Does such a product exist in Switzerland?
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They do and are done by quite a few insurance companies. However because interest rates remain low they aren’t as popular in Switzerland, so i think one would have to go to a broker to find out some rates. I think swiss life have some policies as well.
Can’t hurt for OP to get a quote. At least it’s one way to get certainty versus working out different withdrawal rates etc.
Summary
Rentes example of a broker, not an endorsement and I have not used them
In the UK where interest rates are higher the annuity market seems larger and more competitive not sure about Switzerland.
You‘ll unfortunately not get anywhere close to the 5% required by OP‘a mum.
Maybe 2.5% (inflation adjusted) tops in CHF.
Indeed not very popular here. That’s basically what we have to choose with our second pillar, Capital or annuities.
But I hear it is better to take your capital here because first, you have the flexibility to do what you want with your money and second, if you die, the remaining capital goes to your heirs.
I think she prefers to have the flexibility to pay large expenses if needed and also to enjoy life while she can. Not easy to find the right balance.