Why a 3rd pillar?
We have heard about 3th Pillar A or B over and over again. But what pushes the 60% of active people to adopt such solutions?
Our experience allows us to determine the triggers for the decision to start a 3th pillar in banking or insurance.
Here are the 5 reasons why people take action.
1. Take advantage of the unique tax advantage offered by the Confederation
The most sought after benefit comes as no surprise. It is taxation that attracts more than 80% of people in 3rd pillars.
Like the contributions from the LPP pension fund, the contribution from 3rd pillar A is deductible from taxable income and therefore generates a significant tax return.
The State has put in place this system in order to promote individual responsibility and to benefit persons wishing to complete the 1st and 2nd pillars on their own initiative.
Some cantons go even further by granting tax advantages on 3rd pillars B and on certain annuities, such as certain annuities or life annuities.
2. Improve your future retirement or plan for early retirement
The dream of the majority goes against the current societal reality. The trend is towards always working later in order to “counteract” the increasing life expectancy.
Our desire is undoubtedly to enjoy a well-deserved retirement as soon as possible.
When we see the evolution of the first two pillars, there is no doubt about the need to take private steps in order to achieve our objective.
3. Covering your family against the risks of life
Family is the most important value for us. The will to protect it is very powerful. Whether from a physical, psychological or financial point of view, this protection is a reflex for anyone who wants to protect their loved ones.
It is always difficult to talk about life incidents, but it is necessary in order to anticipate the various risks such as incapacity for work or even worse, death.
Leaving your loved ones in good conditions in the event of a problem is one of the advantages of the 3rd pillar in insurance.
4. Carry out major projects
The almost forced savings required by a 3rd pillar (especially in insurance) allows us to build up assets and take advantage of them.
Whether it's a gap year with a world tour project or a real estate purchase, both situations enrich our lives. The project of becoming your own boss is also one of the most frequent reasons for withdrawing our accumulated 3rd pillar assets (just like our LPP capital).
The 3rd pillar unquestionably helps us to live our dreams. Saving regularly while ensuring your back, with the help of the Confederation through tax advantages, is an excellent way to increase your standard of living, not only in retirement, but also before.
5. Start early!
We can't say it enough. Don't waste any more time!
A 3rd pillar is more beneficial the sooner we do it. We are healthy at first and can therefore be easily accepted when concluding. In addition, the cost of risk insurance is cheaper the younger we are.
Importantly, the longer the term, the higher the earnings (compound interest). Time is running out in our favor and the tax savings achieved are definitely a given.
Our specialists are there to guide you and help you take the plunge!
