Asset optimization Let your money work for you

When it comes to your assets, you can spend them, put them to one side, or actively manage them. To help you achieve your retirement goals, let your money work for you.

Optimal asset allocation is the key to the best possible retirement provision:

  1. Hold sufficient liquid funds – do you have the right amount of liquid funds?
  2. Optimize your retirement savings – are you using all the available options?
  3. Invest your free assets optimally – do you know which is the best solution for you?

Optimal asset allocation

The optimal allocation of assets between liquid funds, retirement savings and free assets

Source: UBS

1. Hold sufficient liquid funds

To cover your living costs and expenditure planned for the medium term (e.g. a vacation or new car) you need liquid funds. You should also think about maintaining a reserve for unforeseen events.

Plan reserves into your budget and invest your excess liquid funds.

Your flexibility for savings and retirement provision

Allocation of liquid funds in a budget with a contingency reserve, a consumption reserve, and funds for savings and retirement provision.

Source: UBS

2. Optimize your retirement savings

Any liquid funds that you don’t need in the short or medium term can be used to enhance your retirement savings.

Optimization of pillar 3a

When paying into your restricted pillar 3a pension plan, you benefit from a preferential rate of interest and tax advantages. What’s more, UBS Vitainvest investment solutions can offer greater earnings potential than a savings account – with no issuing or redemption commissions.

If you pay savings into two pillar 3a accounts, you can withdraw the capital later on a staggered basis and thus optimize your taxes.

Pension fund buy-in

Voluntary purchases into your pension fund increase your benefits. As a rule, these payments can be deducted from your taxable income. However, the capital may not be withdrawn for at least three years after the voluntary purchase. Otherwise, you lose the tax advantage granted on making the payment.

Have you made optimal use of your options? If you’d like to optimize your retirement savings, we would be happy to help you.

3. Invest your free assets optimally

Individual private pension plans are becoming increasingly important. Your AHV pension and occupational pension scheme will barely allow you to maintain your accustomed standard of living. In addition to pillar 3a, pillar 3b provides other options for your retirement planning: If you have exhausted the maximum amount for your restricted pillar 3a pension plan, you can invest in investment products under an unrestricted pension plan. This may include an individual investment plan or real estate.

Your personal situation is the key factor. A couple wanting to start a family has very different needs compared to a young engineer in the process of launching a start-up company, or a teacher at the end of her professional career.

Analyze your investment needs together with your client advisor. We will be happy also to help you set up your individual solution.

Issues relating to your retirement