If, in addition to the attractive tax advantages of our retirement savings account, would also like to achieve a better return, you can invest your retirement savings balance in securities.
Private individuals with a BKB Savings-3 Account or a Vested Benefits Account can invest their retirement funds in securities.
How does Investment Savings Work?
You Pillar 3a and Vested Benefits Account retirement assets are invested in specially designated investment funds of the Swisscanto Investment Foundation. The risks that are always associated with the prospect of a higher rate of return are substantially reduced through a broad diversification of the investments. The BVG-compliant investments of the Swisscanto Investment Foundation strive for the highest possible return with the smallest possible risk. However, as seen in the recent past, market-driven losses must also be taken into account. Ongoing earnings from these funds are not paid out, but instead reinvested in the respective investment funds (earnings retention).
How long should you invest your retirement savings?
The investment horizon should be at least 8 years if you choose an investment strategy with a 45 to 50% equity component. Funds with an allocation strategy of 10 to 30% in stocks are suitable for an investment horizon of 5 to 8 years.
Are there different investment funds for different individual requirements?
Yes, depending on the investment horizon and your personal risk tolerance level, you can choose any of the following investment funds:
BVG 3 Portfolio 10
With the asset group BVG 3 Portfolio 10 you invest your assets conservatively. This investment group strives for an allocation of approx. 75% in bonds and emphasizes annual interest earnings. The equity component is less than 10%.
BVG 3 Portfolio 25
The asset group BVG 3 Portfolio 25 pursues a moderate strategy with approx. 65% in bonds and roughly 28% in stocks.
BVG 3 Portfolio 45
The asset group BVG 3 Portfolio 45 makes maximum use of the statutory framework. The portion invested in stocks is approx. 45%. This group is suitable primarily for investors who are willing to accept some risk.
BVG 3 Oeko 45
The asset group BVG 3 Oeko 45 invests only in companies and debtors who in comparison to their competitors are among the most progressive with respect to environmental protection. The strategy and the risk are similar to those of BVG 3 Portfolio 45.
BVG 3 Life Cycle 2015
BVG 3 Life Cycle 2020
BVG 3 Life Cycle 2025
These are investment funds with a target date. In other words, up to ten years before the target date, the strategic equity component is 45%. Subsequently and until the target date is reached, this component is reduced to 0% and the investment in bonds and real estate is increased. Thus, higher returns are achieved in the early stages at greater risk, and towards the end of the investment term more emphasis is placed on protection of capital.