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Old 17.03.2018, 12:55
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Pension fund can I choose where it is invested?

Hello,

I have got my pension fund with "AXA Winterthur" and I am not sure if I can choose where it is invested.

Cheers!
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Old 17.03.2018, 13:08
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Re: Pension fund can I choose where it is invested?

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Hello,

I have got my pension fund with "AXA Winterthur" and I am not sure if I can choose where it is invested.

Cheers!
If it's a company scheme, then you have no input.
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Old 17.03.2018, 13:59
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Re: Pension fund can I choose where it is invested?

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If it's a company scheme, then you have no input.
Not necessarily true. The new regulations of my pension scheme allow a portion to be invested in funds with different risk/return profiles. I don’t have the details yet, as it will be launched later this year.

I did get the sympathetic “stupid foreigner” look at the presentation when I asked whether we could choose whether to invest all of our pot in something riskier.
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Old 17.03.2018, 20:45
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Re: Pension fund can I choose where it is invested?

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Not necessarily true. The new regulations of my pension scheme allow a portion to be invested in funds with different risk/return profiles. I don’t have the details yet, as it will be launched later this year.

I did get the sympathetic “stupid foreigner” look at the presentation when I asked whether we could choose whether to invest all of our pot in something riskier.
I did the same during a Swiss Life presentation. One of their managers showed a simulation of a 40-old expat that comes to CH and starts to contribute to Pillar 3 in order to build a pension pot. I asked him why someone would choose to do such a low return investment, even considering the tax deductions, if investing in any 20-year period in the history of the S&P500 would give a much bigger pot in the end. People in the room gave me that look, but in the end I had a small talk to him and he whispered that I was right. He said that most people have such a fear of the word "stocks" that they don't even consider checking the subject more deeply.
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Old 18.03.2018, 18:23
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Re: Pension fund can I choose where it is invested?

Well I have sent them an email, let's see what they said if they answer..
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Old 19.03.2018, 08:44
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Re: Pension fund can I choose where it is invested?

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I did the same during a Swiss Life presentation. One of their managers showed a simulation of a 40-old expat that comes to CH and starts to contribute to Pillar 3 in order to build a pension pot. I asked him why someone would choose to do such a low return investment, even considering the tax deductions, if investing in any 20-year period in the history of the S&P500 would give a much bigger pot in the end. People in the room gave me that look, but in the end I had a small talk to him and he whispered that I was right. He said that most people have such a fear of the word "stocks" that they don't even consider checking the subject more deeply.
For international comparisons you need to adjust for changes in currency exchange rates. Plus, a lot depends on the available timeframe, the less time until retirement the higher the annualised return generated by the tax advantage.

However you don't need an insurer for 3a, that's not cost efficient at all and much too inflexible.
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Old 19.03.2018, 14:02
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Re: Pension fund can I choose where it is invested?

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I did the same during a Swiss Life presentation. One of their managers showed a simulation of a 40-old expat that comes to CH and starts to contribute to Pillar 3 in order to build a pension pot. I asked him why someone would choose to do such a low return investment, even considering the tax deductions, if investing in any 20-year period in the history of the S&P500 would give a much bigger pot in the end. People in the room gave me that look, but in the end I had a small talk to him and he whispered that I was right. He said that most people have such a fear of the word "stocks" that they don't even consider checking the subject more deeply.
and also that the 3a insurance plans are mostly front loaded, with up to the first 2 years of investments are not invested but taken as up front fees. Just a bit better than generali vision.

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For international comparisons you need to adjust for changes in currency exchange rates. Plus, a lot depends on the available timeframe, the less time until retirement the higher the annualised return generated by the tax advantage.

However you don't need an insurer for 3a, that's not cost efficient at all and much too inflexible.

well he said 40 years old. So there is still at least 20 year to early retirement.
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Old 19.03.2018, 14:08
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Re: Pension fund can I choose where it is invested?

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well he said 40 years old. So there is still at least 20 year to early retirement.
So his life expectancy of about 47 years, that's a long-term investment horizon in my book.
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Old 23.03.2018, 16:04
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Re: Pension fund can I choose where it is invested?

So here is the answer I got:

"Unfortunately it is not possible to invest your vested benefits into our occupational benefits institution."

Does it make sense? I am not sure about the terminology.. vested benefits and occupational benefits institution.

The question was if I can choose where my pension fund is invested.

Cheers.
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Old 23.03.2018, 17:46
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Re: Pension fund can I choose where it is invested?

The quick answer is only if your pension fund offers this as a possibility.

There is an article on this in the NZZ (https://www.nzz.ch/finanzen/wahlfrei...sse-1.18502895). In a nutshell, companies can introduce a two tier pension system in which you have the basic pension fund (covering the basic minimum payments) and a separate pension fund (in which the supplementary payments ("überobligatorisch") are invested) in which they can offer more individual investment options.
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