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| There was an article about pension funds in yesterday Sonntag Zeitung. It suggests that Pillar 3 is crap unless we are within 10 years of retirement. We should invest in the markets instead.
After reading it, I also felt that the super conservative pension regulations in Switzerland exists just so that banks and other providers of investment funds as alternative to the 3a can thrive. | |
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Can you link that article? From what I know (and also
what I read), pillar 3a can be effective both if you're close and far away from retirement:
- Close to retirement: you benefit mostly from income tax deductions (in essence you make a return equal to your marginal tax rate, which you save)
- Far from retirement: you benefit mostly from tax exemption on dividends