Saving has always been presented as a measure to secure one’s future and to face the unexpected with more serenity. Opting for a savings solution will also help you achieve your goals that require financing. Although there are several savings vehicles for this, it must be said that they are not suitable for all ages. Discover here the different options that you can benefit from depending on your age.
Savings solutions for minors aged 0 to 17
what savings at what age ? A question that is easy to answer if you have a good knowledge of the subject. Between the ages of 0 and 17, children generally have no source of income. However, parents can decide to open a savings account in their name. Apart from booklet A, there are baby booklets or birth booklets that they can access as soon as they are born.
On the other hand, those who are between 12 and 17 years old can already obtain the Youth booklet which authorizes minimum payments of 10 euros. Capped at 1600 euros, it offers an interest rate of around 0.75%, which varies according to the banks. If you are looking for advice for smart financial investments, visit the site The capital.
Savings solutions for young people aged 18 to 25
Young people in this age group are mostly students. Although they do not have a stable income, they can learn to save for small projects. They may be able to opt for the Livret A which is a fairly flexible savings solution capped at 22,900 euros. Indeed, it does not require a compulsory payment and does not impose any age limit. Its annual rate of return is 0.5%.
Savings solutions for young adults aged 25 to 35
When young adults aged 25 enter working life, they have the choice between booklet A, the Housing Savings Plan PEL and the Action Savings Plan. The PEA is used for stock market investments.
Capital gains and dividends are exempt from income tax after 5 years. When you withdraw your money before this date, heavy penalties apply. The young PEA is capped at 20,000 euros while the classic PEA is capped at 150,000 euros.
As for the PEL, it requires an initial deposit of 225 euros and an annual payment of 540 euros. With an interest rate of 1%, it is capped at 61,200 euros with a lifespan limited to 10 years. Account closure must be done after 4 years to avoid penalties. The owner will be able to benefit after this period from a housing allowance of 1525 euros.
Savings solutions for 35 to 45 year olds
At 35, you have surely already acquired a professional maturity. This is the time to save for the future of children or to prepare for your retirement. For this, you can use life insurance.
It is a popular savings option because of the multiple benefits it offers. A single person can have several life insurances. In addition to this, the account has no maximum deposit limit or closing time. This is a lifetime account.
Savings solutions for 45 to 60 year olds
Aspiring retirees can start contributing from the age of 40. They will therefore be able to opt for the Retirement Savings Plan. The funds will be kept until you retire. However, you will be able to withdraw them in advance only to carry out real estate projects.