therefore be kept by the heirs. “This contract may, moreover, be the subject of a donation (impossible for life insurance) in the dismemberment of property, notes Ségolène Roques, Director of Heritage Engineering at the Curator. In this context, the original subscriber, usufructuary, receives the fruits in the form of withdrawals, particularly appreciated at the time of retirement. The beneficiaries of the donation are the bare owners. »
The dismemberment of property can also be used in another area popular with those preparing for their retirement: that of real estate investment companies (SCPI), made up of housing, offices, trade or warehouses. “The purchase of the bare ownership can be carried out by the entrepreneur and the usufruct by the companyexplains Marion Chapel-Massot, president of DeCarion Gestion Privée. This allows the latter to amortize the usufruct while collecting the income, the time of the dismemberment. At the time of retirement, the entrepreneur recovers full ownership to benefit from the regular income of the SCPI. »
The SCI to accommodate real estate
Heritage or rental real estate (see above) is also a very interesting way to build up retirement capital or additional income. The wealthiest taxpayers have an interest in integrating their real estate investments into a real estate company (SCI) because it makes it possible to position oneself fiscally for corporation tax at 15% and not for income tax, when the TMI is high. An already existing real estate heritage can be sold to the SCI in creation. If it takes out a loan, this will reduce taxation in the event of the transfer of assets since the shares are less taxed and the liabilities arising from the loan will be deducted from inheritance tax.
“Buying your professional building and placing it in a family SCI has the advantage of being able to keep the property and continue to draw rental income from it, in retirement, once the business has been sold”advises Marie-Hélène Deboislorey. “Be careful, however, not to include the main residencerecommends Mélanie Benayoun, heritage engineer at the Harvest group, because it could then no longer benefit from the reduction of 30% of its value in the calculation of the tax on real estate wealth (IFI), nor from the reduction of 20% on inheritance tax when it is transmission. »