5 tips for successful retirement planning
In private pensions, combining a savings account with an investment fund can further enhance the potential returns of your retirement assets.
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Savings account:
Let's assume you had paid CHF 100 into a standard savings account every month for the past 20 years. This would have earned you interest of around CHF 3,700 (average interest rate of 1.8%*). - Saving with a fund:
Had you opted for a fund-based savings solution, then you would have earned interest of around CHF 12,900 (average return of 4.0%**).
- What does this mean for your retirement pension?
It means that after 20 years, you would have earned CHF 8,800 more in returns with a combined savings/investment plan.
* Average interest rate for bank accounts over the last 10 years: 1.8%. Applying the average interest rate of Baloise Bank SoBa over the last 10 years (as of 31.03.2017).
** Average performance since 31.03.1997 BVG-Mix 40 Plus: 4.0% (as of 30.09.2017)
Regardless of whether you intend to accumulate retirement capital via a conventional third-pillar savings account or in combination with an investment fund, a judiciously planned pension will enable you to enjoy your retirement to the full. Here are five tips for a successful pension:
You can save tax by paying into a Pillar 3a account. You can pay up to CHF 6,768 a year into the account. This maximum amount is fully deductible from your taxable income.
The pension certificate provides you with information about your occupational pension cover each year and whenever any changes are made. In the pension certificate, you will find detailed information about your insured benefits payable upon retirement and in the event of death or disability. It also includes details of the contributions that you and your employer make to the pension fund.
The money paid out to you on your retirement is taxable. Since you are not permitted to make a partial withdrawal from a single account and the tax rate increases with the size of the deposit, it makes sense to open several pension accounts and stagger your withdrawals. Spreading your funds in this way means you can close the various accounts over several years and thus avoid progressive taxation – in full compliance with the law.
In Baloise, you are choosing an experienced partner that knows the Swiss pensions market inside out. For more than 150 years, we have been a reliable partner in all matters relating to pensions, offering a range of attractive pension solutions.
Baloise offers a range of pension solutions that regularly achieve top rankings in comparisons with competitor products – notably, our BVG-Mix vehicles, which you can use in the context of a Pillar 3 pension solution. You can compare our product solutions with those of our competitors at www.kgast.ch.