What do you actually know about your pension assets?

Insights 11/13/2019
Reading time: 2 minute(s)

It’s actually a paradoxical situation: During our entire working lives, we pay into the pension systems, yet only very few people show much concern about the often considerable assets accumulating there for them. This is ironic because – in contrast to prevailing opinion – as a pension fund beneficiary, you definitely have a say in the matter.

By means of occupational pension plans (2nd Pillar) and private pension plans (3rd Pillar), capital can be built up specifically to provide for retirement. As long as no claim event occurs, it is possible to take advantage of various options to optimize the retirement funds in line with your needs and personal risk tolerance and capacity.

2nd Pillar: determining how your pension fund contributions are invested

Something many people do not realize is that an entrepreneur can divide his company’s occupational pension plan into a basic and an executive plan. This offers three key advantages:

  • You can avoid cross-subsidizing excessive pension commitments in the compulsory occupational pension plan
  • You can select different investment strategies within the 1e executive pension solution
  • You have better insight into your personal pension portfolio; performance and costs incurred are transparent

In addition, personal factors such as risk tolerance and capacity, or the investment horizon, can also be taken into account. This makes sense, as younger insureds often want to invest more in equities, while risk-averse insureds prefer a more defensive strategy.

But even people who, as employees, are not in a position to choose their own pension fund often have several options for optimizing their retirement plan, too – for example with tax-efficient purchases, different pension plans, or a targeted withdrawal strategy.

3rd Pillar: Creating flexibility and getting the most out of it

In particular in restricted Pillar 3a, pension assets can be built up in a tax-optimized manner by making annual contributions (for the year 2019, a maximum of CHF 6,826 for employees with a pension fund membership, or a maximum of CHF 34,128 ​​for self-employed persons without a pension fund). Depending on the insured’s family and/or financial situation, a long-term insurance solution or flexible 3a bank savings (in an account or in securities) can be the right vessel for this.

As the 3rd Pillar (encompassing restricted Pillar 3a and unrestricted Pillar 3b) is significantly less regulated, a large number of options concerning pensions, tax optimization, and diversification of the total assets are available for gainfully employed persons, but also for private persons without earned income.

Providing for yourself independently – with our support

Make a timely appointment with one of our financial planning specialists, who will show you your personal options and clarify their financial advantages.

Make an appointment

  • Legal notice

    The data transmitted to Vontobel using this form are sent encrypted via the Internet. However, the possibility of unauthorized third parties accessing the transmitted data, particularly using malware on the computer, cannot fully be excluded. If you are using this form to send confidential data (e.g. your account number), you accept the risk of disclosure of your banking relationship and bank account information to third parties and you release Vontobel from any and all liability for damages incurred as a result of the use of this form, to the extent that such release is permitted by the law.

    By providing your phone number and/or email address, you declare your express consent to Vontobel contacting you by phone and/or unsecured email. The personal data provided by you are used and stored to handle and process your inquiry and in order for us to perform our contractual duties in connection with the services chosen by you. The personal data may be processed on behalf of Vontobel by a subcontractor engaged by Vontobel, including outside your own or Vontobel’s location. Your personal data are processed and stored for the duration of our business relationship. In addition, we are subject to a number of duties to retain and document. Finally, the duration of storage is also determined by the statutory limitation periods.

    Please note that the use of email and electronic means of communication involves significant risks, such as lack of confidentiality, possible manipulation of contents or sender, dispatch to the wrong recipient, viruses, etc. Vontobel does not accept any responsibility for damages in connection with the use of emails and electronic means of communication. Vontobel therefore also recommends that you do not send sensitive information by email, that received text is not included in responses and that the email address is newly entered manually each time.

    Vontobel does not accept orders for commercial transactions such as the opening of accounts, payment or stock market orders, cancellations of orders or authorizations, blocking of credit cards, changes of address etc. via this form. Please contact your branch or your relationship manager with regard to such transactions.

    Bank Vontobel AG
    General Counsel
    Gotthardstrasse 43
    CH-8022 Zürich

    Terms and Conditions of Use
    Privacy Policy

* Mandatory fields