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A Trend with Consequences

More and more Swiss are choosing a one-time capital payout from their pension fund instead of a lifelong annuity. According to recent figures, more than half of men and a third of women now withdraw their retirement assets as capital.

Flexibility vs. Security

The reasons for this shift are varied: capital offers more flexibility, allows investments or debt reduction – but also carries risks. Those who invest the money poorly or spend it too quickly may face retirement without financial security.

Tax Incentives as a Driver

Another factor: the one-time capital payout is often tax-advantaged. In cantons with low capital withdrawal taxation, this option can be financially attractive – especially for high earners with large pension assets.

The Downside of Freedom

But experts warn: many underestimate the challenges associated with capital withdrawal. Self-managed wealth, market volatility, and potential underfunding in old age are real risks.

finaro Recommends Individual Analysis

The choice between annuity and capital should not be made in general terms. finaro recommends an individual analysis that considers lifestyle, security needs, tax situation, and family circumstances.

Our experts help you choose the best strategy for your retirement – with foresight and security.

Source: nzz.ch