The usefulness of an annuity that guarantees a smooth retirement is well established. You benefit from a secure pension that lasts for life. The importance of a fixed income whose invested capital is protected offers you the advantage of sleeping soundly without any worries.
Annuities can be immediate or deferred. You have the opportunity to spread them over and get more income during your most dynamic years. For 1 or 2 heads, this pension choice benefits from very powerful tax and inheritance advantages.
Guarantee a fixed income
The very principle of converting capital into an annuity is to obtain a regular pension that allows you to improve your standard of living or to bring you a return on your invested capital. This fixed income is complemented by additional income that is not contractually guaranteed and which depends heavily on market rates. This is called surplus and is allocated from year to year.
Take advantage of advantageous taxation
This solution benefits from several tax advantages. The first advantage is a pension that is only taxed on income at 4% in 2025. An annuity of CHF 10'000.- francs per year will therefore be taxed on only CHF 400.-
Another advantage is that this solution can partially or completely remove the invested capital from wealth tax. It does not matter whether there is a return of capital for the heirs or if there is a desire to recover the amount. However, pay attention to the taxation of a repurchase transaction (recovery of assets) of a life annuity.
Ensuring longevity
The essence of a life annuity is to insure the risk of longevity. Indeed, life expectancy is increasing (although it has stopped slightly in recent years) and if health allows you, you need an income to cover your expenses and expenses over time.
This type of solution allows total peace of mind since a minimum pension is guaranteed. Some actors even propose indexing the pension in the event of a significant increase in the cost of living.
Protect your spouse (pension on 2 heads)
Covering your couple with this pension allows mutual protection in the event of the death of one of the 2 members of the couple.
The choice to continue receiving all or part of the agreed pension is possible. The survivor will have no fear about the management of his assets. This type of coverage is mainly used to cover the needs of the couple and/or the survivor.
Leaving assets to the heirs (return)
Unlike the pensions of the 2th A pillar (pension fund) that is extinguished and does not leave capital to the heirs in the event of the death of the policyholder and his spouse, life annuities can be returned to the heirs for a term of which can be determined.
A solution even allows heirs to recover the capital invested at the beginning, although an annuity was paid to or to the insured between the conclusion of the solution and the death of the insured person (s).
Not being dependent on markets
You don't trust the stock market, you doubt the markets, you're making the right choice.
Life annuities are insured and do not depend on markets. The statistical risk of death and life expectancy are the 2 most important parameters when concluding this type of pension. Once the pension is concluded, it no longer changes for the guaranteed portion. The capital is also protected and will not be subject to stock market fluctuations.
Don't worry about anything
You want a peaceful retirement and only want to take advantage of the money you receive on a regular basis. No worries about human or financial management. Absolute tranquility.
In this area, as in other areas of finance, pension or insurance, you can delegate management and the stress associated with this management to professionals.
Are you interested in a life annuity? Contact us! We will advise you in order to launch the best solution.
