Hello everybody, I am currently struggling because i don’t know what to do with my 3a.
Some context :
-I arrived in Switzerland in February 2016. A little bit later, a seller recommended by a friend contacted me and proposed me a life insurance as a 3a pillar. At the time, i did not know what where the different possibilities for a 3a ( for instance that i could have invested in funds instead), and i thought it was always a good idea to save money, so i signed.I think I have made a mistake. Furthermore, at that time i agreed to pay the maximum contribution possible per year (6768 CHF, or 564 CHF per month).
-I would add that as a foreigner ( I am French), and earning less that 120k CHF per year, i am subjected to the withholding tax. So I am not even sure that my 3rd pillar will make me save taxes this year (and possibly in the following years too).
-In between, with my wife we decided that in around ten years we will retire and go living in her home country (Poland).
This make me tickle regarding my insurance because i fully expect that i will be harshly penalized when i cash out my 3rd pillar after only ten years.
Finally, today i read the assurance policy once again, and i realized that at retirement age, the guaranteed capital is less than my total contributions. I find it a big price to pay for money blocked for 35 years.
So I am seriously considering stopping to pay the insurance premiums, and renounce to the sunk costs ( the seven months I already paid this year) and instead invest this money myself. That would be a loss of around 4512 CHF. But I fear to lose much more if I stay in this contract.
What would you do? Is this a good idea to renounce to this life insurance?
Thanks in advance,