What you need to con­sider when in­ves­ting your pillar 3a in securities 

1. Your aims: what is more important to you, do you want to achieve the highest possible return or the highest possible security?
    
2. The time horizon available to you: do you have a long time left until you turn 65 (the pension age for men) or 64 (the pension age for women*) or do you only have a few years to work with? Or are you planning on withdrawing your pension assets early, for example to buy your own home?
    
3. Is sustainable development something close to your heart, and do you want to only support sustainable companies with your pillar 3a?

 *from 2028, the retirement age of 65 years will apply for women and men

You can find out what kind of investor you are by answering some simple questions directly online in frankly. Different financial institutions call their investment strategies by different things. At frankly we call them security-conscious, cautious, balanced, ambitious, opportunity-oriented.

The main difference between these strategies is in their equity weighting.

Because shares are subjected to comparatively large price fluctuations, this influences both the expected return and the risk which your pillar 3a credit balance is exposed to:

• Do you want less risk and fewer fluctuations? Then you need a lower equity weighting. However, this reduces your potential return.
• Do you want the chance of higher returns in the future? Then it makes sense to have a higher equity weighting.

Here’s a small tip as well: for pillar 3a investment products, the equity weighting is usually given as a number in the name of the product.

Bei frankly hast du die fünf folgenden Anlagestrategien zur Auswahl:

frankly gives you the following five investment strategies to choose from:

The equity weighting depends on how willing you are to accept possible fluctuations (risk) in expectation of a future return. Unfortunately there’s no way of having high potential returns without accepting the risk.

You can devise various different strategies for your pillar 3a, i.e. with various timeframes. This opens up a wide range of exciting possible combinations. For example, you can invest a pillar 3a following a high risk strategy and then a year later also invest another pillar 3a while being more security-conscious. This way you can reduce your risk or create extra opportunities for higher returns. However, if you are pursuing multiple investment strategies, please note that it is best to have one pillar 3a per strategy. This also gives you maximum flexibility.

All these terms can be somewhat confusing at first, but once you’ve looked at it in more detail, it all becomes quite simple. The key factors in deciding which investment strategy is right for you are your time horizon and how much risk you are willing to accept for a potential return.