Pillar 3 – individual retirement accounts
Private pension plans form the third pillar of the Swiss three-pillar concept. They are growing in importance each day that passes. Pillar 1 and 2 pensions may be
significantly lower than what you previously earned (pension gap).
Pillar 3 individual retirement accounts offer several advantages: on the one hand, saving over the long term (wealth accumulation) provides state tax benefits and. on the other, private pension plans can also be drawn on in the event of death and/or disability. This is why it's a good idea to get an early start when laying the foundations for a comfortable retirement by adding
another pillar of support. The longer you pay in, the more savings you accumulate.
Pension gap
You should try and close as best as you can the pension gap that results without the third pillar and that could end up being substantial. After all, you surely do not want to lower your standard of living. So exactly how big is this gap? Zurich will help you plan your future and protect yourself against risks. Visit one of our customer advisors today for a no-obligation personal retirement analysis.
Exactly how big is your pension gap? Sample pension gaps:
Pension gaps in old age
Heidi S. is a single 49-year-old. Her annual income is CHF 78,000. After retirement, Heidi S. draws a maximum of CHF 27,360 per year from AHV/AVS and an annual pension of CHF 18,640 from the pillar 2 pension fund according to the pension plan regulations. Her annual income after retirement is just CH 46,000. This is only 41% of her previous income.
Pension gap in the event of death caused by illness
Peter H. is married with an annual income of CHF 70,000. If something should happen to him, his wife will receive an annual pension of no more than CHF 21,888 from pillar 1 and an annual pension of CHF 10,244 from the pillar 2 occupational pension. The difference in income is CHF 37,868 or about 54%.
Pension gap in the event of disability
Hans H. is 40 years old, married and has a six year old. His annual salary is CHF 80,000. Hans H. becomes disabled as a result of an illness. He receives a pension of a maximum of CHF 38,304 for him and his child from disability insurance (IV/AI). His pillar 2 pension fund provides an annual pension of CHF 23, 684 for him and his child. The difference to his present income is CHF 18,012 a year, and after his child’s education, it even grows to CHF 28,956.
We would be happy to advise you personally in this matter. Contact the
agent nearest you or contact us
directly online.