Saving regularly and early, even small amounts, allows you to gradually build up capital for short and medium-term projects (in the event of unforeseen events or for a particular purchase), or to build up additional income in retirement. .
If your company matches your voluntary payments , this is a way to maximize the contribution offered for the current year.
It's an excellent idea to save without thinking too much about it and to let your savings "work" , the returns often being higher than those you can have on regulated savings accounts (Livret A, PEL, LDD, etc.), thanks in particular to the phenomenon that we could call “ returns on returns on returns” or “compound interest” . In fact, an investment of €1,000 yielding 5% per year will not have increased by €1,500 after 30 years, but by €3,322 . This is explained by the fact that the first interest paid also earns 5% and so on.
This allows you to smooth performance and reduce risk . You invest at different prices (the net asset value of a fund changes over time) which tends to lower the average price of your investments and thus reduces losses in the event of high volatility on the financial markets.

Let's take the example of Damien, he has set up a monthly payment of €50 every month on his Mandatory PER, with an average annual return of 5%* up to age 60.

The table shows the difference in income he can expect if he starts at 20 vs. 30.

Damien will have earned €33,357 more starting at age 20 with only €6,000 more saved (€50/month/10 years). We are only talking about voluntary payments here; if Damien also invests his premiums every year, the total amount saved will be greater.

How to save on your Mandatory PER?