Last update: 17.09.2024 08:34
New year, new plans for your private pension? We talk to Daniel Peter from VIAC about pillar 3a. Like us at Smolio, Daniel wants to make a contribution to better pension provision in Switzerland with his company VIAC. In this interview, he explains how VIAC came about, shares his views on pillar 3a and provides valuable background information and tips.
Daniel (1987) is behind the idea of VIAC and is constantly developing the system further. He previously worked for a private bank and a family office in portfolio management and client advisory services.
Daniel Peter is CEO of VIAC AG and a financial expert.
Daniel, how did you come to offer a pillar 3a with ETFs?
I had the idea for the business model in 2015. The more I looked into the legal foundations of pension provision, the clearer it became to me what a better system should look like: The account opening process and portfolio management need to be much more efficient than traditional banking systems allow.
I then teamed up with my former work colleague Christian Mathis. I knew Christian from my previous job at a private bank in Lucerne. Jonas Gusset, who I knew from my time at the University of Basel, also came on board. Jonas did his doctorate in financial market theory there. We all had promising jobs in the financial sector. There we learned the banking trade from the ground up and were able to build up a lot of knowledge – including knowledge of active fund management. But we found that increasingly unsatisfactory. Because it’s all about selling the customer “a good feeling” at a high cost instead of guaranteeing an attractive return.
So if not much can be changed in terms of performance, then certainly in terms of fees. After all, it is well known that fees are the biggest drag on returns – especially for a very long-term investment such as pensions. You have also shown very clearly in your article just how big an effect fees have.
What vision do you want to achieve with VIAC?
VIAC, like you at Smolio, is making its contribution to better retirement provision in Switzerland. The problems with the AHV and the 2nd pillar are obvious. The Swiss population is becoming increasingly aware that independent pension provision is becoming more important. However, it is a shame if it is primarily the bank or insurance company that benefits from the population’s willingness to save through high fee income. And not the customers who show personal responsibility. Every Swiss person should have the opportunity to make their own pension provision independently and cost-effectively. If you don’t want to deal with a bank advisor or insurance salesperson, you can do without them! He can do this with VIAC in pillar 3a and soon this will also be possible in the area of vested benefits accounts (2nd pillar). VIAC stands for low-cost, user-centered investment options – we have a few ideas (smiles).
Addendum December 14, 2022: VIAC launched a vested benefits solution in May 2020.
Where do other pillar 3a products fall short?
VIAC’s aim is to create an easy-to-understand pension solution that allows anyone to invest in thousands of shares for as little as one Swiss franc – and at an unrivaled price. Because the system is based on self-service, there is no need for an expensive sales force. After all, everyone should and can take their pension provision into their own hands and open an account from the comfort of their own home in less than eight minutes. 15 basic strategies are implemented using low-cost index funds and ETFs. In VIAC’s 3a solution, the equity component can be selected up to 97 percent using the building block principle. You have also described other solutions for securities investments in the 3rd pillar. I am pleased that our solution is still unrivaled in terms of price.
Addendum December 14, 2022: as of 01.01.2023, VIAC will increase the maximum possible investment ratio from 97% to 99%. All customers with the standard strategies “Global 100”, “Switzerland 100” and “Sustainable 100” will benefit from this increase. In these strategies, the equity quota is automatically increased with the first trade in the new year. In addition, customers with their own strategy can also increase their investment quota to up to 99% from 21.12.2022. The first possible implementation will also take place with the first trade in 2023.
Our tip: Open pillar 3a with a CHF 25 bonus now
The VIAC competitor finpension is cheaper than VIAC with share quotas of 60%. Use the code SMLUTQ for your welcome bonus when opening an account. You will receive this as a fee credit if you deposit or transfer at least CHF 1,000 within 12 months. And you save for life with equity ratios of 60% or more thanks to very low fees. We would be grateful if you use our code when opening an account. We will then receive a small fee. This will not make it more expensive for you and we can cover the costs of operating the platform.
Why should you invest in ETFs in pillar 3a at all? You can do that without committing to a third pillar.
When investing money in securities, the longest possible investment horizon is an important basis. In pillar 3a, the assets are legally tied up until retirement and may only be withdrawn early in exceptional cases. This is why you generally have a very long investment horizon for these assets. One privilege of pillar 3a compared to private savings is the tax advantage – in other words, I can deduct my payments from my taxable income. In addition, the dividend income from the 3a securities does not have to be taxed as income and the pension assets themselves are not subject to wealth tax during the savings period. You have described all the tax advantages of pillar 3a in detail.
The only disadvantage of pillar 3a is that you have to pay tax on capital gains when you withdraw them. However, a reduced rate is applied here and the positive effects have a greater impact on the final result. All in all, we have created a very attractive product: It has lower costs than comparable private savings solutions and also pays interest on the cash, i.e. the liquid assets that are not invested in securities.
You are still a young company. What risk do I run if I invest my money with VIAC in pillar 3a?
VIAC is a product of the Terzo pension foundation of WIR Bank and is offered and operated by the bank. As a start-up, we developed the system and are bringing dynamism to the dusty pension market. So your money does not end up with our start-up, but with the Terzo Pension Foundation of WIR Bank. If something were to happen to our start-up, this would have absolutely no impact on you as a customer – your money is safe. At the time, we also considered how we could offer our customers the necessary long-term stability – which is why we were always looking for a close partnership with a bank.
How does a pillar 3a fit into your personal investment mix?
VIAC is suitable for anyone and everyone who wants to take their private pension provision into their own hands. Of course, we are primarily targeting people who want to invest in securities at low cost. But we have also launched an exciting new offer for people for whom security is more important than returns: the Account Plus. The Account Plus pays interest on the 95% cash portion at 0.30% interest and invests 5% of the assets free of charge (for the Global and Swiss focus) in equities as a long-term performance driver. VIAC therefore has a suitable product for everyone, regardless of whether they use a smartphone or PC.
And for whom is VIAC pillar 3a less suitable?
For people who value paper processes, high fees or long appointments with customer advisors (grins). Seriously: If you value personal advice, it’s best to make an appointment with a bank. Certainly not at an insurance company. For pure account savings, it’s also worth consulting an interest rate comparison on the Internet – or choosing our Account Plus.
You’ve been on the market for just over a year. How many customers does VIAC have now?
We now manage more than CHF 100 million for over 8,500 clients. The fact that we enjoy such a high level of trust in such a short time is not a matter of course. We appreciate this very much!
Addendum February 13, 2023: Anyone who implemented our recommendation in the article was not wrong. Launched in November 2017, Switzerland’s first fully digital pension solution had around 79,000 customers at the end of 2022 (previous year: 63,000), who had invested over CHF 2.19 billion (previous year: CHF 1.77 billion) in pension assets there.
Finally: What tip would you give investors for pillar 3a?
Separate “saving” and “insuring” in any case. In pillar 3a in particular, these mixed insurance products are particularly notable for the high acquisition commissions paid to the salespeople, i.e. the “customer advisors”. If you need insurance, then take a pure insurance policy where you know exactly what premium you are paying for the risk cover. And invest the savings part with the bank at the lowest possible cost – it’s worth looking at VIAC.
Thanks for the interview Daniel and good luck with VIAC.
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In einer Minute siehst du deine Vermögensentwicklung und dein Einkommen während der Rente.
