Pillar 3

Living as an expat in Switzerland has many benefits both in terms of lifestyle and financially. To ensure you can continue to enjoy the lifestyle you desire in retirement it maybe advisable to consider additional supplementary contributions on top of your Pillar 1 and 2 schemes. 

With advancements in healthcare, we are all living longer and so retirement will be far longer than it was for our parents and grandparents. So when it comes to saving for retirement the clock is ticking.

 How much you will need to save and what type of plan is best will depend on your personal situation. 

Where will you live in retirement?

What age do you plan to retire?

What lifestyle do you require?

What are your current retirement plans worth?

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Putting off saving for retirement now could cost thousands in the future. By way of an example a 30 year old paying in $500 a month will end up with a fund of £708,725 at age 65. Delaying saving by just 5 years to age 35 would mean a fund value of $502,810 at age 65 or delaying 10 years would provide $348,938 at 65 and putting off saving until 45 would provide just $233,956 at age 65. *

If you haven’t started saving for retirement yet, the best time to start is now.

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Find additional ways to save

Here are some ways to get your retirement on track

• Maximize your workplace retirement plan. If you have missed payments into your pension schemes, these gaps can be filled subject to limits. This can be a great way to maximise retirement savings
• Ensure you are using tax advantaged schemes. Pillar  2 and 3a schemes have the added benefit of proving tax relief on contributions so these allowances should be used first. 
• Devote funds from a windfall. Use all or some of your year end bonus to boost your retirement savings
• Set up a taxable savings plan. Once you have used up your tax advantaged allowances set up a further taxable account for your retirement savings.
• Give your savings a boost. As your income increases, up your savings rate too. Before you know it you will be saving more that you thought you could.

Better late than never

If you’re starting later in life, don’t get discouraged, there are plenty of options to help you reach your retirement goals. All it takes is discipline and perseverance

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