Zurich PaymentPlan: with funds or guarantee

To answer this question, you need to compare expected annual income and expenses. The more your expenses exceed your income, the faster your savings will be depleted. As a basic rule, you can divide your assets by your financial needs per year: For example, if you have assets of 100,000 Swiss francs and spend 10,000 francs of this every year, the assets will be used up in about 10 years. The money will of course last longer if you achieve a positive return on your assets through good investments.

In general, it is worth planning your income and expenditure situation in detail with a specialist, even for the time after retirement. This will help you avoid nasty surprises.

Capital consumption means that you use up the capital you have saved after retirement. The more your expenses exceed your income, the faster your capital will be consumed. If you invest your money wisely, for example in a PaymentPlan, you will usually earn a return and your capital will last longer.

With a PaymentPlan, you as an investor can have regular amounts paid out from your capital. These payments can complement the benefits from the OASI and pension fund, increasing your monthly available income.

With a PaymentPlan, customers receive regular payments for a defined period of time. Depending on the investment returns, the payment term may be extended or shortened, as payments are made until the capital has been completely used up. Under the PaymentPlan with guarantee, your money is invested and managed by Zurich, ensuring that the guaranteed payments can be paid out over the desired period.

With a pension , customers receive lifelong payments. The regular distributions or payments are, however, usually lower because of this. An optimized solution could be a PaymentPlan combined with an annuity, which covers the longevity risk.

In general, all Swiss residents can take out a PaymentPlan. Such a plan is of particular interest for people between the ages of 50 and 65 who want to achieve financial freedom after retirement. Depending on the term and your age, taking out a PaymentPlan with guarantee can also offer you tax advantages.

This is only possible under the PaymentPlan with funds: Here, you can make additional deposits and thus increase the capital in the PaymentPlan. Under a PaymentPlan with guarantee, an additional contract is necessary.

You can choose between an annual, semi-annual, quarterly or monthly distribution.

• People between the ages of 50 and 65 who want to improve their retirement provision.
• People who want to reduce their tax burden in old age.
• In addition, under certain circumstances, people who are considering a capital withdrawal from their pension fund assets. However, in this case a detailed consultation and clarification of the financial situation are urgently required.

Zurich Invest Ltd is the company behind the PaymentPlan with funds: It manages more than 40 billion Swiss francs and, as a fund management company, is subject to supervision by the Swiss Financial Market Supervisory Authority (FINMA).

Assets are invested as part of an asset management mandate in selected funds managed by professionals. For PaymentPlans with immediate payouts, an amount equal to three annual withdrawals must be deposited in an account. This ensures payments can be made during the first three years without having to sell fund assets. 

Under the PaymentPlan with guarantee, your money is invested in the tied assets of Zurich Life Insurance Company Ltd. The Swiss Financial Market Supervisory Authority (FINMA) regularly checks the tied assets. Zurich is therefore always able to fully meet its financial obligations arising from an insured event – this means that the payment is guaranteed.

With a PaymentPlan with funds, you enjoy tax advantages compared with traditional life annuities: The regular withdrawals from your capital are tax-free. You only have to pay tax on interest and dividend income during the term of the PaymentPlan. 

The PaymentPlan with guarantee is an insurance solution. Here, stamp duty is payable when the plan is taken out. The payments are subject to wealth tax and interest rate tax. If certain criteria are met, the profit from the deferral period is tax free.

• With a single investment, you will receive regular distributions. 
• Zurich Invest Ltd invests your money professionally and selects independent fund managers according to the "best-in-class" approach.
• You can take out a PaymentPlan for two people. The PaymentPlan will then continue if one person dies.
• You choose the investment strategy that fits you. 
• Thanks to active asset management, you have attractive return opportunities. 
• Payment of the available capital is possible at any time.

• You can pay in additional amounts during the term and also adjust the amount and payment term as needed.

• Security strategy: The focus here is on stability, the investment risk is limited and so are the opportunities for returns.
• Balanced strategy: This offers better return opportunities combined with a somewhat higher investment risk.
• Growth strategy: The focus here is on the long-term growth of the assets. This strategy is suitable for risk-tolerant investors with a long investment horizon.

Yes, you can adjust your investment strategy if necessary. To do so, simply contact your personal adviser.