Proper re­tire­ment plan­ning for new­comers from abroad 


Have you just moved to Switzerland? We’ll show you an example of how a pillar 3a makes sense for you as well as the easy way to get started. The following example refers exclusively to private retirement planning.

For example: Michael, 45 years old, from Germany

Let’s say you are Michael, you’ve recently moved to Switzerland and you are employed: Michael is 45 years old and married. He works as an IT specialist in Zurich Enge and is a member of a pension fund. He has another 20 years until retirement age. That’s a long way off, which means that it’s all the more important for him to make the right decisions now.

Possible investment product: Moderate 45 Index

Michael opts for an indexed investment product that contains a moderate equity component (45%). The investment product aims to generate long-term capital gains in the form of price increases and income from dividends and interest payments. In exchange for this, Michael is willing to take a risk. Indexed investment products are also designed to track the performance of the market as closely as possible and to generate moderate investment gains over the long term. 

To the investment products

Tip: Compare fees and performance. We advise Michael to check the fees and performance of 3a providers when it comes to saving with securities! frankly is 59% cheaper than comparable securities savings offers (source: 

To the comparison with competitors

What kind of savings could Michael achieve with frankly?

Based on the initial situation, Michael could achieve the following retirement savings with frankly compared to a traditional pillar 3a account:

Statement of changes in net assets:

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Calculation and risk information

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Statement of changes in net assets:

If Michael were to leave his money in a normal 3a account, in 20 years’ time, providing he remains employed and living in Switzerland and assuming interest rates remain low at 0.80%, he would have CHF 153,597. However, if he were to save in securities with a 45% equity component, with a hypothetical return of 3.44% (net after costs) this could rise to CHF 198,200.

The possible savings with securities are worth much more than just a few hundred francs. Michael, for example, is 45 years old, employed and a member of a pension fund. In the future he pays CHF 7056 each year into his pillar 3a account with frankly, and he chooses an investment product with an equity component of 45%.

Calculation and risk information

Assumptions: equity component 45%, hypothetical return per year 3.20% (net after costs).
The future returns and risks presented here are for illustrative purposes only. Securities savings may fluctuate, the hypothetical return cannot be guaranteed, and tax effects are not included in this forecast.

Economic models and statistical methods are used for calculation purposes. The forecast corresponds with the most likely performance, and can be predicted for an investment horizon of up to 10 years. In the event of a longer investment horizon the calculations are continued using the same values, whereby no statements can be made about the probability of the calculated results occurring. In the event of very unfavourable market developments, the performance may be lower than the nominal savings value. The calculated values are net of the frankly all-in fee, and are based on an interest rate on the pillar 3 account of 0.80%. Please note that inflation and the taxes payable when the balance becomes due are not included in this forecast.

Tax tip:

Anyone who pays taxes in Switzerland can benefit from comprehensive tax advantages with a pillar 3a. All 3a assets are exempt from withholding, net worth and income taxes during the term. The contributions paid into your pillar 3a can be deducted in full from income in the tax return. When withdrawing from your pillar 3a, the capital is taxed separately from other income at a reduced rate.

Whether or not you have to fill in a tax return depends on your residency status and your level of income.

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