A Guide To Life Insurance In Switzerland

By Author: vimal
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When it comes to ensuring financial security for life, the Swiss pension system is leading the way. Thanks to its pragmatic structure, it effectively provides families with the framework they need to not only build financial security, but also to maintain it in the long term.
The employer, individual, and the State all come together in a coordinated effort to offer cumulative benefits and it is this three pillar pension system in Switzerland that lies behind the success of the country’s retirement model.

The Three Pillar Pension System In Switzerland

• The first pillar is the responsibility of the State and covers basic needs during retirement.

• The second pillar is the responsibility of the employer and helps retirees to maintain their living standards.

• The third pillar is the responsibility of the individual and improves their living standards during retirement.

The Importance Of A Swiss Third Pillar Savings Plan

A Swiss third pillar savings plan has a vital role to play in ensuring an individual’s quality of life during their retirement since the other ...
... two pillars will only provide at most 50-65% of the individual’s final salary.
Since beneficiaries receive an impressive tax discount of between 25% and 45% on their contributions, the third pillar represents an outstanding investment, reaping higher returns than any other investment type.

Private individuals have full control over their third pillar which is split between two categories – 3A and 3B schemes. Individuals can only open a 3A scheme if they are contributing to their second pillar by being in employment and earning a minimum amount from one employer (or from self-employment). For those working for multiple employers or who don’t work at all, pillar 3B schemes are available via an insurance policy.

What Can I Use A 3B Swiss Third Pillar Savings Plan For?

A 3B Swiss third pillar savings plan can be used for many purposes including financing a dream trip or further education goals, as well as for protecting the individual’s family with life insurance or a loss of income policy.

To find out more about the benefits of a Swiss third pillar savings plan, get in touch with Charles Insurances today on +41 (0)78 601 40 90 or at contact@charlesinsurances.com.