(Credits: © Richard Villalon – stock.adobe.com)
Many companies allow their employees to take advantage of an employee savings plan. A financial advantage that allows more than one Frenchman to implement a real estate project.
Profit sharing, participation, employer contribution, or voluntary payment: There are many ways to fund an employee savings plan. By offering this possibility to their employees, companies offer them excellent investment support. The evidence is that more than half of employees who benefit from at least one employee savings plan use their employees’ savings to fund property purchases, according to a survey by Opinion Way for Espor, a financial technology company that democratizes and simplifies employee savings.
More than one in two French people use their employees’ savings to become a homeowner
In order to become an owner, it is not enough to provide a correct debt ratio and obtain bank financing. In the vast majority of cases, it is also necessary to bring in funds to pay the associated costs, or even a part of the price of the property. If it is possible to withdraw from Livret A or from life insurance, it is also possible to use all or part of its employee savings for employees who benefit from it. This is also the choice made by more than 1 in 2 people with lower employee savings according to the survey by Opinion Way for Espor. 56% of respondents who got their main residence immersed themselves in it.
In order to be able to use your employees’ savings as part of a real estate project, you must nonetheless ensure that certain conditions are met. In fact, the amounts deposited in the company’s savings plan are frozen for 5 years, except for some exceptional cases, including the purchase or construction of a major residence. A retirement savings plan (PER), the capital of which is normally blocked until retirement, can also be released early in the event that a primary residence is purchased, whether it is an individual, a group PER, or a mandatory PER corporation.
Also Read: Employee Savings: These 4 Valuable Information That Appears in the Annual Statement
Employee savings plans are appreciated by families…
For 76% of the French surveyed on behalf of Epsor, employee savings is an interesting feature. This type of reinforcement offers a great salary supplement at times, and young people between the ages of 25 and 34 are more fond of them since 35% consider it the main feature “within their pay package.” Unsurprisingly, those with the most money in an employee savings plan, over €10,000, see this device as a key feature, up to 49% of those surveyed. Thus, the possible adoption of the purchasing power bill should delight people already tempted by employee savings, since the term of profit-sharing agreements can be extended, from 3 to 5 years.
… but its advantages are still unknown
Unfortunately, the employee savings process remains obscure in the eyes of many employees. Thus, 43% requested “more clarification on the performance of information and communications in a clearer, more readable and more systematic way”. Ignorance of these devices makes the majority of holders of this type of investment wary of risking their money. Only 27% of people surveyed by the Opinion Way prefer dynamic investments, and 53% choose risk-free or conservative vehicles, whose reward is low, if not negative. Benjamin Pedrini, CEO of Epsor, which works to make employee savings simpler, more modern and more accessible to the general public, deplores this: “These benefits can form real pockets of savings for beneficiaries, but the appropriations are very asymmetric due to a lack of information on the part of companies and managers of employee savings plans.