Amedia Fiduciary SA is pleased to have signed a cooperation agreement with the Fondation Lemania de Libre Passage (FLLP) and La Fondation Romandie en Faveur de la Prévoyance Individuelle Liée (FRPI). These new foundations focus exclusively on individual pensions and the supplementary portions of the 2nd and 3rd pilars.
Following my own experience moving Swiss employers, and the required opening of a “libre passage” account to hold my “2ème pilier” pension pot, it became obvious that there was scope and a need for other “players” in the French speaking part of Switzerland.
Basically there are 3 pillars which are designed to ensure retirement revenue.
Pilar 1 is called AVS which covers the vital minimum. Pilar 2 is called LPP and is a professional savings plan. This, in turn, is divided into Obligatory and Supplementary portions which are meant to maintain the standard of living to which one is accustomed once retired. Pilar 3 is the individual savings plan and can be called 3a (lie) or 3b (libre). The individual savings Pilar is designed to supplement the LPP and AVS.
The big issue facing Swiss employees is the diminishing interest rates around the world and how they are going to ensure a reasonable return on their individual pension pot… while our “hands are tied” on the obligatory portions, Swiss are not necessarily aware that up to 60% of their fortune is invested in Pension plans and a significant portion can be managed actively.
Currently the technical return on Pension pot assets is estimated to be 1.75% in 2018, that compares with a rate of 4.5% in 2007. At the same time, one would need to invest in a 10 Year Swiss Government bond to see a return of just.15% PA as of recent. In summery, Pensions are paying out more to retired people than they are collecting or earning… so how can an individual have a chance to preserve their own capital, let alone build on their capital with a chance to enjoy their retirement years.
One way may be by taking additional responsibility for your own future. At Amedia we are available to accompany you with next steps.
From the analysis of your personal circumstances through the opening of an account Libre Passage with our partner bank Gonet, we will work to complete a plan. You will be able to make a selection from managed portfolios by the governed by the law on institutional savings type OPP2.
Imagine your pension savings, invested in line with your desired risk and return profile, open in an established institution, actually working to ensure your retirement savings plan.
Looking forward to hearing from you
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