Bank or insurance? How to properly secure your retirement provision!

Bank or insurance? How to properly secure your retirement provision!

In Switzerland, banks and insurance companies are central players in the area of ​​private pension provision. Both offer different solutions, each with advantages and disadvantages. Current reports show that the third pillar of retirement provision, which supplements the AHV and pension funds, is indispensable for many Swiss people. Pillar 3a in particular, which is supported by the state, plays an important role in long-term wealth creation.

Pillar 3a allows tax-deductible payments of up to 7,258 francs annually for employees with a pension fund. This regulation encourages saving for retirement, while over 140 billion francs are tied up in pillar 3a, which corresponds to 10.4 billion francs in deposits in 2022. However, the paid-in assets remain blocked until certain conditions are met, such as retirement or the purchase of home ownership.

Advantages and disadvantages of banks and insurance companies

Both providers differ significantly in their Pillar 3a offerings. The advantages of banks in particular are a high level of flexibility and the ability to choose from various pension solutions, such as Savings 3 accounts and pension funds. This also enables savers to make irregular bonus payments into their pension provision and to maximize returns by investing in funds or ETFs.

On the other hand, insurance companies have their own strengths. They offer the opportunity to combine retirement provision with other insurance products, which is particularly attractive for people with physically demanding jobs or family obligations. However, returns are typically lower and management costs may be higher. Insurance guarantees a fixed return, which could be interesting for risk-averse investors.

Pillar 3b and further considerations

In addition to pillar 3a, there is also pillar 3b, which represents a more flexible form of pension provision. Deposits are not tax deductible here, but access to the saved assets is possible at any time. Banks offer more flexible products in this area, while insurance companies often require long-term commitments.

In a direct comparison, banks provide significant advantages in terms of flexibility and return opportunities, while insurance companies offer additional security. When it comes to insurance, coverage in the event of disability or death is a crucial argument, while banks do not offer guaranteed payments in the event of such events.

The choice between a bank or insurance solution depends largely on individual needs. Anyone who values ​​flexibility and higher returns could choose the bank. However, if you need additional protection, you should consider insurance. A combination of both solutions can also make sense in order to take advantage of the advantages of both systems.

In order to gain clarity about your personal situation, it is advisable to carry out a precautionary check. This measure can be crucial in developing the right private retirement planning strategy that meets individual life circumstances.

In summary, both banks and insurance companies offer valuable options for private provision in Switzerland. Ultimately, it is crucial to make an informed decision based on your own retirement goals.

For further information about the advantages and disadvantages of the different pension models, you can read the articles from Nah and Press release be consulted.