By Martin Player, November 10, 2018
The Human Resources Department has informed us that employees with higher salaries can now use the pension plan 1e. That's where I understand the station. What is the precaution 1e? B. N.
Nowhere else have Swiss people saved as much money as in the pension fund. For decades this has accumulated a lot of money. However, unlike when your money is in your private bank account, you as an insured usually can not decide how to invest so much money saved from payroll deductions and contributions from the employer. You can not decide directly about the choice of the pension fund or investment strategy.
Rule 1e creates more freedom here. As part of pension plan 1e, insured persons with an annual salary of at least 126,900 CHF can also decide on the non-compulsory part which investment strategy will be used to manage this capital. The term Vorsorge 1e refers to Article 1e of the occupational pension scheme (BVV2). By adapting the Free Movement Act as of October 1, 2017, the legal framework for such individualization of the investment strategy can be made possible.
As insured, you can choose 1e for your funds in the non-compulsory part of up to ten different investment strategies. Some strategies are conservative and others consciously take much higher risks. For example, choosing a significantly higher share will give you more attractive opportunities for return.
For many years, under which money remains in the pension fund, a large return on investment makes a great deal. The prerequisite for an individual choice of investment strategy in the mandatory area is that the employer offers such a pension-1e solution through his pension fund, which will be the case for you.
An advantage of pension 1e in addition to the higher possible return is the fact that there is no redistribution from employees to pensioners and additional potential for voluntary purchases to the pension fund. With such voluntary purchases in PK you can save big taxes.
Of course, the higher rate of return is not available free of charge. For you as insured, this means higher risks. Since the pension fund only in connection with retirement provision 1e must provide its first policyholders with the effective value of the retirement funds placed in securities at the time of retirement. If the financial markets are in poor condition and risk the investment strategy, it may mean that the additional mandatory part invested in pension 1e will be significantly lower due to book losses.
However, it may also happen on the contrary: if the chosen investment strategy is successful, you will get significantly more money.
As insured is a flexible one. You can change the strategy several times. When you are young, you are more likely to choose a risky strategy with high equity because you have a very long investment horizon. On the other hand, a few years before retirement, it is meaningful to switch to a conservative strategy and to take previous book services.
Vorsorge 1st gives you more freedom when you invest the additional compulsory funds. However, you must be aware that you are responsible for the risks and that you take this into account when choosing your investment strategy.