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How to boost your pension provision with equity investments
If you’re a manager, self-employed or an entrepreneur, organising your retirement is no trivial matter. However, there are a number of tools to exploit the potential of your assets throughout your life and ensure the best possible transition to retirement. In Switzerland, the legislative framework makes it possible for you to invest your assets, enhance your supplementary pension insurance and limit your tax burden.
At Lombard Odier, we have developed our expertise in this area, enabling us to offer our customers the best solutions for their needs. For over 10 years, we have offered tailor-made management of vested benefit assets1, highly-performing2, non-mandatory complementary pension strategies (the ‘bel étage’ buy-in plan and 1e flexible-strategy senior management plans), and provided bespoke advice on planning Pillar 2 supplementary pension buy-ins.
Read also: Tax deductions: how to optimise Pillar 2 buybacks
This product is a perfect fit for our comprehensive, multi-portfolio approach to tax-efficient management (TEM), as both the pension income and assets aren’t taxed. So what does this mean? This system of consolidation and integrated management enables us to rethink and optimise your retirement plan using an approach that comprises all of your assets. High-return financial assets are allocated to your pension account and low-return assets with the potential for capital appreciation are allocated to your private account. Consequently, you benefit from better performance without any increase in risk.
Find out more about our TEM approach here
Ever-greater flexibility with our new strategy - My Private Pension Dynamic
Early in 2019, we launched three investment strategies across three funds with each strategy being tied to a risk profile in line with the regulatory requirements of OPP23. These strategies reflect their underlying risk profiles, namely: “Defensive” (20% equities), “Medium” (35% equities) and “Extension” (50% equities)4.
In response to our clients’ needs, we are pleased to announce the launch of our new strategy, “My Private Pension Dynamic”. This strategy can include up to 75% equities compared with 50% previously and it offers many pension fund members flexibility and diversification for their pension fund assets.
Read also: Preparing for my retirement – where should I begin?
In reality, given the low return on real-estate securities and bonds denominated in Swiss francs, many customers are looking to take greater risks with their pension fund assets, or, more broadly, with their assets as a whole.
“Thanks to the growth in assets and performance, and in view of their very encouraging growth prospects, Lombard Odier now has a set of LPP-compliant5 strategies to meet customer demand”, says Baris Unal, manager of My Private Pension.
Lombard Odier: a major player in pensions
For Lombard Odier, pensions aren’t just about building a portfolio. Our comprehensive and tailored analysis of your needs provides real added value in terms of advice, planning and management of your assets. No matter your age, be it 30 or 40, our strategies can enhance the overall performance of your assets while forming part of a long-term view. These strategies, which may span many years or even decades, make it possible to obtain rapid results and benefits after just a year.
Two years ago, we passed the symbolic threshold of CHF 1 billion in total pension assets managed by our Private Clients specialists (vested benefit assets, Pillar 2 and 3 pension assets, etc.). Today, this amount has risen to more than CHF 1.8 billion and is expected to continue to enjoy strong growth.
Our pension products and services are proving particularly successful among the self-employed, entrepreneurs and senior managers, who appreciate our knowledge and approach to private banking that comes complete with a tailored and comprehensive asset management service. Furthermore, for every pension plan, we are transparent in terms of investment composition and performance reporting via our MyLO platform. We have also forged partnerships with several leading pension institutions, enabling us to offer our clients a comprehensive range of products and services.
1 When you leave a company, you can recover your vested pension assets from that company’s pension fund. You then have two options available to you: to transfer those assets to a new pension fund or to have them managed by a specific pension foundation and/or a bank. More information: https://www.swissstaffing-lpp.ch/fr/assures/faq/generalites/compte_libre_passage.php
2 Membership of a non-mandatory supplementary occupational pension plan increases the regular contributions to be paid by the employer and the employee. From a tax point of view, the respective ordinary contributions made by the employer and the employee are tax deductible throughout the entire pension formation phase.
3 Ordinance on Occupational Old Age, Survivors’ and Disability Pension Provision (OPP2).
4 The percentages may vary depending on market conditions.
5 Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (LPP)
Important information
This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.
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