PARIS, May 3 (Reuters) - France will offer savers broader income tax exemptions on money they set aside for retirement, French Finance Minister Bruno Le Maire said on Thursday.
The minister said the aim of the new tax relief would be to boost paltry levels of saving for retirement in a country with a state-backed, pay-as-you-go pension system, where those who work pay levies to fund the pensions of those who retire.
The reform, which the minister outlined on France 2 TV ahead of a news conference, would allow people to deduct from taxable income any money set aside for retirement, he said.
It would also permit such savers to take those savings out as a lump sum on retirement if they wanted and to liquidate the savings early in certain cases, primarily if they needed money to buy a home.
The most popular savings product the French use currently is life insurance contracts, which benefit from tax relief and can be used to set aside money in substantial quantities for later years. (Reporting By Brian Love Editing by Ingrid Melander and Gareth Jones)