Good reasons for chang­ing your pillar 3a to frankly 

Has this ever happened to you? You lend somebody your car and get it back with the tank half empty. Fairly annoying, isn’t it? The exact same thing can happen to the money in your private pension. It doesn’t have to be that way though. You already do a lot for your pension. Do you have a pillar 3a, perhaps as a savings account or in securities at a bank? We’ll show you why it’s worth switching to frankly.

At the moment, your money isn’t doing much for you in your pillar 3a account. This is because interest rates are at a record low. In 1987 they were 7%, but now they are around 0.72% on average (as of 01.07.2023) depending on the provider.

What does that mean in concrete terms? Assuming you have CHF 60,000 in your pillar 3a account, this means you only receive CHF 432 per year in interest (average interest rate of 0.72%). Better than nothing? If it wasn’t for inflation, it would be. But inflation reduces the purchasing power of your money. Over the last 20 years, the rate of inflation in Switzerland has been around 0.56% per year (source: BFS OnlineRechner, as of June 2023). If this remains the case for the next 20 years, your pillar 3a account will bring you tax advantages but hardly any returns (after deducting inflation).

If your retirement money is invested in securities, you have the same tax advantages as with a 3a savings account and significantly higher potential returns. There are three main keys to success:

1. Your money should be invested for a substantial period of time. This is why pension assets are very well suited for investing in securities.
    
2. The investment should be appropriate for your circumstances and risk profile.
    
3. The fees should be low, because otherwise they will reduce your return considerably. Even small differences in fees can really add up over a relatively long period of time!

How you can save on fees with frankly

Studies show that the total costs for traditional pension products average out at 1.15% per year (source: moneyland.ch).

Let’s assume you are a 40-year-old man and you have pillar 3a assets of CHF 60,100. You pay in almost nothing each year. This means you save CHF 21,200 with frankly, compared with similar products on the market, which charge an average of 1.15%. That’s more than a third of your total 3a!

So if you want to invest your pension money instead of paying fees, there’s only one solution: switch to frankly as soon as possible.

And the best thing is that frankly doesn’t get more expensive over time, but even cheaper! How does this work? With the unique community discount (link to home page with skip mark), the prices for everyone go down the more people use it.