How Anita and Peter Wenger reach their savings target.
Anita and Peter Wenger are 27 and 28 years old, and have just got married. The Wengers would like to use their savings to maximize their capital so they can start a family and achieve their dream of owning their own home. At the same time, they want their assets to grow steadily.
The Wengers and their client advisor at UBS have worked out that they can save CHF 20,000 a year. They can also invest CHF 10,000 of what they've already put aside in a savings and retirement plan.
|Available funds for savings and retirement provision|
|Potential annual savings||CHF 20,000|
|Surplus liquidity from total assets for savings and retirement provision||CHF 10,000|
Anita and Peter Wenger discuss the various options with their client advisor. Do they want to make payments into their pension fund and thus increase their benefits and reduce their tax burden? Do they wish to make Pillar 3a contributions? Or perhaps use individual investment options to invest in an unrestricted retirement plan under Pillar 3b?
The Wengers decide on a mix of options:
Saving with Pillar 3a
- They will pay CHF 5,000 a year into UBS Fisca accounts.
- They will invest a further CHF 5,000 in UBS Vitainvest 25, a Pillar 3a investment instrument with a 25% equity weighting.
By paying into Pillar 3a, they can reduce their tax burden. This first savings portion ensures stable capital growth.
Saving with Pillar 3b unrestricted retirement provision
- The Wengers will put their second savings tranche of CHF 10,000 a year into an investment fund with a 25% equity weighting.
- They also make a one-off deposit of CHF 10,000 in liquid funds into an investment fund with a 25% equity weighting.
By opting for this solution, the Wengers are aiming to increase the return on their investment. Although they know that the prices of securities can fluctuate substantially, they proceed on the basis that the fluctuations will balance out over the years.
UBS Fisca accounts, annual deposit
|UBS Vitainvest 25, annual deposit||CHF 5,000|
|Unrestricted pension Pillar 3b|
|Investment fund, annual deposit||CHF 10,000|
|Investment fund, single deposit||CHF 10,000|
Asset growth with interest effect
Potential asset growth of the made-to-measure retirement savings plan
Values rounded to CHF 1,000. For illustration purposes only.
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