I also think you should consider 2nd pillar as part of your portfolio. Yes, you will not be able to withdraw it until retirement, but you shouldn’t need to. Also, when you leave Switzerland or buy a flat, you can actually withdraw it.
Secondly, A 59-yo with years of paying into 2nd pillar is in a whole different situation than a 29-yo with no money in his 2nd pillar.
You can treat it as a bond or whatever, but if you count it as a part of your portfolio, then you should definitely adjust the expected rate of return of your portfolio. For example, if you have 200k in stocks and you expect 8% growth from it, and you have 100k 2nd pillar and you expect 2% from it, then you have a 300k portfolio with 6% expected growth.
At this point, the more interesting question to me is about the 1st pillar. I know it too little to tell, but I expect that there is still high chance that when I reach statutory retirement age, I will receive back something from the Swiss state.
Well I don’t know Swiss politics. Don’t know how reliable and stable local laws are, but I hope a bit more than in Poland. In Poland the 2nd pillar is called OFE (open pension funds), and it was all promised as your own money on your own account, but when the 1st pillar ran into troubles, the government made a shocking decision of shifting some of that money from the 2nd pillar to the 1st pillar. So they took some honey from your dedicated jar and put it into the big “everybody’s” jar.
The difference in Switzerland is, you have ways of cashing out before reaching retirement age. So if you see things don’t look so good, you can get the money before the government steals it from you. So I really don’t see your point. Your money even with 0% return is still your money.