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Old 06.06.2008, 20:35
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Jim2007 Jim2007 is offline
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Re: Pensions - how much are they really worth

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My problem was I did not think I would reach this age - I think the little pension I have in the UK, I will try and merge into my swiss pension.

I will possibly increase my mortgage repayments so that when I am 65 there is a small reserve in my house which I can draw on - in case I live too long.

Most swiss people I speak to seem to do the opposite of this - they increase their mortgage and improve their homes. It is tax beneficial, but does not give you any emergency funds.
If I was you I would:
  • Buy as much as you can into the pension fund - you'll save big on the taxes (5,000 in the pension cost you say 4,000)
  • Next the 3 pillar - again you'll save on the taxes
  • Next invest in an index fund - gains are tax free and with 15 years to go it should be fine.
As regards the mortgage do it the Swiss way... If you do it as you are currently suggesting, it does not work out, since once you sell the house you will need to pay rent - a new out going, so you are back to square one....

Jim
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