Information and frequently asked questions about old-age pensions
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- Your investment secures you a guaranteed additional pension for life.
- You determine the investment amount as well as when your retirement pension for life begins.
- You delegate the investment risks to Zurich Life Insurance Company Ltd, which takes the entrusted capital and invests it with its tied assets.
- You will receive a contractually guaranteed, lifelong retirement pension.
- Additional cover is possible, for your life partner for example, to continue the lifelong pension with a joint pension solution.
- If you want surviving dependents to receive a lump-sum benefit in the event of death, you can specify this with a beneficiary clause in your policy.
Good to know
- Minimum investment of CHF 100,000; minimum pension: CHF 500
- Annual, semi-annual, quarterly or monthly retirement payments possible
- As a life insurance company operating in Switzerland, Zurich Life Insurance Company Ltd is obliged to secure the claims of policyholders (such as retirement pensions) in so-called tied assets.
No matter how long you live and how the capital markets develop, with a lifelong pension you are protected.
- At the start of the pension, the capital you provided is converted into a guaranteed pension for life.
- You can tailor your pension solution in accordance with your needs. You decide when you draw your pension and how you finance it.
- You can also take out a retirement pension for a partner: The pension is paid out as long as at least one of the two partners is still alive.
- In addition to your guaranteed pension, you benefit from a participation in surpluses. These are redefined annually and depend on the returns from the investments as well as the pattern of risks and costs.
What is important to you?
- You want a guaranteed additional income.
- You want to maintain your usual standard of living after your retirement.
- You want to have financial security at all times, no matter how old you get and how the capital markets develop.
The ideal solution from Zurich to secure an pension for life
- A pension that starts immediately and is financed with a single premium.
- A deferred pension that is financed either with regular premiums or a single premium.
- The guaranteed pension payments continue for as long as you or the co-insured partner live. Cover in the event of death can also be included for additional surviving dependents.
What is a private retirement pension/life annuity?
A retirement pension is a kind of insurance: Capital is paid in to finance a lifelong pension. The payments are guaranteed - even if the insured person lives to be 100 or even older.
For whom is a life annuity interesting?
A retirement pension is interesting for you if you want to receive a reliable, guaranteed income throughout your life - no matter how long you live. We will be happy to advise you in a personal meeting.
How are private retirement pensions taxed?
Only 40% of the retirement pension is taxed as income at a flat rate - this is federal tax and is due in all cantons. In contrast to this, the pension from the restricted pension plan 3a and the pension from the 2nd pillar pension fund are taxed at 100%.
On January 1, 2025, an important change in tax law will come into effect: Currently, private retirement pensions are still taxed at a flat rate of 40%; in the future, they will be taxed at a lower rate. We would be happy to show you in a consultation what this improvement means for you in concrete terms.
What is the difference between the retirement pension from the pension fund and a private retirement pension?
Both the pension fund pension and the private retirement pension are calculated by converting the available capital into an annuity on a reference date. In the case of the pension fund, the conversion is based on a fixed conversion rate. With a private retirement pension, on the other hand, an individual annuity rate is applied, which depends on the age of entry into the insurance and the gender of the insured person. Other factors influencing the private retirement pension include the decision for or against a repayment of the remaining capital for the surviving dependents, as well as the question of whether the pension is paid out for life for one or two persons.
In the case of a private retirement pension "for two lives", a pension can be co-insured to the same extent for a second person. This second person can be chosen freely . In contrast, the pension fund pension only provides for the payment of a spouse's or partner's pension in the event of death. And this widow's or widower's pension is reduced to 60% of the original pension.
If you opt for a pension from the pension fund, you will no longer have access to the capital. In the case of a private pension, however, it can be surrendered at any time.
There are also differences in taxation: The pension fund pension is taxed completely as income when it is paid out, whereas the private retirement pension is taxed at a reduced rate, currently 40%.
On January 1, 2025, an important change in tax law will come into effect: Currently, private retirement pensions are still taxed at a flat rate of 40%; in the future, they will be taxed at a lower rate. We would be happy to show you in a consultation what this improvement means for you in concrete terms.
What is the difference between a private retirement pension and a payment plan?
A payment plan from an investment fund custody account:
A payment plan is limited in duration and ends when the investment amount is used up. The duration also depends on the performance of the fund investment, because the savings balance is invested in a fund at a bank.
A payment plan with contractually guaranteed installments and duration:
A payment rate is contractually guaranteed for the term of the payment plan. The plan ends after the contract expires, as a payout plan is limited to a specific period of time.
Private retirement pension with contractually guaranteed annuity, as long as you live:
The savings balance is invested as a single premium in a life insurance policy. From this, a private retirement pension with a guaranteed amount is paid out until you die. In the case of a private old-age pension "for two lives", the same pension continues to be paid out, even if one of the two persons dies.
What kinds of retirement pensions are there?
Immediate pension
With this type, you make a single premium contribution with capital you already have, for example from your own assets, other pension planning solutions or an inheritance. The pension payments start immediately and are paid out for as long as the insured person lives. You can also take out this insurance for two people and therefore provide financial protection for your surviving partner.
Deferred retirement pension
The pension payment will only start on the date you specify. It is either financed with periodical premiums or a single premium. Here, too, you can cover two people with one policy.
What are the arguments in favor of planning security for life?
In Switzerland, women and men tend to be living longer. You, too, may well even live to celebrate your 100th birthday. With time-limited payment plans or self-invested capital, there is always the risk that the money will not last until the end of your life. A private retirement pension offers you the security of a guaranteed income for as long as you live - no ifs or buts.
How secure are my entitlements to a lifelong retirement pension?
A private retirement pension is a life insurance policy. And in the case of life insurance policies, Zurich is obliged under the Insurance Supervision Act to secure the claims of policyholders in so-called tied assets (Art.17 para.1 IOA). These assets serve exclusively to cover/secure the insurance assets or insurance entitlements and would not form part of the bankrupt's estate, even in the very unlikely event of bankruptcy (Art.55 IOA). FINMA reviews these tied assets on an ongoing basis. Zurich Life Insurance Company Ltd is therefore in a position to meet its financial obligations at all times. In short: Your claims are very safe.
