This is my first post I ramble a bit, so I hope everything is clear.
My girlfriend works at a large swiss company, that offers 20% discount on various insurance products. We got an offer for 3a with a monthly payment of CHF 500. The fees are quite high (CHF 19.90) and there is an insurance (“Prämienbefreiung bei Erwerbsunfähigkeit”, CHF 26.60) included. I am not sure how the fees are related to the total payment amount if that were to be increased. It is also possible to buy 3b (our adviser said the fees are the same and it can be withdrawn at any time). As far as I understood it is possible to buy up to 20k (3a+3b including payments to other 3a providers).
- The company pays 20% of the monthly cost (not sure how fees are handled)
- Maximum of 20k per year is possible (3a + 3b)
- I did not consider investing the cash there. Mainly to keep the calculation simple.
- The money would otherwise be invested at Viac or Degiro.
- 3a transfer within 5 years costs CHF 300 (not sure about 3b)
- The fees would be payed by the 20% discount, so about 11% are left over
There are so many unknown variables and my math is rusty, that I am unsure of my calculations.
I am not sure how the discount is taxed. Worst case the whole 20% is taxed as income.
How would you handle this situation? Under what conditions does it make sense to take advantage of the company discount?
Maybe it could make sense to invest the money at the company (probably active funds with higher TER). On the other hand the position could also be used to reduce risk, instead of leaving the money at the bank.
Thanks for all your inputs and please tell me if you need more information or have any questions.