For many people, knowing they will be able to enjoy a comfortable retirement gives them peace of mind and means they have one less big thing to worry about.
At Julius Baer, we understand the value of that peace of mind, and partner with individuals and companies to provide holistic and tailored pension advice and solutions.
Pension solutions for private individuals: In addition to helping you develop a strategy for your pension assets, we support you with vested benefits planning and advise you on optimising your tax situation.
Pension solutions for companies: We have extensive expertise in developing customised executive pension plans (1e solutions) for businesses.
How does it work?
If you are looking for a pension solution for yourself, we first examine your current situation with you and discuss your goals for retirement. We then develop a tailored solution designed to help you reach these goals, and coordinate this with your overall investment strategy, while ensuring that your tax situation is optimised. After your pension solution has been implemented, we review it on an ongoing basis and adjust it in line with any changes in your circumstances.
If you are looking to establish a management pension (1e) solution for your company, our team of experts first assesses your situation and gains a thorough understanding of your needs. In collaboration with trusted external foundations and providers, we then develop several different solutions for you to choose from. In a next step, we introduce your employees to the solution and provide them with one-to-one advisory services to help them determine which investment strategy is best suited to their needs. From the time the solution is implemented, Julius Baer has full responsibility for managing your company’s pension assets.
Swiss law stipulates that insured persons can transfer their retirement assets to two legally separate vested benefits institutions if they meet certain criteria, eg if they are retiring before the age of 58 or if they are moving abroad.
Splitting the assets between two different providers can have a number of advantages, including greater flexibility, as the two funds can be managed according to different strategies and risk profiles. Depending on where you live, this type of split could also enable you to optimise the tax rate that is applied when you withdraw your capital.
Some vested benefits foundations do offer insurance against the risk of disability and death. This protection can be customised to suit your specific situation and, in most cases, is more cost-effective than if you get private coverage from your insurance company.
It depends on your investment solution. Some financial institutions will allow you to transfer the assets in your pension portfolio directly into your custody account. This means you do not have to liquidate your pension assets at an inopportune time and extends the investment horizon for those assets. However, it’s important to note that this kind of transfer is subject to stamp duty, as the owner of the portfolio changes when it is transferred from pension assets to a person’s personal assets.
If you have an executive pension solution with Julius Baer, you can choose from ten different strategies, including one low risk strategy. This flexibility enables you to select the strategy that best meets your needs and risk profile. You also have the possibility to switch to a different strategy at any time.
Offering executive (1e) solutions can give employers an edge in the employment market, as they are seen by many potential employees as an attractive benefit. Also, with these solutions employers eliminate the risk of having an underfunded pension plan. Another advantage is that these solutions are not recognised as pension liabilities, meaning that companies who report under IFRS or US GAAP can reduce the pension liabilities on their balance sheet.