The 3rd pillar – private pension plans
Pension plans: Besides the state AHV (1st pillar) and occupational pensions (2nd pillar) you can also save for your retirement by contributing to a private pension plan (3rd pillar).
There are two different private pension plans, the 3a pillar and 3b pillar:
- 3a pillar – restricted private pension plan for persons earning an income:
Contributions are tax-deductible up to a set amount. This is a restricted pension fund, so you cannot take your savings out any time you like
- 3b pillar – free / unrestricted pension plan for everyone:
There is no limit to the amount you can pay into this plan. The 3b pillar pension plan gives you fewer tax advantages than the 3a pillar restricted plan.
Flexible fund saving with risk cover
As government pension benefits shrink, private saving becomes all the more important. Your unit-linked life insurance combines higher potential returns, comprehensive risk cover and tax advantages. You are doubly protected because you receive insurance cover for yourself and your family as well as pension capital for the time following your retirement.
Savings insurance for children
Saving for your children's future, tailored to your needs
Would you like to make it easier for your children to get a good start in adult life? With unit-linked redemption insurance, you'll be building up starting capital for them. Selecting an individual savings profile will enable you to achieve your savings target. Whether financial help for higher education, purchase of a first home or a world trip, you'll be providing welcome support as they set out on their own.
- Saving under Pillar 3 with attractive tax advantages
- Protection for your loved ones, thanks to a guaranteed death benefit
- Choice of savings profile according to your personal needs
- Assumption of premiums by insurance in the event of your incapacity to work
There are many forms of investment. Some are safer, but generate lower returns. Others offer the chance of higher returns, but carry greater risks.
You need to strike the best possible balance between risk and returns for your needs.
Funds are investment tools which present various potential returns and risks, depending on their focus. Learn more about the advantages of funds and the golden rules for a successful investment strategy.
What is a fund?
A fund combines many small asset holdings into one large pool. Fund managers manage the fund assets according to a set strategy, which varies from fund to fund, by investing in various securities and asset classes, such as money market investments, bonds and shares. Thanks to this diversification, the invested assets are at a lower risk than, for example, direct investment in bonds or shares.
The advantages of funds ( Your benefits)
- Protected investments: Funds offer effective form of protection for investors and the fund assets are protected even if the investment company files for bankruptcy (so-called segregated assets).
- Transparency: The investors know where and how your money is invested. You can opt in or out at any time.
- Diversification: The fund assets are invested in various securities and asset classes (and in varying currencies where appropriate). This means that all your eggs aren't in one basket.
Individual purchase or fund plan?
A decisive factor in fund investment is how and over what period of time the money should be invested.
- One time purchase
- Fund plan: from CHF 100 per month
If you start with an individual purchase and a higher sum, we recommend you divide it into instalments. This will avoid the entry risk and reduce fluctuations.
If you opt for regular investments via a fund plan you will benefit from the cost averaging effect: When the rate is low you will automatically purchase more fund units; when the rate is higher you will purchase fewer fund units. Over a long period of time an average price emerges and you avoid the risk of fluctuations.
The golden rules for a successful investment strategy
- Determine your personal investor profile: What returns are you aiming for and how much of a risk do you want to take?
- The risk is lower for fund investments than it is for direct investment in bonds and shares.
- The higher the desired return, the higher the risk associated with the investment.
- The bigger the fluctuation in the rate, the longer the investment horizon should be.