Pension planning

Do I have sufficient financial cover?

When you are in the middle of your life, you rarely think that anything bad could happen. But an accident or illness could result in a person becoming disabled or even dying. In such cases, the money provided by social insurance schemes is often not enough to maintain your usual standard of living. That is why it is worth reviewing your insurance situation – especially if you are getting married, are expecting a child, buying a home, working part time or starting your own company.

How do I get the most out of my pillar 3a?

Nowadays, banks pay very little interest on 3a accounts. However, a 3a solution that invests in securities can generate significantly higher returns. Many banks offer these types of solutions. These are often actively managed funds which charge high fees of 1.5% or more. Then depending on the provider, there are also transaction costs, custody fees and issuing commission. You can get more out of your third pillar with a passive solution that invests in indexed funds, such as ETFs.

Vested benefits: How do I improve my returns?

Unlike a pension fund, a vested benefits foundation does not have to pay a minimum interest rate. That is why vested benefit accounts practically pay no interest any longer. Nevertheless, at modern foundations you can decide for yourself how your money is invested – for example in bonds, equities or other securities. While the value of your investment can fluctuate, the long-term returns are usually higher than on a vested benefits account.

Do we have sufficient cover as a cohabiting couple?

Under social insurance schemes and inheritance law, life partners are in a worse position than spouses: The surviving partner does not receive an OASI widow’s or widower’s pension, while many pension funds apply strict conditions to their pensions and one-time payments, and the statutory succession rules do not take life partners into account. Many cohabiting couples therefore have insufficient cover in the event of a partner dying.

Life insurance: What do I need to know?

It makes little sense to put away your money in a life insurance policy covering death and disability, while building up your savings at the same time. It is often unclear how much ends up in your savings, how much the insurance element costs and how much goes to the broker in the form of commission. It is usually more beneficial to organise your savings via cost-effective investments, such as an ETF savings plan, and then also take out separate risk insurance that covers you and your family for any eventuality.

How should I organise my pension if I work part time?

Working part time often results in large gaps in your pension because your lower income will automatically result in fewer savings for your retirement. Another disadvantage is that many pension funds apply the full coordination deduction to determine the insured salary. This results in lower benefits. You should check how "part-time-friendly" your employer’s pension fund is. Progressive funds adjust the deduction in line with your level of employment. And you can also contribute to a private pension fund, for example by regularly paying into your pillar 3a. If you are thinking about reducing your working hours, you should read our free-of-charge information sheet "Pensions while working part time".

Self-employment: Have I organised my pension ideally from a tax perspective?

As a self-employed worker, you have the choice of organising your pension via a pillar 3a or a pension fund. The higher your salary, the more attractive it is to become a member of a pension fund. While contributions to a third pillar are limited to 20% of your net income, with a maximum of CHF 35,280 per year (as of 2023), you can pay  up to 25% of your OASI annual salary into a pension fund. Pension fund members can additionally pay up to CHF 7,056 into their pillar 3a each year. You can find out more in our free-of-charge information sheet “Tax tips for entrepreneurs”.

What do I need to pay attention to as a home owner?

When buying a home, families take on board a large financial liability. If the family’s main earner loses their source of income, the survivor's and disability pensions paid by OASI and the pension fund are often not enough to keep their home because the lower level of income no longer meets the bank’s affordability criteria.

LGBT: What does "Marriage for all" imply for us?

From 1 July 2022, same-sex couples will be able to marry or convert their registered partnership into a marriage. This creates new possibilities – and raises new questions. 

True: In marriage, both partners are automatically afforded better security than in a registered partnership or cohabitation. However, marriage is usually not enough to provide the most comprehensive financial security for the surviving partner. Marriage and inheritance law offer a number of possibilities, provided they are properly exploited.

Marriage also has far-reaching consequences for social security, matrimonial property, inheritance and taxes. That is why it is important to inform yourself well before you decide to take this step.