Thanks for that simulation. In case of normal age retirement, a part of that 1M requirement would be covered by the annuity from pillar 2.
I included only 75% of max AHV in the last column.
For the total pension pot, as well as general investment accounts, some could be covered cover by from Pillar 2 or also Pillar 3a accounts. At least from Pillar 2 it is easier to build up as it is tax deductible on entry and grows tax free.
Nonetheless, you still have to build up a big pot!
I reconmend to look into Swiss RE funds with direct RE holdings. Dividend and wealth tax are close to 0, meaning that the tax value is just a small fraction of the value of the share price…
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What do you think about this fund that is planned to be listed next month → Kotierung an der SIX Swiss Exchange geplant | Zurich Invest AGZIF Immobilien Direkt Schweiz –Kotieru
Net return is below 3%, meaning just about 100 base points above SNB reference rate. Gross return of biggest new project is even worse with a lousy 3.6%. Payout ratio is just around 2.3%, equal to 100% of profit, which is pretty miserable for real estate. Write downs of that portfolio will be unavoidable.
I think this is a very bad offer. And it’s not surprising, as the market is turning downwards. The listing and opening to retail investor helps Allianz and their commercial investors to unload part of their risk.
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Excellent locations, high portion of residential use and hence low risk profile. Therefore also low return.
The existing buildings are rather old and need refurbs in the future. But thanks to the excellent locations, those refurbs should be profitable as rents can be (sufficiently) increased too.
This is a fund by Zurich Insurance, not Allianz 
And it’s not an “unloading of risk”. The problem for the insurers is that capital from life insurance policies is shrinking, hence their balance shrinks. Therefore, they need to sell RE.
But RE is obviously great to earn fees, so it’s better to sell it into a new fund rather than to the open market.
Exactly. And do you think they sell their best or worst assets first?
Any specific ones you can point to so I have a starting point to look at?
I personally like
- Realstone
- Good Buildings
- Suisse Romande Property
They all invest primarily in residential and have distribution yields of c. 3%
A mix of great and not so great assets. If they would only put their worst assets in it, nobody would buy the fund.
I lived in Zurich for a while and the services and infrastructure are much better than Basel - and that’s even before considerig that they charge less for it!
OK. Discussions today made me realise another expense I forgot: employer currently pays accident insurance. This will be something I have to pay myself after retirement.
It would be nice to know if there is a cheaper alternative than adding it to the health insurance.
Isn’t it always tied to the health insurance when not employed? Last time I checked, it’s some 20-30 CHF a month.
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Adding it to the health insurance should be cheaper than UVG as it only covers medical expenses and your usual deductible/excess also applies to accidents. I’m not aware of an even cheaper alternative.
Do you mean this is automatic once you lose your job?
I don’t have first-hand experience, but think you still need to add it within a month or so to have coverage.
But there’s no stand-alone solution, it’s then combined with general health insurance.
One has to do it for yourself, as begin of insurance required is very individual.
Often you get one month after contract ends from SUVA “for free”.
Then you can extend up to 6 months from SUVA (more expensive than via KK, but no Franchise to pay).
Lost your job and looking for a new one? → If you register as unemployed, SUVA-insurance coverage is “included”.
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