Women’s Wealth in figures – retirement Retirement: saving early pays off

According to the UBS Women’s Wealth Study 2021, most women surveyed are worried about their financial security in old age. More specifically, for every ten women surveyed, seven said they wish that they had started saving for their retirement when they were younger.

Today, pension gaps tend to be the rule rather than the exception. There can be many reasons for this. For example, women are three times more likely than men to work part-time due to childcare or other family commitments. A pension gap can also arise due to parental leave, a period spent living abroad, frequent job changes or working several jobs at the same time, or because of accident or ill health.

Only a few of the women surveyed are dealing effectively with long-term financial topics such as building wealth, even though women in particular are affected by pension gaps. The good news is that you can close these gaps by planning your retirement early.

If you work part-time or have taken a long career break, it is worth checking whether you have any contribution gaps in pillar 1 (AHV) or pillar 2 (pension fund). Retroactive AHV contributions are possible up to five years after they were originally due. In addition, private pension fund purchases are particularly worthwhile in the years leading up to retirement and also offer tax benefits.

In the Swiss pension system, benefits paid out by the AHV and your pension fund are, on average, equivalent to 60 to 70 percent of your final salary. To maintain your current living standard after you retire, you’ll need around 90 percent of this amount. It is everyone’s responsibility to make up the difference of 20 to 30 percent.

This is why it is worthwhile investing in a private pension (pillar 3a). Private pension contributions also qualify for tax relief and should if possible be continued, even if you start working part-time or take a career break.

Alongside a conventional pillar 3a retirement account women investors can also boost their private pensions with UBS Vitainvest sustainable investment funds while also doing something to help society and the environment. It is worth building up your wealth and providing for your retirement while you are still young.