Last update: 29.07.2017 20:00
According to the Federal Statistical Office, households in Switzerland have a monthly savings potential of CHF 1,500.
Similarly, in a study, a quarter of the individuals surveyed stated that they had between CHF 500 and CHF 1,500 a month left over.
Enough to make something of it.
But how?
The basic rule here is: first check your pension situation, then invest in the short term.
Finding the right solution is not easy. In view of zero or low interest rates, there is little money for money right now. Especially if it is “only” lying around in accounts.
That’s why investments are worthwhile – also because the money is then “gone” and you can no longer spend it.
But above all because you are making provisions for later.
Around half of the Swiss have a 3rd pillar and around a fifth of the Swiss invest in the stock market.
There are many pension and investment products.
To find out what you need to look for, it’s best to proceed step by step:
First: Check mandatory pension provision
If you have gaps in your AHV, can you make additional contributions to your pension fund?
You can see from your insurer’s statements whether you can make additional payments.
Why is this worthwhile?
Because of the tax, you are not taxed on payments made.
What are the limits?
The returns are low, but safe.
If you have no better plans for your money, at least you won’t lose anything and will benefit in old age. We have compiled a list of considerations that are worth making when paying (more) into your pension fund.
Secondly: Check voluntary provision
Do you already have a 3rd pillar?
If not, then it’s about time.
The 3rd pillar in Switzerland has tax advantages and you can also withdraw your assets to buy your own home.
Limits: Many 3rd pillar accounts currently no longer pay any interest at all, so if you don’t “just” want security for your money, go for funds. We have compared the providers and put together the best 3rd pillar investments.
Thirdly: Check investments on the financial market
Shares or funds?
The latter involve less risk and are therefore the obvious choice for beginners.
In addition to performance, you should also keep an eye on the fees.
After all, money costs money.
You will be charged fees for investing in the stock market and these vary considerably depending on the provider.
This can be particularly significant for smaller investments. Automated ETFs (exchange-traded funds) are a cheaper alternative to traditional, actively managed funds. You can create a diversified portfolio with just a few ETFs. You can find out how to invest in ETFs in our guide,so what’s right for you? Longer-term provision or an investment with a shorter horizon?
