What reform for savings in France?

Since long-term interest rates probably will be low for a long time and then rise in France, euro life insurance funds, invested mainly in bonds, could not possibly be the main French savings vehicle. The reason is that bond portfolios probably will have negative returns for a long time to come. The newly created Retirement Savings Plan (PER) is not easily substitutable for euro funds, as it targets much younger savers. Life insurance funds should therefore be diversified into riskier assets with higher returns (equities, private equity, real estate, leveraged loans, etc.). The problem is that the variability of the returns on these assets would make the return on life insurance variable, and it would therefore be impossible to give savers a permanent capital guarantee, especially in an environment of low interest rates. French savers would therefore have to accept a capital guarantee only in the medium term or a guarantee to limit the maximum capital loss.