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Old 07.06.2020, 16:51
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How do people prepare for their pensions?

Spin-off from this - https://www.englishforum.ch/3183618-post102.html - thread where there were quite a few comments on my pension choices (https://www.englishforum.ch/3183655-post110.html).

We save about 25% of our income into pillar 2 (mandatory and voluntary) and pillar 3. It might seem a lot but there is no real substantial pension anywhere else, nor do we own a house or other things. We chose this as the state pension in about 30 years looks woefully low and have no idea what else to do so that it is still feasible to stay in Switzerland after retirement.

What do other people do? Do you not worry about your pensions? Do you have a better way of putting money aside?
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Old 07.06.2020, 17:20
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Re: How do people prepare for their pensions?

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Spin-off from this - https://www.englishforum.ch/3183618-post102.html - thread where there were quite a few comments on my pension choices (https://www.englishforum.ch/3183655-post110.html).

We save about 25% of our income into pillar 2 (mandatory and voluntary) and pillar 3. It might seem a lot but there is no real substantial pension anywhere else, nor do we own a house or other things. We chose this as the state pension in about 30 years looks woefully low and have no idea what else to do so that it is still feasible to stay in Switzerland after retirement.

What do other people do? Do you not worry about your pensions? Do you have a better way of putting money aside?
Better to live for the day and let the future take care of itself
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Old 07.06.2020, 17:36
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Re: How do people prepare for their pensions?

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Better to live for the day and let the future take care of itself
That kind of saying is typically spoken by those who are totally cushioned by being well-off in the first place, or by those who have someone they can count on to bail them out if ever they fall on hard times, or by those who are simply irresponsible.

Or... maybe that's just a lovely dream of how nice it would be, if life could only be like that, and still be safe.
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Old 07.06.2020, 17:43
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Re: How do people prepare for their pensions?

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That kind of saying is typically spoken by those who are totally cushioned by being well-off in the first place, or by those who have someone they can count on to bail them out if ever they fall on hard times, or by those who are simply irresponsible.
Or those that don't have enough money. You can choose to do things now, or save all your money for a time that may never come.
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Old 07.06.2020, 17:58
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Re: How do people prepare for their pensions?

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Or those that don't have enough money. You can choose to do things now, or save all your money for a time that may never come.
You were not listening at school when compound interest was explained.

100 a month for 40 years growing at 12% gives 1,400,000, Fundsmith will likely return substantially more in the last 9.5 years including the recent crash it's compounded at over 18% in both £ or Euros.

Thats right under 5 Chf per work day will give you over 1 million
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Old 07.06.2020, 19:51
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Re: How do people prepare for their pensions?

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That kind of saying is typically spoken by those who are totally cushioned by being well-off in the first place, or by those who have someone they can count on to bail them out if ever they fall on hard times, or by those who are simply irresponsible.

Or... maybe that's just a lovely dream of how nice it would be, if life could only be like that, and still be safe.
There are some people who spend there whole life in the pursuit of safety. They never really live
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Old 07.06.2020, 20:13
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Re: How do people prepare for their pensions?

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There are some people who spend there whole life in the pursuit of safety. They never really live
Yes, you're right about that, and it's tragic. Some folk simply have no other option, when each little corner of safety is hard won, against high opposition or dire circumstances.

Those who are in a better place than that, have the opportunity to plan. So they may as well do so wisely.
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Old 07.06.2020, 17:37
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Re: How do people prepare for their pensions?

Yep, I know a couple of people who saved and waited for retirement To do everything, then died just before. Live whilst you can!
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Old 08.06.2020, 10:16
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Re: How do people prepare for their pensions?

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Yep, I know a couple of people who saved and waited for retirement To do everything, then died just before. Live whilst you can!
Well, the dead don't have any problems at all......I want to believe in that. Back to the living, never met anyone in a bar complaining about saving too much. All the complains are about lack of resources, not being able to help the family, travel, retire, how damned expensive the bar is, etc.

I'll pay 2 beers to listen the sob story of the guy who saved too much
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Old 08.06.2020, 08:59
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Re: How do people prepare for their pensions?

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Better to live for the day and let the future take care of itself
This attitude is probably a good contributor as to why you are so miserable as a pensioner.
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Old 08.06.2020, 09:12
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Re: How do people prepare for their pensions?

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Better to live for the day and let the future take care of itself
Agreed, but I would like to add that a lot of people have no option other than to let the future take care of it´s self.

Others, like my father have worked hard all thier lives (mine had a 10 stint in Indonesia) have paid off the house and was looking forward to a life of a pensioner with enough to see him through.
Died at 68, two years into pension.
And as for me? Well at least I don´t need to worry about who to invest with to get the most dividends...
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Old 08.06.2020, 10:22
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Re: How do people prepare for their pensions?

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Better to live for the day and let the future take care of itself
In Switzerland if you run out of money in old age, the state pays to keep you fed, housed and looked after, courtesy of tax-payers. You are essentially saying "Better to spend all my money on myself now because in the end I can bum off the state." Not a responsible outlook on life, and one I see quite commonly in the UK, but not here.
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Old 08.06.2020, 11:49
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Re: How do people prepare for their pensions?

I have Fundsmith too, directly with Luxembourg. Opening the account was a bit of a pain, but since then topping up via fax and then sending EUR via Revolut is pretty easy, and they have been very good about sending statements via email and post.

I have about 25% of my holdings in Fundsmith, and about 15% in SSON (via IB).
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Old 08.06.2020, 12:00
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Re: How do people prepare for their pensions?

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I have Fundsmith too, directly with Luxembourg. Opening the account was a bit of a pain, but since then topping up via fax and then sending EUR via Revolut is pretty easy, and they have been very good about sending statements via email and post.

I have about 25% of my holdings in Fundsmith, and about 15% in SSON (via IB).
I found SSON shares in IB. Is this the thing?
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Old 08.06.2020, 12:54
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Re: How do people prepare for their pensions?

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I found SSON shares in IB. Is this the thing?
yes
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Old 08.06.2020, 12:18
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Re: How do people prepare for their pensions?

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I have Fundsmith too, directly with Luxembourg. Opening the account was a bit of a pain, but since then topping up via fax and then sending EUR via Revolut is pretty easy, and they have been very good about sending statements via email and post.

I have about 25% of my holdings in Fundsmith, and about 15% in SSON (via IB).
They take KYC & money very seriously
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Old 08.06.2020, 13:16
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Re: How do people prepare for their pensions?

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In Switzerland if you run out of money in old age, the state pays to keep you fed, housed and looked after, courtesy of tax-payers. You are essentially saying "Better to spend all my money on myself now because in the end I can bum off the state." Not a responsible outlook on life, and one I see quite commonly in the UK, but not here.
I see this frequently on another U.K. forum I’m a member of. Lots of talk on how to ensure the council don’t force your parents to sell their house to fund care homes and the like, as they think it is stealing either from someone who has worked all their life to own their house or stealing the inheritance. I certainly don’t want to rely on the state to look after me in my dotage and I think the general expectation in the UK is wrong, but where I do have some sympathy is the amount of tax you pay in the UK. I can see why if you are paying 40%+ tax for most of your working life, you might expect some return. IMO the lower tax rates here allow you save to better provide for yourself.
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Old 08.06.2020, 14:07
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Re: How do people prepare for their pensions?

I thought I should check performance from Tullet Prebon start date 4/12/03 - 31/12/12 where £1 became £3.1176 net of fees, if that had been invested in Fundsmith on 31/12/12 it would have grown to £11.82 on Friday or a compound rate of return of 16.15% over 16.5 years with 2 spectacular market crashes thrown in!

In simple turns £84,000 became £1,000,000 in 16.5 years.
Funnily enough Terry Smith had back tested 30 years from 2010 & came up with 16% compound as a long term growth of the sort of stocks he was proposing to invest in.
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Old 08.06.2020, 19:26
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Re: How do people prepare for their pensions?

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In Switzerland if you run out of money in old age, the state pays to keep you fed, housed and looked after, courtesy of tax-payers.
More like this:
  • Fed means: just enough money to get by if eating mostly pasta
  • Housed means: rental covered up to a maximum rental limit at which it is very hard to find even a bachelor studio, and no help to find such accommodation, and penalised for every franc that exceeds that permissible monthly limit
  • Looked after means: mostly, nothing. Perhaps Spitex home nursing to come by, if there is a medical reason.

Also paid is the basic medical insurance premium, and that's a real blessing. And a small monthly allowance to cover everything beyond medical and rent.
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Old 07.06.2020, 17:38
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Re: How do people prepare for their pensions?

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What do other people do? Do you not worry about your pensions? Do you have a better way of putting money aside?
I put minimum into my pillar 2 as I don't like the inflexibility of having the money locked up for so long (and having limited investment options).

I've invested in property and also in taxable accounts.
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