You already have a pillar 3a? We’ll show you why it’s worth switching to frankly, what fees you save, and how you can get more out of your pillar 3a.
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 3a savings account. This is because interest rates are at a record low. In 1987 they were 7%, but now they are around 0.25% depending on the provider.
What does that mean in concrete terms? Assuming you have CHF 60,000 in your 3a savings account, this means you only receive CHF 150 per year in interest. 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 0.17% per year. If this remains the case for the next 20 years, your 3a savings account will bring you tax advantages but otherwise it will be a zero-sum game.
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:
How you can save on fees with frankly
Studies show that the total costs for traditional pension products average out at 1.21% 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 1.21%. 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.
Open your account at frankly.
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