OPEF 2026 Report: The illusion of risk-free investments

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The belief that one’s capital is safe in guaranteed investments is a widespread illusion. In reality, the vast majority of savers are experiencing a silent erosion of their purchasing power, masked by misleading nominal returns.

The findings of the latest report from the Observatory of Financial Savings Products (OPEF) are unequivocal: while French households are accumulating record amounts in their financial portfolios (more than 2,100 billion euros held primarily in life insurance and PERs), the absolute pursuit of financial security is producing the opposite effect of what is intended.

The Monetary Illusion: Stable Capital That Loses Value

The main pitfall lies in the confusion between nominal return (the rate shown on the account statement) and real return (what remains after deducting inflation, fees, and taxes). An investment that shows a positive return of 2% gives the impression that it is protecting one’s wealth. However, as soon as inflation equals or exceeds that level—and once social security contributions or taxes are deducted—the real value of the capital decreases:

• Euro-denominated funds: With an average return capped at 2.60%, the net return after taxes is barely enough to maintain purchasing power in the face of the cost of living.
• Money market funds and very conservative investment vehicles: With negative average returns (-0.87%), these vehicles suffer a double blow: a direct nominal loss combined with the decline in the value of money.

In short: Not losing money on paper does not mean maintaining one’s standard of living. Inaction or overly conservative asset allocation results in a net loss in the medium and long term.

The Destructive Impact of Layered Fees

An analysis of OPEF data highlights another key factor: the cumulative burden of recurring fees. Gross market performance is gradually eroded by the accumulation of layers of fees:

• Contract management fees: These range from 0.67% for euro-denominated funds to 1.08% for actively managed or discretionary accounts.
• Investment vehicle-specific fees: UCITS, real estate funds, or products integrated into the contract add their own internal management fees.
• Contribution and transfer fees: Although declining, these fees represent an immediate deduction from the amounts invested (approximately 0.54% on average for unit-linked funds).

Over a period of 10 to 15 years, the difference in value between a fee-optimized portfolio and a policy burdened with high management fees can amount to tens of thousands of euros.

How can we break out of this financial paralysis?

To stem this ongoing loss of value, the strategy is not to take reckless risks, but to methodically structure your asset allocation:

• Accept controlled volatility: Allocating a measured portion to unit-linked investments (stocks, structured products, private equity) is the only proven way to generate returns that exceed inflation over the long term.
• Comprehensive fee audit: Accurately assess the internal fees of your current policies to eliminate duplicate charges.
• Tax optimization: Take advantage of tax deductions and tax-free capital appreciation offered by life insurance, the PEA, or the PER.