Tag: retirement

Pensions

When Should You Start Saving For Retirement?

Post author By Charles Mills
Post date November 21, 2023
No Comments on When Should You Start Saving For Retirement?

When Should You Start Saving For Retirement?

“You don’t have to be great to start, but you have to start to be great” ― Zig Ziglar

3 min read

When Should You Start Saving For Retirement?

“You don’t have to be great to start, but you have to start to be great” ― Zig Ziglar

3 min read

Retirement planning is a marathon, not a sprint. The earlier you start saving, the more time your money has to grow. However, many people grapple with the question of when to start their retirement savings journey. Read on to unravel the critical considerations, benefits, and implications of starting early on the path to retirement security.

The Significance of Early Retirement Saving

Commencing retirement savings at a young age unlocks a multitude of advantages. You are able to benefit from things such as the power of compounding, which shows how even modest contributions, when invested early, can grow into substantial assets over time. The longer the investment horizon, (time invested), the lesser the financial strain to amass a sufficient retirement fund, paving the way for a comfortable and stress-free retirement lifestyle.

Understanding the Time Value of Money

Time is the unsung hero of retirement planning. The time value of money proves how every bit of money saved today has the potential to grow significantly due to compound interest and investment returns. By capitalising on the principle of the time value of money, you can harness the benefit of exponential growth, positioning yourself for a financially secure retirement.

Impact of Delayed Retirement Savings

Delaying your retirement savings can have negative repercussions. From the pitfalls of procrastination to the monetary cost incurred when you postpone starting your retirement plans, realising the increased savings burden down the line and the compromised retirement lifestyle that often accompanies delaying savings is important. Consider the tangible impact of delaying your financial preparations and whether or not this will mean you have to save more in your later years due to any shortcomings.

Balancing Other Financial Priorities

Whilst starting early is crucial, you also need to remember that life presents multiple financial obligations along your route to retirement. There is a balancing act between immediate financial needs and long-term retirement goals. Therefore, you should take a holistic financial approach that considers both short-term necessities and long-term aspirations.

It is also the sad truth that not everybody gets to retire. So, you should not necessarily sacrifice today’s comfort for a future that may not come. This is why it is important to balance putting money away until retirement, whilst still being able to enjoy the lifestyle you have.

Life Stages and Retirement Savings

Different life stages warrant distinct approaches to retirement savings. Those early in their career might save less than those in their mid to late careers or those even closer to retirement age.

For example, for those early in their career, consider leveraging any workplace schemes, budgeting wisely and perhaps opt for riskier investment strategies.

Those in the middle of their careers may wish to consider boosting their savings efforts such as increasing contributions to employer workplace schemes, seeing if your employer will match any increase, making any catch-up payments or start to figure out what their expenses may be in retirement.

Finally, should you be nearing retirement, make projections to see how long your current fund will last in retirement, consider a lower risk level, manage any final outstanding debts you can and assess your overall net retirement position so that you can fill any gaps where needed.

Of course, no matter what stage of life you are in, contacting a Patterson Mills Financial Adviser will enable you to have the best possible chance of achieving the retirement of your dreams.

A Retirement You Can Enjoy

The question of when to start saving for retirement isn’t just about age; it’s about the value of time, the power of compound interest, and the balance between present needs and future aspirations. By starting early and aligning your savings and investments with your life stage, you can lay a sturdy foundation for a worry-free retirement.

The best part of all, is that you are not alone. Patterson Mills are here to provide expert guidance and create a financial plan that can guide you to success. So, get in touch with us today and book your initial, no-cost and no-obligation meeting, you will be pleased that you did. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Please note that all information within this article has been prepared for informational purposes only. This article does not constitute financial, legal or tax advice. Always ensure you speak to a regulated Financial Adviser before making any financial decisions.

Tags financetips, financialadvice, financialadviser, financialplanning, retirement, saving

Pensions

Financial Independence: Retiring With Confidence

Post author By Charles Mills
Post date October 31, 2023
No Comments on Financial Independence: Retiring With Confidence

Financial Independence: Retiring With Confidence

“As in all successful ventures, the foundation of a good retirement is planning” ― Earl Nightingale

3 min read

Financial Independence: Retiring With Confidence

“As in all successful ventures, the foundation of a good retirement is planning” ― Earl Nightingale

3 min read

Achieving financial independence, retiring with confidence and even retiring early is a dream for many. This article explores the key principles and strategies for those looking to achieve financial independence for retirement or retire ahead of the traditional retirement age. Financial independence and early retirement can provide a life filled with leisure, travel, and personal pursuits, but it requires careful planning and a strong financial foundation.

What Is Financial Independence?

Firstly, what is ‘financial independence’ and why would you wish to achieve it?

Financial independence is a state where your passive income, such as investments and savings, can cover your living expenses, allowing you to enjoy life on your own terms. It’s the freedom to make choices without being constrained by financial concerns. For example, choosing when to work rather than going to work because you have to earn an income. This financial status is the precursor to early retirement, though they are not one and the same.

The Path to Financial Independence

Smart Financial Planning: Successful early retirement begins with smart financial planning. Start by setting clear, achievable financial goals and creating a roadmap to reach them. This includes budgeting, tracking expenses, and understanding your financial position.
Savings and Investments: Building a substantial nest egg is essential for early retirement. Popular strategies include the 4% rule, which suggests withdrawing 4% of your investments annually, and harnessing the power of compound interest. Consider various investment vehicles such as stocks, bonds, and real estate.
Debt Management: High-interest debt can be a roadblock on your path to financial independence. Focus on paying off high-interest loans, such as credit cards, and minimizing mortgages. A debt-free life can significantly enhance your financial independence journey.
Emergency Funds: To retire early, it’s crucial to have a robust emergency fund. This acts as a safety net for unforeseen expenses, preventing the need to dip into your retirement savings.

Challenges and Overcoming Them

Healthcare Costs: Healthcare expenses can be a significant concern. Secure comprehensive health insurance and plan for healthcare costs in your early retirement budget.
Market Volatility: Early retirees must be vigilant in managing their investments and must have a strategy to navigate market volatility. Diversification, asset allocation, and risk tolerance assessment are key components.
Inflation: Adjust your financial plans to accommodate the impact of inflation. Realise that over time, your expenses will increase, and your retirement income must keep pace.
Social Security and Pensions: Understand the role of Social Security and any pensions you may have in your early retirement. These can provide valuable, and in most cases essential, additional income streams.

Early Retirement: Unlocking a World of Possibilities, Freedom and Fulfillment

The dream of early retirement has captivated the imagination of many individuals seeking a life outside the traditional constraints of a 9-to-5 job. It’s about reclaiming your time, your freedom, and the ability to explore a world of possibilities. Early retirement signifies a transition from the daily grind to a life that you design on your own terms.

The benefits of early retirement extend far beyond escaping the daily commute. It’s about enjoying a life of freedom, fulfillment, and reduced stress. Early retirees have the luxury of pursuing their passions, spending quality time with loved ones, and engaging in activities that truly matter to them. This newfound freedom not only enhances overall quality of life but also fosters personal growth and self-fulfillment.

Confidence in Early Retirement

Achieving financial independence is not solely about money; it also entails managing the emotional and psychological aspects of early retirement. Finding a sense of purpose in retirement, staying mentally and physically active, and nurturing relationships are all important for a fulfilling life.

From Planning to Execution

Achieving early retirement and financial independence requires a well-thought-out plan and disciplined execution. From meticulous financial planning, smart investments, and debt management to building additional income streams, early retirees meticulously craft their path to financial independence. They understand the significance of savings, investments, and strategic career decisions in making this dream a reality.

No matter what others may say, it is possible, and Patterson Mills are here to make sure you have the best possible chance of a successful financial future. Get in touch with us today and book your initial, no-cost and no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Tags financetips, financialadvice, financialadviser, financialindependence, financialplanning, retirement

Opinion

Theatre of Finance: Our Retirement Story Begins

Post author By Charles Mills
Post date September 29, 2023
No Comments on Theatre of Finance: Our Retirement Story Begins

Unhappy, stressed and upset couple paying bills or debt online on with a laptop at home getting angry, planning budget. Young man and woman having a dispute over finance, savings and increasing tax.

Theatre of Finance: Our Retirement Story Begins

“To me, retirement means doing what you have fun doing” — Dick Van Dyke

4 min read

Theatre of Finance: Our Retirement Story Begins

“To me, retirement means doing what you have fun doing” — Dick Van Dyke

4 min read

This is not your typical article, so read on below to be immersed into the world of retirement planning through a more familiar lense where we introduce you to Max and Lily as they attempt to ensure they are on track to enjoy the retirement they deserve.

Max is in his mid-40s and married to Lily, in her late 40s. Our story begins with them both at home trying to make sense of what they can do to plan for their retirement!

Let’s see what they are discussing…

Max's Retirement Dilemma

Max sits on the couch, staring at a pile of retirement brochures, looking perplexed.

MAX: Lily, come take a look at this!

Lily enters the room with a cup of coffee.

LILY: What’s up, Max?

MAX (slightly frustrated): I’ve been reading about retirement planning all morning, but it feels like I’m deciphering hieroglyphics. It’s so overwhelming!

LILY (overwhelmed): Well don’t look at me, I have no idea, Max. In Switzerland everyone is talking about a Pillar 2 or a Pillar 3, and then everyone in the UK keeps going on about a SIPP and an ISA? It’s all so…financial! Maybe we should have stayed in one country! We need some guidance.

MAX (skeptical): Guidance, huh? Like from a Financial Adviser?

Suddenly, the ceiling opens up and an ANGEL descends from above, with a beam of heavenly light surrounding them. Strangely, this angel is wearing a suit and tie!

ANGEL (smiling): Fear not, Max and Lily, for I am your Retirement Guardian Angel, here to guide you on the path to financial enlightenment!

MAX (astonished): Is that…an angel?

LILY: Well, from the outfit I’d say no, but judging from making an entrance like that… I guess it might be!

ANGEL: Come with me, and you’ll be in a world of financial liberation. It’s filled with budgeting, investments, retirement options, and best off all you maintain your current lifestyle.

MAX (relieved): Sounds great, but can we start with something I enjoy instead?

LILY: Max, let’s embrace this amazing opportunity! This is our chance to have all our questions answered!

The Angel takes Max and Lily by the hand, and they all exit the room, leaving behind the confusing brochures.

The Guardian Angel

The trio arrive on a gorgeous beach next to a clear blue ocean and in the distance a beautiful beach house.

MAX (curious): Alright, Angel. So, where are we?

ANGEL: Well, this is where you could retire if you follow the steps I will show you.

LILY: This is amazing! Max, I’d love to retire to a place like this. It’s so peaceful and warm. We need to do whatever we can to be able to retire to a place like this.

ANGEL: Actually, Lily, remember I am going to show you how to get the retirement you want without having to go above and beyond!

MAX: Right, I’ll roll with it for a moment. Where do we start?

ANGEL: Well, to chart your course we first need to set clear retirement goals. Where do you envision yourselves? How much income do you want each year in retirement? Really, your retirement can be anything you want it to be as long as it aligns with your goals.

MAX: Well, as nice as this place is, I’d actually like a peaceful lakeside cottage in the Swiss Alps.

LILY: Let’s aim for both the cottage in the Alps and the beach house! 6-months a year in each place!

ANGEL: Wonderful! Just like that, you’ve got some retirement goals! Now, from here you need to do some budgeting. Track your expenses, create a budget, and make sure you allocate funds for retirement savings!

LILY (taking notes): Budgeting, got it!

Saving To Achieve Your Dreams

LILY: Angel, people say retirement is almost impoosible these days. There’s so many things to worry about, how do we cope with it all? Will we even be able to retire?

ANGEL: I understand, Lily. People often express concerns about stagnant wages, rising healthcare costs and economic uncertainties or-

MAX (interrupting): Or that their pensions won’t be enough!

ANGEL: Exactly. Whilst these are valid concerns, a well-thought-out retirement plan can address many of these issues. Diversifying your investments, considering an alternative source of income, and exploring retirement account options can help mitigate these challenges. This is why guidance is so valuable, sometimes the option that’s best for you is out there somewhere, but you just need someone to show you the way.

MAX: So, you’ve told us where to start, but what about WHEN to start? We are in our 40s now and have been contributing to an occupational scheme from work, but don’t really know much about it or have much put away for retirement.

ANGEL: Good question, Max! In truth, the best time to start was yesterday. However, the second best time to start is today! So, as soon as you possibly can you should start thinking about and saving for your retirement. Don’t be sad though, it’s never too late to what you can to achieve the retirement you both want, and deserve.

Investing For The Future

ANGEL: Make sure that you also have investments that are appropriately diversified and growing. You’ll be surprised what even investing 1,000 can turn into in 20-years or more! As long as you invest wisely, you are very likely to accelerate your progress to achieving your retirement goals.

LILY: Well, we’ll take that into account but we haven’t got much spare and we want to keep it all in cash. That’s the best thing to do, right?

ANGEL: Interestingly, keeping your money in cash is not always the best thing to do. It might feel safe as you can look at your balance and see 100,000 staying as 100,000. But, in reality, the amount of things you can actually buy decreases each year with a thing called ‘inflation’.

MAX: Okay, now you’re making things up as you go along! What’s inflation?

ANGEL: I’m not! Inflation is the general increase in prices over time. You know that coffee Lily had earlier? You paid 15.00 for the coffee beans, but in the future you might have to spend 20.00 to buy the same beans! So, you can see how even if you keep 100,000 in the bank, the actual value IS decreasing over time, and should be taken into account.

MAX: That makes sense. Have you got all that written down, Lily?

LILY: Setting retirement goals, budgeting, diversifying investments, alternative sources of income, exploring retirement account options, and seeking help. Got it! Is there anything else?

ANGEL (laughing): We would be here for years if I told you everything in this one conversation! That information will set you on the right track, and maybe I will visit you again in the future to help you along the way. For now, I must return to where I came from so let’s take you home.

LILY (slightly sad): That’s a shame, I was actually enjoying learning for once… and it’s real information that can actually have a positive impact on our lives now and into the future. This has been such a great experience. Thank you for coming to us when we needed it and showing us the way!

ANGEL: You’re welcome. Don’t forget though that help won’t always find you. Sometimes, you need to seek help out yourselves and don’t be afraid to do so! I’ll see you again…

Angel begins to float into the sky whilst Max and Lily find themselves back in their home with Lily’s coffee still hot on the table.

MAX: Well, that was good wasn’t it?

LILY: Good?! That was incredible! I’ll see if I can find someone who can help us as that Angel won’t be around all the time. You start putting together our budgeting spreadsheets and looking into retirement account options available.

MAX: Alright, let’s do this!

Looking For A Heavenly Retirement?

We’ve tagged along with Max and Lily as they had their adventure with their guardian retirement angel. It all seems a bit fantastical doesn’t it? However, that’s just not quite the case. Okay, perhaps being teleported by an angel to a beautiful beach and then back to your living room with the coffee still hot isn’t something that will happen anytime soon… but Patterson Mills are here to guide you on your road to retirement, no matter what stage you are at.

Planning for retirement doesn’t have to be intimidating. With a little guidance, even the most complex financial concepts can become clear. Whether you have an angelic Financial Adviser or not, taking those initial steps toward your dream retirement is the key to a brighter future. To ensure you’re retirement is taken care of, get in touch with us today and book your initial, no-cost and no-obligation meeting. Just send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Please note that all information within this story and article has been prepared for informational purposes only. This article does not constitute financial, legal or tax advice. Always ensure you speak to a regulated Financial Adviser before making any financial decisions.

Tags retirement, retirementplanning, theatre

Pensions

How Much Do You Need to Retire in Switzerland?

Post author By Edward Mills
Post date September 6, 2023
No Comments on How Much Do You Need to Retire in Switzerland?

Couple old mature people on the sand at the beach sitting enjoying drink juice and living the moment

How Much Do You Need to Retire in Switzerland?

“There is a whole new kind of life ahead, full of experiences just waiting to happen. Some call it ‘retirement.’ I call it bliss” — Betty Sullivan

3 min read

How Much Do You Need to Retire in Switzerland?

“There is a whole new kind of life ahead, full of experiences just waiting to happen. Some call it ‘retirement.’ I call it bliss” — Betty Sullivan

3 min read

Switzerland, with its picturesque landscapes, efficient healthcare, and high quality of life, is a dream retirement destination for many. However, it’s also known for its reputation as one of the world’s more expensive countries. So, how much do you need to retire comfortably in this Alpine paradise? In this article, we’ll explore the key factors and financial considerations that will help you plan your retirement in Switzerland.

Cost of Living in Switzerland

Switzerland consistently ranks among the top countries in terms of the cost of living. Cities like Zurich and Geneva are known for their high prices for everyday items, housing, and dining out. However, the cost of living can vary significantly depending on your location within Switzerland. Rural areas often have a lower cost of living compared to major cities.

To estimate your retirement expenses, consider your preferred location and lifestyle. It’s essential to budget for housing, food, healthcare, transportation, and leisure activities.

Healthcare Costs

Switzerland boasts a world-class healthcare system, but it’s also known for its high healthcare costs. As a retiree, you’ll need to factor in health insurance premiums, which are mandatory in Switzerland. Insurance prices can vary based on factors such as your age and the level of coverage you choose.

Additionally, consider the potential fees for medical services and prescription medications. While Swiss healthcare is excellent, it’s essential to be prepared for medical expenses in your retirement budget.

Retirement Age and Pension System

In Switzerland, the retirement age is typically 65 for men and 64 for women (65 in 2024). However, you can choose to retire earlier, but this may affect your pension benefits.

The Swiss pension system is divided into three pillars:

The first pillar is the state pension (AHV/AVS), which provides a basic level of retirement income.
The second pillar is occupational pension funds (BVG/LPP), which are mandatory for employees. Contributions are shared between employers and employees.
The third pillar is private savings and investments, which are optional but highly encouraged for supplementing retirement income.

Your retirement income will depend on your contributions to these pillars throughout your working life.

Housing Considerations

Deciding whether to buy or rent property in Switzerland can significantly impact your retirement expenses. Switzerland has a high rate of homeownership, but the property market is competitive, especially in major cities. Renting may offer more flexibility, but it can also be expensive.

When planning for retirement, consider your housing preferences and budget accordingly. If you plan to buy property, factor in not only the purchase price but also property taxes, maintenance, and potential renovation expenses.

Tax Implications

Switzerland has a complex tax system that varies between cantons. Some areas offer more favorable tax rates for retirees, so it’s worth researching tax-friendly cantons when deciding on your retirement location. Switzerland does have tax treaties with various countries, which can also affect your tax liabilities.

Lifestyle and Leisure

Retiring in Switzerland offers access to a wide range of cultural and outdoor activities. Therefore, it’s essential to account for leisure expenses in your retirement budget. Switzerland’s stunning natural landscapes provide ample opportunities for outdoor activities like hiking and skiing, but these hobbies may come with associated expenditure.

Investment and Savings

To retire comfortably in Switzerland, it’s crucial to build a solid financial foundation. Regular savings and smart investments in a diverse portfolio can help you achieve your retirement goals. Ensure you consult with a Patterson Mills Financial Adviser to create a retirement plan tailored to your needs and risk tolerance.

Don't Delay Your Retirement Planning

As much as we would love to give you a straight answer, there is no one-size-fits-all approach to the question about how much you will need.

It depends on the lifestyle you wish to lead and that is unique to each individual. For a rough estimate, think about how much you will need to spend on the essentials, and then how much your expenditure will be on leisure activities and you know you need at least that amount!

So, don’t delay as retiring in Switzerland can be a dream come true, but it requires meticulous financial planning. Your retirement needs will depend on your lifestyle preferences, location, and individual circumstances.

To determine how much you need to retire comfortably in Switzerland, make sure you talk to Patterson Mills who will provide you with personalised guidance based on your specific goals and financial situation.

Planning ahead and making informed decisions will help you make the most of your retirement years in Switzerland. To ensure your future is secure, get in touch to book your initial, no-cost and no-obligation meeting. Or, send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Tags pensions, retirement, switzerland

Pensions

Will You Enjoy the Retirement You Deserve?

Post author By Edward Mills
Post date May 1, 2023
No Comments on Will You Enjoy the Retirement You Deserve?

Youthful and playful happy senior old couple enjoy outdoor leisure activity riding together the same bike. Man carrying aged woman in healthy active lifestyle. Retiremd people using bycicle with sunlight

Will You Enjoy the Retirement You Deserve?

“Stay young at heart, kind in spirit, and enjoy retirement living” – Danielle Duckery

1 min read

Will You Enjoy the Retirement You Deserve?

“Stay young at heart, kind in spirit, and enjoy retirement living” – Danielle Duckery

1 min read

We are witnessing a surge in the number of people giving retirement a second thought. Not only are more individuals looking to work beyond their State Pension age, but some are returning to employment after retiring due to increasing financial pressures.

Considering Postponing Retirement

Studies have shown that millions of people aged 55 and over will be impacted by the long-term effects of financial insecurity and may believe that they have to continue to work past their State Pension age. Furthermore, many of those aged 55 and over simply do not believe their pension is enough to fund their retirement. It is worth noting that in Switzerland, your Pillar 1 (State) and Pillar 2 (Occupational) Pensions provide approximately 60 to 80% of your last income, with the Pillar 3 being an optional addition to make up the remaining gap.

Numerous over-55s who are not retired also anticipate having to work past their State Pension age due to the increasing cost of living and not adequately saving for retirement. Uncertainty of how long retirement savings will last, or not having made any preparations for retirement at all, are key drivers for working past State Pension age.

Concerns of Working Past State Pension Age

Those expecting to work past their State Pension age may also be apprehensive that doing so will mean they cannot enjoy their later years. Health is another major concern, with concerns over health deteriorating as a result of having to continue working being a top focus for many. The questions arising over health also attribute to the ability to remain employed, too. In addition, there is also rising concern about being treated differently (or worse) at work because of age and also worry about not being able to spend enough time with family due to work commitments.

Take Back Control

We all want to be in control of our retirement plans and feel confident we can stop working when we want to so that we can enjoy the retirement we deserve. If you are worried about how your current situation could impact on your retirement savings, we are here to talk through your options and provide peace of mind. To find out more, please speak to us.

Get in touch today and book your initial, no-cost and no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

Tags retirement

Pensions

Time for a Retirement Reboot?

Post author By Edward Mills
Post date February 28, 2023
No Comments on Time for a Retirement Reboot?

Happy senior couple enjoying retirement lifestyle having fun walking on the beach in a sunny beautiful day holding hands and hugging each other while traveling around Europe. In active old People.

Time for a Retirement Reboot?

“Retirement means doing whatever I want to do. It means choice.” – Dianne Nahirny

2 min read

Time for a Retirement Reboot?

“Retirement means doing whatever I want to do. It means choice.” – Dianne Nahirny

2 min read

Once you retire, how will you replace your income to maintain your current standard of living?

Nowadays there are more choices open to you than ever before when it comes to your retirement. This means there are more things you need to consider and have a plan for, like how to manage your finances to provide the income you’ll need to live on, how you’ll transition into full retirement and what lifestyle you want to enjoy in your later years.

Our Top Considerations

One of the biggest mistakes people can make is not saving enough for retirement. Our top 10 considerations in retirement are aimed at ensuring you have the ability to take control of your financial future. Knowing your destination helps you plan the best route to get there.

Make a plan!
When do you want to retire?
Are there any ways you can reduce your tax liability?
Can you continue working?
Do you need to downsize?
Have you planned for your long-term care needs?
How much will you need to fund essential and non-essential spending in retirement?
How much are you saving?
When can you access your state benefits and how much will you receive?
Have you taken the opportunity to receive trusted financial advice?

Planning is vital, and there is never a better time than the present. Work out what you spend each year now, when do you want to retire, how much of your spending is essential and how much is non-essential, and what lifestyle you wish to have in retirement. As a rule of thumb, it is often the case that people spend more in the earlier years of their retirement, and their spending reduces over time. It is important to take as many relevant factors as you can into account.

Your State Pension

In Switzerland, the pension system is split into 3 pillars. The 1st pillar is your state pension, the 2nd pillar is your occupational (workplace) pension, whilst the 3rd pillar is your private pension(s). The purpose of the Pillar 1 state pension is to provide you with a source of revenue to cover your basic financial needs.

Contributions are deducted from your gross salary as a percentage and are compulsory until you retire (age 64 for women, and 65 for men). Should you remain in Switzerland, you will receive the Pillar 1 pension as an annuity and does not have a transfer value (therefore, cannot be taken as a lump-sum). The amount you are paid is dependent mainly upon your years contributed, earnings, and the total value in your account. For the maximum allowance, men should contribute for 44 years and women for currently 43 years.

Reboot Your Retirement

We’re all leading busy lives and so it’s understandable if retirement plans have been placed on the back burner. If you are keen to revisit your plans and get them back on track so you can relax and fully enjoy your retirement years, there is never a better time than today, so please do get in touch.

Get in touch today and book your initial, free, no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

Tags retirement, retirementplanning

Pensions

Your Retirement Matters

Your Retirement Matters

“Retirement is not the end of the road. It is the beginning of the open highway” – Unknown

2 min read

Your Retirement Matters

“Retirement is not the end of the road. It is the beginning of the open highway” – Unknown

2 min read

Today, things are evolving with immense speed. We are not only living longer, healthier, and more active lives, but we can often now decide when, how, and even if, we retire.

An important note to remember is that it is never too early to start thinking about retirement planning.

One of the most crucial things you can do is begin saving for your future. Though, worryingly, there are many of us who do not have a clear plan for what we want to get out of our retirement, and there are even more of us who may underestimate how much money is needed.

Questions for you

A useful start is to ask yourself these questions:

How much money do I want to have saved by retirement?
What kind of lifestyle do I want in retirement?
What are my sources of income in retirement?

Essentially, the sooner you start saving and investing, the more time your money has to grow.

When you near retirement, the useful questions may change as you now have a clearer idea of what you have and what you will be able to afford.

You could now ask yourself:

How long will my money last?
Can I maintain my current lifestyle?
Do I stay invested or do I draw an income?

As you may have noticed, it cannot be stated enough that the key to an enjoyable retirement is to start as soon as possible. This can save you the panic of being in a situation where you are not prepared for retirement.

Your Swiss pension

In Switzerland, your pension is structured in Pillars. There is the 1^st Pillar, which is intended to cover basic needs, the 2^nd Pillar, which is based on the contributions you make during your working life, and the 3^rd Pillar, this being your private pension. The first 2 Pillars are compulsory, whilst the 3^rd is not.

It is unlikely that the Pillar 1 and 2 pensions will provide sufficient income in retirement to support the lifestyle you envisage, and so the Pillar 3 pension helps to bridge that gap.

Unfortunately, there is no crystal ball for any of us to look ahead and know what is going to happen during our retirement. So, it is increasingly important to explore the different advantages offered by having an effective retirement strategy in place.

Never too late

There should never be an occasion where you think that it is ‘too late’ to begin saving for your pension. Even if you only have a small amount of money to put away each month, it will add up over time. In addition, with the right plans in place, you can make your money go further than you may initially think.

Investment is important

Investing is an effective way to put your money to work and provides you the opportunity to build your wealth. How to invest, and where to invest, can be slightly more complicated and has a lot to do with your personal circumstances and risk appetite.

Understanding the type of investor that you are is one of the first steps toward understanding what sort of investment approach is best for you.

We are here to help

Whether you are looking to save as much as possible to build up your pension pot, or you want your money to stretch as far as possible in retirement, it makes sense to have an efficient strategy in place. Having a solid retirement plan is vital for a worry-free future.

We can help you look at the right options for your retirement plans, investment strategies and more, tailored to your individual circumstances and objectives. To find out more and discuss your own situation, get in touch with us today.

Get in touch today and book your initial, free, no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

Tags pension, retirement, retirementplanning

Pensions

Come Retirement, You Reap What You Sow

Post author By Charles Mills
Post date July 14, 2022
No Comments on Come Retirement, You Reap What You Sow

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Come Retirement, You Reap What You Sow

“Some of the wealthiest people in the world became wealthy by saving money” – Doug McMillon

2 min read

Hindsight, they say, is a wonderful thing and that is certainly true for many retirees struggling financially. Diligent planning at the earliest opportunity, however, can make all the difference between enjoying a comfortable retirement and enduring a regretful one.

Retirement Regrets

Research constantly shows that people typically leave retirement planning too late and regret not saving more across their working lives. For instance, a survey¹ recently revealed one in five people expect to leave planning for their retirement until they are aged at least 60. Another study² found almost half of over-50s regret not saving into a pension sooner, while nearly two thirds wished they had made larger contributions at an earlier stage. These findings vividly highlight the need for more people to take control and prioritise retirement planning earlier in their working lives.

Pension Blind Spots

Other research³ has revealed the cost of being kept in the dark on key pension details, with over three-quarters of people not knowing how much they pay in pension fees. Additionally, a third of pension holders are unaware of their pension’s risk profile, with a similar proportion invested in low-risk funds. This lack of awareness in relation to fees and investment choices is estimated to cost an average pension holder around CHF 140’000 over their working life.

Engagement Gap

The lack of engagement has led to an industry campaign to boost people’s understanding of pensions. The campaign, which is due to run this autumn and winter, will aim to raise awareness of various pension-related issues so that more people can ultimately enjoy a better standard of living in retirement. Patterson-Mills completely supports this initiative and believes that one of the keys to a successful retirement is not just saving but financial education, too.

Help at Hand

While current everyday financial pressures can make saving a difficult task, it is clearly imperative not to neglect your pension if you do want to avoid retirement regrets. We can help you take control to ensure you are able to enjoy the happy and fulfilling retirement you deserve.

Get in touch today and book your initial, free, no-obligation meeting. You have nothing to lose and potentially lots to gain! Send us an e-mail to charles@pattersonmills.ch, call us direct at +41 78 214 84 32.

¹Hargreaves Lansdown, 2022

²Aviva, 2022

³interactive investor, 2022

Tags financialplanning, retirement, retirementplanning