How are 3rd pillar investment strategies designed? 

Good news: the investment strategies are already set up for you, designed to match your profile and available directly in the Pilla app. The goal is to make things easy, even if you’re not a financial expert, while keeping your investment diversified and sustainable. 

What are the investment options for your 3rd pillar?

As a 3rd pillar investor, you can choose a classic savings option, such as a fixed-interest investment in Swiss francs, invest in ESG funds, or combine both – and you can adjust your strategy at any time. What’s a fixed-interest investment? It’s one that offers a predefined and stable return over a certain period, for example a savings account or a term deposit. 

An ESG fund is an investment product that selects companies based on Environmental, Social and Governance criteria. Unlike traditional funds that focus solely on financial performance, ESG funds also assess how companies impact the environment, manage social issues and ensure good governance. 

How can you choose the right investment strategy for your 3rd pillar?

If you decide to invest your 3rd pillar, it’s best to start by assessing your risk profile, then choose one of the available strategies. Each strategy includes a maximum share allocation (from 20% to 95%), matching your profile – conservative, balanced, dynamic, growth or capital gain oriented. 

You decide what suits you. Based on the information you share, an appropriate investment profile will be suggested. You don’t need to know the stock markets to make your 3rd pillar grow. The strategies are diversified, long-term oriented and tailored to your goals. 

What returns can you expect from different types of investments?

As a reminder, traditional savings accounts offer 0.1% to 0.5% returns. Life insurance 3rd pillar solutions offer around 1% to 2%, but tend to be more expensive and rigid. Investment funds have historically generated between 3% and 7%, though with higher volatility. 

Through investment or index funds, you gain access to professional, structured, and potentially higher-performing financial exposure than through individual investments. An index fund follows a market index such as the S&P 500. It’s a simple way to invest without the stress. 

Before investing in the markets, make sure to: 

• Assess your profile: do you prefer preserving your capital with low risk or aiming for higher long-term growth with greater risk? Intermediate profiles (conservative, balanced, dynamic) also exist. 

• Use a solution that fits your profile and your needs. 

Pilla helps you make the most of your 3rd pillar – an efficient, profitable retirement savings plan. It’s considered a safe option because it gives you more control, flexibility and visibility over your savings. That’s quite an advantage!