The Swiss pensions system is facing various challenges. As we are becoming increasingly older, the AHV and pension funds are forced to pay out pensions for longer periods of time. In addition, there is a lack of young people, with the result that significantly fewer insured people are financing the pension funds. Other major problems for our pensions system are shrinking returns on investments and negative interest rates. All these factors will result in the importance of private provision increasing against the background of generally decreasing pensions.
In 2017, the Swiss electorate were presented with two proposals for reforming retirement pension provision. Both the additional financing of AHV through an increase to value added tax as well as a federal act on the reformation of retirement pensions in 2020 were rejected by a slim majority. However, the challenges remain. In December 2017, the Federal Council set the direction for the next steps and resolved to reform AHV and the second pillar separately. Benchmarks were set at the start of March 2018 for the measures necessary to reform the 1st pillar. The Swiss Federal Department of Home Affairs (DHA) responsible, headed up by Alain Berset, has presented a preliminary draft on the stabilisation of the AHV at the end of June. Workers' and employers' organisations have signalled their willingness to discuss measures for reforming the 2nd pillar.
We all have lifelong dreams: perhaps you would like to ride a motorcycle down Route 66, own a rustic cottage in Ticino, or sail your yacht on Zurich Lake. It is worth fulfilling our dreams, especially when there is finally enough time to live them during retirement. It is also worth addressing the subject of which funds from the pension will be required for later life, and when.
Various things need to be considered: for whom else in the family should provision be made, what must be taken into account for tax purposes and how much pension will be required long term? The answers to these questions are highly personal.
Your bank's pension experts will provide you with comprehensive, competent advice so you can look forward to a new phase in your life with confidence and anticipation: whether we prepare a cash flow plan for you, or implement your financial planning, together we will come closer to realising your lifelong dream. Some things are just too important to leave to chance.
Tax advantages and preferential interest rates make pillar 3a the ideal foundation for private provision. Thanks to our 3rd pillar products, you do not need to suddenly limit yourself during retirement.
Take responsibility and embark on the future today. You and your loved ones will be well provided for in any circumstances with one of our 3rd pillar products.