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| First i should applogize if am asking again the same question. But, after reading all these posts, i am still confusted. For me, the LPP (2e pillier) is just like 3e Pillier, it is our own savings, usually in CH it is DC plan right? I think the only difference btw 2e and 3e pillier is 3e pillier is not compulsory. Now if they reduce the convertion rate, what they are going to with the residual money in our personal saving account (2e pillier account)? To assist the society to help the "poor-er" retired people?
LPP is not AVS, correct? Or i am missing something now, the new law tends to change LPP to AVS? | |
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AVS or AHV is the first piller. Old age state pension.
In the second pillar, you, and your employer, pay compulsilory into the LPP or BVG of your company's choice, usually a large insurance company. This is where the vote on the problem will be. The financial companies are worried we are all going to live longer and there won't be enough money for all the future pensioners. So why not raise the premiums by 0.4 % ?
I believe we will die earlier because of all the rubbish we eat.
The 3rd piller is privately controlled and voluntary, tax free savings up to (I think) Fr. 6,600 per year, and locked away until you retire, and .
Piller 3e is committed long term savings but not tax free.