Pension planning Sustainable investment in retirement savings

Boost your private retirement savings and do something for society and the environment: combine both with our sustainable UBS Vitainvest Investment Funds.

by UBS Insights 02 Sep 2020

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The world’s growing population is leading to a consumption of resources that the earth cannot cope with in the long term. In many places, people still have to live in inadequate conditions. Awareness of this has risen, and the need to think and act sustainably is now undisputed – even in the investment business.

At the same time, the Swiss pension system is facing major challenges. The working population can no longer assume that they will be able to maintain their accustomed standard of living after retirement with AHV and pension fund income alone. Private savings benefits under the pillar 3a scheme are more crucial than ever. With our sustainable UBS Vitainvest Investment Funds, you can boost your personal pension planning and invest your retirement capital sustainably.

Sustainable investing: now a mainstream issue

Not long ago, sustainable investing was still a niche phenomenon. Today the relevant approaches are well established. What’s changed?

Firstly, the environment, society and corporate governance, often referred to by the abbreviation ESG (Environmental, Social, Governance), have become more prominent. Secondly, it has been shown that ESG-compliant systems are also financially convincing. Companies that act sustainably are characterized by reliable planning and a long-term strategic focus. On the risk side, this makes them more resilient to shocks and better able to withstand economic downturns. They also often prove to be better equipped for future challenges, which is reflected in better performance.

Taking ESG factors into account requires a long-term approach. It is sometimes a matter of preserving the basis of life for future generations. This makes sustainable investing particularly suitable for pension planning: pension investments, like the effects of sustainable investing, are by definition long term.

UBS Vitainvest Investment Funds at a glance

Would you like to boost your private retirement savings and do something positive for the environment and society at the same time? We show you how.

Sustainable savings in pillar 3a

The first and second pillars are increasingly underfunded due to the progressive aging of our society and the persistent low interest rate environment. This makes pillar 3 all the more important. It is intended for private savings at the individual's own responsibility. Up to a certain amount per year, these are tax exempt (known as pillar 3a). UBS Vitainvest Investment Funds offer the opportunity to invest Pillar 3a assets in securities in order to benefit from developments on the financial markets. In order to take into account the different needs and preferences of savers, several versions of these investment funds are available with different profiles and geographical characteristics. The profiles differ mainly in the equity component, whereby a higher equity ratio is generally associated with higher returns, but also with higher risk.

All UBS Vitainvest Investment Funds have now been further developed to meet the strict ESG criteria defined by UBS. With the repositioning of the investment funds pension savers are given the opportunity to make sustainable provision for the future, thereby combining the advantages of the well-known UBS Vitainvest Investment Funds with the benefits of sustainable investments. This represents another step towards promoting product innovation and the transition to a more sustainable society.