Supplementing your income in retirement: why rely on the SCPI?

How to build additional income in retirement? Faced with the weaknesses of the pay-as-you-go retirement system, the question arises, particularly for higher incomes. Upon retirement, a private sector executive from the 1960 generation receives approximately half of their final net salary.

For the 2000 generation, it would be just over 40%2. To bridge this gap, real estate is often popular: 62% of French people consider it relevant to supplement their retirement1. But not everyone has the time or desire to manage tenants and work.

This is where SCPIs (Sociétés Civiles de Placement Immobilier) come into play. Why SCPI to supplement your retirement income? An SCPI brings together the savings of thousands of investors to purchase professional buildings (offices, businesses, warehouses, hotels, etc.).

The management company chooses the buildings, finds the tenants, collects the rents and monitors the work, in return for management fees. Each partner then receives their share of the potential rents, in proportion to the number of shares held. For those wishing to prepare for retirement, this operation has several advantages: 100% delegated management: in exchange for fees, the management company takes care of everything.

An accessible entry ticket: a few thousand euros are enough to get started. Immediate diversification: several buildings brought together in the same SCPI and, depending on its strategy, several sectors and countries represented. Potential income paid regularly: every month, in the case of SCPIs offered by the management company Iroko.

In 2025, its SCPI Iroko Zen posted an Annual Overall Performance (PGA) of 8.13% including a distribution rate of 7.14%3. Past performance is no guarantee of future performance. The SCPI nonetheless remains a real estate investment, with the risks that accompany it: the capital is not guaranteed, just like the resale of the shares, and the income depends on the proper payment of rent.

On the tax side, rents from French sources are taxed as property income, that is to say at the income tax scale, to which is added 17.2% social security contributions. Some SCPIs invest largely outside France, with different tax treatment. This is the case of Iroko Zen, an SCPI launched in 2020, around 70% of which is located in other Western European countries4.

Its foreign rents are generally imposed where the buildings are located and do not support French social security contributions. 3The Annual Overall Performance (AGP) corresponds to the sum of the distribution rate for year N and the variation in the subscription price between January 1 of year N and January 1 of year N+1. The distribution rate corresponds to the annual income (gross of tax) paid to the partners.

It is expressed as a percentage of the share price on January 1 of the year. In 2025, 0% of the revenues paid by Iroko Zen are non-recurring. Taxes paid abroad by SCPI Iroko Zen represent 15.41% of gross income paid in 2025.

Tax treatment depends on each person's individual situation and is subject to change. Holders investing via account units do not benefit directly from any tax credits, these falling to the insurer. The taxation of income received abroad depends on the applicable tax treaties and the individual situation of each partner.

The tax framework may change and is not guaranteed. How to choose an SCPI to prepare for retirement? To prepare for retirement, it is better to choose an SCPI based on its solidity than solely on its displayed return: what matters is its ability to pay regular potential income for many years.

Four selection criteria can be taken into account: this information can be found in the SCPI's regulatory documentation. CriterionWhat to look forWhy it is important for retirementReal estate strategyDistribution by sector and country, number and size of buildingsA diversified real estate portfolio limits the impact of a defaulting tenant or a declining market. Origin of income Financial occupancy rate, solidity of tenants, remaining duration of leasesLong leases and stable tenants support the regularity of potential income.

Fee modelAll fees: subscription, management, acquisition, work, exitThe subscription fee reduces the capital converted into real estate, and therefore the potential return. Collection dynamicsNet collection, volume of shares awaiting withdrawalAn SCPI that collects can seize purchasing opportunities and process withdrawals more easily, without guarantee. One indicator deserves particular attention: the financial occupancy rate.

It compares the rents actually charged to what the park would bring in if it were fully leased. The higher it is, the more it testifies to a heritage that finds a buyer. At Iroko Zen, it stood at 96.61% in the 3rd quarter of 20264.

Full ownership or bare ownership: which strategy depending on your retirement horizon? Most SCPIs offer different investment options, including full ownership and bare ownership. The choice of one or the other depends on your retirement horizon: A few years before maturity, full ownership allows you to receive potential income quickly, once the period of enjoyment has passed.

10 or 15 years from retirement, bare ownership allows you to prepare income without increasing your taxes during working life. Bare ownership is based on an exchange: the saver agrees not to receive rent during the chosen dismemberment period, often between 3 and 20 years. In exchange, he benefits from a discount on the price of the share: at SCPI Iroko for example, -36% for 10 years.

The longer the duration of the dismemberment, the greater the discount will be. Throughout the dismemberment period, as the saver does not receive rent, he does not pay tax. The idea is to make the duration of the dismemberment coincide with the retirement age: for example, at 55, choose to regain full ownership of the shares in 10 years.

When investing in bare ownership, savings are blocked for the entire duration of the dismemberment, even if the selected dismemberment period is greater than the SCPI's recommended investment period, namely 10 years. To measure the difference, let's take the same amount of €30,000, invested according to the two formulas: Full ownershipBare ownership over 10 yearsProfileClose to retirement or already retiredRetirement in 10 to 15 yearsPotential income for 10 years€137.50/month, or cumulative €15,950NoneValue of shares after 10 years (at constant share price)30 000 €46,875 in full ownership (36% discount on purchase)Potential income thereafter€137.50 / month€214.84 / monthUnguaranteed assumptions: distribution rate of 5.5%, constant share price, shares entering into enjoyment on the 1st day of the 4th month, discount of 36% for a 10-year dismemberment. How much could you earn in retirement?

Estimate your potential additional income with the SCPI. → Carry out a simulation The results are based on non-guaranteed performance hypotheses of the SCPI. They only illustrate the possible evolution of your investment: the value may vary upwards or downwards, and gains or losses may exceed the amounts displayed.

The share price can move up or down depending on developments in the real estate market and the value of the real estate portfolio. Anticipate your retirement rather than suffer a drop in income The question is no longer whether to build up additional income, but how, and from when. In this area, the SCPI ticks several boxes.

It offers regular potential income and diversified assets, with management entrusted to professionals, in return for fees. However, it is an investment which presents the risks inherent to real estate, and the choice of an SCPI must be made with regard to solidity criteria. Iroko advisors or your wealth management advisor can help you take stock of your situation and guide you towards a solution adapted to your savings objectives.

This is an advertising communication. Investing in SCPI is a long-term real estate investment (10 years recommended) presenting risks in particular of loss of capital and liquidity. Income and share redemptions are not guaranteed.

Past performance is no guarantee of future performance. The properties are acquired, managed and rented by the management company, in particular in return for management fees. Consult the Iroko Zen regulatory documentation (information note and DIC PRIIPS) before investingSources1Kantar study for Iroko carried out in November 2025 among 1,000 French people aged 30 and over2DREES, replacement rate projections on typical cases, June 2026 report3Iroko data as of 12/31/20254Iroko data based on the portfolio as of 09/30/2026, subject to change according to the investment strategy described in the regulatory documentationThe SCPI Iroko Zen, AMF SCPI visa N°20-17 dated 09/10/20 is managed by Iroko, SAS 883 362 113 R.

C. S. Paris - Portfolio management company, approved by the AMF under number GP-20000014 dated 06/08/20.

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