I know there many (useful!) threads about the pension scheme in switzerland.

They are really good understanding the big picture but it is difficult to know if they are up to date on the small details.

I have been thinking about opening an account for the third pillar but the return on it looks low.

I don't want anything insurance related since the are not flexible at all.

Ok, so far the highest return I have found is 2.3%

http://www.axabank.ch/htm/669/fr/Com...%27interet.htm

That still doesn't look attractive enough to bury your money until the end of your days.

So I call out to the knowledgable guys in the forum: what is the best return you can expect right now? What are the riskiest assets you have seen?

I know there are some funds and I have looked at some of them but would be glad to hear your opinions.

According to the UBS consultant I spoke to, the maximum equity weighting is 50%, according to the rules of pillar 3a.

This appears to be the case irrespective of what age you are - so it is a lot less risky than I would select given the opportunity (as in a UK pension, for example).

I didn't know there was a hard limit on that. If I have to wait 30 years for my pension I would prefer to have at least 200% on equities.

So far the third pillar doesn't look very attractive, let's see if somebody has found an interesting product.

Don't forget the tax breaks and that these returns are guaranteed. If you do go ahead, make sure you only deposit up to 25-30 k CHF per account, then open a new one. This is because the taxes increase on withdrawal (check with your accountant/the bank for the exact amount).

Corner bank seems to offer an account with a 2.5% return.... comparis.ch is a good site with which to compare accounts.

I currently have one 3rd pillar account, with Credit Suisse (interest rate of 2.125% IIRC). So far I have 1.5 year's worth of 3rd pillar in there. I am aware that for tax reasons (when taking cash out) it is better to have more than 1. So I'm lookign for a new one. Any recommendations?

postfinance

You can just open a second with CS when you reach 30k or so.

not so good any more, they dropped the rate at the beginning of the year to 1.75%

CIC banque seem to have a good rate at the moment. but the less 'main' stream providers will promise you a rate now and possibly cut it in the near future once they have your capital!

So best thing would be to continue stuffing the first CS account, and then when I get to 30K, ask them to open another one? No disadvantages from a tax point of view (for when/if I want/need to tkae the cash out)?