Pillar 3a: Save securities & invest flexibly

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Pillar 3a: Save securities & invest flexibly

Find out now why the investment products of Zurich Invest in pillar 3a offer an interesting alternative to simple pension accounts at a bank.
Do you wish to make provisions for your old age but are you not yet paying into pillar 3a? Or perhaps you already have a 3a account with a bank but it pays very little interest? Either way, it is worth considering the investment products of Zurich Invest Ltd as an interesting alternative. Zurich Invest Ltd offers a securities solution within pillar 3a – so-called "securities-based saving."

Save on taxes and invest – flexibly with a wealth of opportunities

The saving process within pillar 3a restricted pension plans offers you tax benefits and optimal flexibility, as you decide when and how much you wish to pay in. Whether you are safety- or risk-oriented, Zurich Invest Ltd offers the right strategy for all types of investors within the context of securities-based saving. You decide whether you wish to invest your money in pure money market or bond funds, pure equity funds or mixed portfolios, based on your risk appetite and investment period.

Why securities?

Your benefit with securities-based saving: Your money doesn't simply sit in an interest-based pension account but develops in line with the capital markets through your securities. At Zurich Invest Ltd, your third pillar consists of collective investments (i.e., funds) which invest more in equities or bonds, for instance, depending on your investment strategy. Real estate can also be included. Investments are made broadly. This means that the risk is spread if certain investments fail to develop as was hoped.

Allow your money to work for you

Compared with a bank account, securities yield greater returns in the long term. At present, bank accounts are paying so little interest that it is scarcely possible to compensate for inflation. What's more, there are usually fees to pay, which also nibble away at your meager interest. In short: Your money sits around in your account but doesn't work for you. Nobody knows when the situation will change with respect to interest rates. It has already gone on for around 10 years though.

The long-term result is usually good

Are you worried about a stock market crash? Does fund-based saving seem too uncertain? If you only wish to invest money for a short time, it may well happen that your investment loses value painfully in a crash. But for younger people in particular, pillar 3a has a very long investment term, as you are saving money for your pension – which may still be decades away. Usually a crisis will be followed by an upturn, and a positive trend arises in the long term, as studies have proven.

Securities-based saving pays off even in times of crisis

A study by Swiss private bank Pictet analyzed stock market development over the past 95 years. This period included two world wars, the global economic crisis of the 1930s, the oil crisis of the 1970s, the recession of the 1990s and the financial crisis of 2008. Nevertheless – apart from in the major stock market crash in 1929 – investors have always made a profit if they retained their share packages for at least 13 years. The average increase in value per year was just under 8 %, according to the calculations of Nadia Gharbi and Jacques Henry from the Asset & Macro Research Team at Pictet Wealth Management. Even if you only reckon on a moderate return of 4 % after costs, your money that you invested will have more than doubled after 35 years – thanks to the compound interest effect.

5 reasons why your switch to Zurich Invest is worthwhile

  1. Considerably higher opportunities for profit than with a savings account
    Interest is currently so low that investing in a savings account yields practically no returns. Your money slumbers instead of working for you. And you miss out on investment opportunities in the meantime.
  2. High-quality and flexible investment products 
    With Zurich Invest you can choose between five different investment strategies – from conservative to risk-friendly. You have the chance to change your strategy once a year – at no cost.
  3. Your investment boosts sustainability
    Whatever strategy you choose, your investment will contribute to climate protection in every case: If you decide on an investment solution involving bonds, you will automatically invest in green bonds. These are impact-oriented and promote climate protection. If your investment solution contains equity funds, you will invest indirectly in the "Carbon Neutral World Equity Fund." This offsets carbon dioxide emissions. At least one of these climate-friendly investment forms is included in every solution. And even with respect to other investment forms, we take account of the ESG principles for sustainable investment.
  4. You can enjoy independence and security
    Zurich Invest Ltd manages assets worth over CHF 42 billion, largely via independent fund managers who act in the interests of their investors. This principle has impressed many large pension funds, among others. 
  5. We are available to answer your questions at any time
    Are you uncertain which investment strategy you should choose? Or would you like to change your strategy at no charge later on? Call us: Our Customer Services employees are extremely competent, speak a total of six languages fluently and work from Switzerland on a daily basis. They would be delighted to assist you.

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