The different versions in detail
1. Return opportunities
With the bank
If you save for the future in a traditional 3a savings account you currently have little opportunity to achieve any returns, as the interest rates are still extremely low. When saving with a Pillar 3a fund solution, clients can seize the opportunity of good returns and achieve price gains from equities or bonds, but they do bear a price risk.
With the insurer (with the SmartFlex pension plan)
The SmartFlex pension plan combines the security of a pension account with the opportunities of an equity investment, with which the capital can be systematically increased. The invested capital can be split into a security-oriented capital element and a return-oriented capital element, and flexibly restructured. Thanks to investment in equities, the return-oriented capital not only offers attractive return opportunities – the investment profile can also be selected to suit your own preferences at any time without additional costs. And unlike a bank solution, there are no trading fees.
2. Security of investments in the event of bankruptcy
With the bank
Together with the vested benefits accounts, the deposits in the 3a area are privileged up to CHF 100,000 in the event of bankruptcy. The Pillar 3a fund solutions of the banks, on the other hand, are not included in their bankruptcy assets and are therefore not affected.
With the insurer (with the SmartFlex pension plan)
The deposits in the security-oriented capital are 100 % legally secured in the tied assets of AXA. Unlike with a bank, there is no upper limit of CHF 100,000. The deposits in the return-oriented capital of the tied assets are in turn secured to the extent of the market value of the equity shares at the time.
3. Susceptibility to financial market fluctuations
With the bank
Clients who rely on a bank savings account to save for their old age are indeed not exposed to market fluctuations, but nor can they benefit from stock market gains. Those who want to build up their private retirement provisions with Pillar 3a, relying on a bank’s Pillar 3a fund solution, can benefit from equity gains but do also bear a certain price loss risk.
With the insurer (with the SmartFlex pension plan)
While the deposits in security-oriented capital in the case of the SmartFlex pension plan are not exposed to any market fluctuations, value fluctuations are to be expected in the case of the return-oriented capital invested in the equity market. However, clients have the opportunity to take an active part in controlling their investment risks with various clever security options, such as hedging the returns, process management or manual restructuring.
4. Insurance coverage
With the bank
The pension solutions of banks, such as a savings account or a 3a fund solution, include no additional insurance protection, for example covering financial risks in the event of death or incapacity to work.
With the insurer (with the SmartFlex pension plan)
If you want to build up your retirement provisions and at the same time insure against risks such as death or incapacity to work, the SmartFlex pension plan is just right for you. Another factor in favor of this form of retirement provision is that in the event of long-term inability to work, the insured are exempt from paying premiums – AXA pays the premium. Your retirement capital continues to accumulate and your coverage remains in effect.
5. Fees
With the bank
Whereas saving for your retirement with a bank account primarily incurs costs for account management, retirement provision with a 3a fund solution from the bank may incur custody account fees, fund costs, as well as issue and redemption commissions on fund trading.
With the insurer (with the SmartFlex pension plan)
With the SmartFlex pension plan there are contractual and investment costs.
6. Payment obligations
With the bank
If you decide to plan your private pension with a banking product you do not incur any payment obligations but you do run the risk that irregular deposits may jeopardize the rapid and sustainable accumulation of retirement savings.
With the insurer (with the SmartFlex pension plan)
If you want to save for your old age, build up a private pension and prepare for retirement, and you choose the SmartFlex pension plan, you will benefit from a systematic savings model thanks to firmly agreed premium payments with a fixed contract period. This model also offers flexibility. For example, it is possible to pay in varying amounts in the context of Pillar 3a and to suspend payments temporarily.
7. Redemption
With the bank
If you want to accumulate funds for retirement with a bank savings account and withdraw cash from it again, in most cases you will have to pay a closure fee.
With the insurer (with the SmartFlex pension plan)
When accumulating pension provision with the SmartFlex pension plan, the guaranteed redemption value is calculated from the accumulated contractual assets, minus the due costs.