Hi there !
Through another topic on the forum, I put a subject on the table that could be debated.
In advance, thank you all for your expertise! Any point of view will be welcome!
After 5 years of 3rd pillar with insurance with a low interest rate, a broker made me switch to a 3rd pillar with a contribution level of 6,500 per year (paid in one go to limit costs) , and a guaranteed capital of 250kCHF (+20k from the contract of the first 5 years). You will find that 6,500 CHF paid over 35 years will be less than 250kCHF, in other words, I would winner a lil bit. If we add the tax gain (25% of 6,500 CHF per year), this is more (yeah, of course, the tax on the capital withdrawn must be deducted)
I am already invested in dividend equity markets and ETFs with part of the rest of my savings (about 15kCHF/year).
However, I still wondered about stopping my current 3rd pillar contract to move to Pax or Finpension that I discovered recently.
My contact tells me it’s not particularly relevant. His arguments are as follows:
- the 3rd pillar is provided as a supplementary pension. Would you be willing to risk your retirement with the markets? if the stock markets collapse before you retire, your current contract guarantees you a capital of 250+20kCHF upon retirement. And it’s guaranteed. And if you want, you can use the rest of your savings “which you don’t need” to invest in the markets, don’t hesitate, in the end, this will also be a plus for your retirement!
- moreover, your current contract covers you against the risks of disability and death. It’s important if you’re thinking about your family…
Again, I will be ready to stop everything, immediately and go to Finpension or Viac.
But his argument of guaranteed capital for retirement + not subject to the markets variations + using the rest of my savings for the markets : it does not seem wrong to me too…
Additional information 1: In addition, if I can, I will take early retirement.
Additional information 2: apart from the family, we do not close the door to going abroad in 5, 10, 20 years…
Additional information 3: I am also wondering at the moment about buying back my 2 missing years of the 2nd pillar, do not tell my wife in case she wants to divorce hahaha
Thanks again for your views!
A very nice day to all!