The growing trend of withdrawing savings capital from occupational pension plans instead of relying on a pension is becoming increasingly popular. With many Swiss pension funds reducing their pensions in recent years, concerns about retirees not having enough money in old age have led to initiatives such as the introduction of a 13th AHV pension by the Swiss Federation of Trade Unions.
A new study by think tank Avenir Suisse has revealed that while the average total benefits from occupational pensions have only slightly decreased between 2015 and 2022, this is due to an increase in the number of retirees withdrawing their pension fund capital. This trend has led to lower pensions as the withdrawn money is no longer included in the pension calculations.
The study also found that women’s benefits have actually increased, while men’s benefits have decreased due to the higher participation of women in the labor market. Financial advisors warn that retirees must be aware of the risks associated with managing their own assets and seek correct advice before making financial decisions. Some advisors may have a vested interest in encouraging retirees to withdraw capital from their pension funds, potentially putting retirees’ financial security at risk.
It is important for retirees to carefully consider their financial situation and calculate their expected cost of living in retirement before making any decisions about withdrawing capital from their pension fund. Only after ensuring that their financial needs are met should they consider other options for managing their assets.
Overall, it is clear that there are many factors at play when it comes to retirement planning and managing one’s savings. As such, it is crucial for individuals to seek professional advice and take a comprehensive approach to ensure they are making informed decisions about their financial future.
