La page est en train de chargement

The 3rd pillar : a question of choice

Blog | Various

According to study from the University of Applied Sciences Northwestern Switzerland, the 3rd pillar owns a capital importance specifically among the youth. It also emphasizes on the differences between the regions of Switzerland, the age ranges and the savers' genders.

Young people subscribe to the 3rd pillar at an increasingly early age

When it comes to welfare, there is not much of a difference between men and women – 42% of women compared to 47% of men – but rather in the savers’ age range. Indeed, 55% of those under 35 years of age have already chosen a private welfare solution, and this before their 25th anniversary. This can be attributed to the lack of confidence from young generations towards the 1st and 2nd pillars. It is also important to note that the 3rd pillar saving, very attractive on the fiscal plan, is only available since 1972.

Which kind of saving should you chose?

Among the panel of possibilities given to the savers, making a choice can prove difficult. Should one opt for a banking solution, meaning the opening of a specific bank account for the 3rd pillar, or rather go for a insurance solution, such as a life insurance? Then, when you chose the banking solution, a new choice is made available to the future savers : should one save in cash or bonds? however, this second option remains rare, with only 33% of those above 55 years of age and 12% of those under 35 years. The risk to saving with bonds could explain the reluctance of the younger, even though this strategy can prove more profitable in the long run.

Interest rate and remuneration

Do you know the interest rate of you 3rd pillar bank account? The answer will most likely be no, as 74% of savers don’t know their interest rate. The compound interests can have a decisive impact on the assets of the saving but this does not seem to concern the savers. However, the remuneration of the 3rd pillar is essential, especially for the savers who chose the cash account solution, which represents a 70% majority, ages and genders all together.
If you’re interested by the study, please have a look at this graphic (french only). Link or Original article on Market.ch (french only)