Increase in tax deductions
Many positive changes are to be expected in 2023 in the field of pension linked 3th pillar 3a) And the free pension (3)th pillar 3b).
The maximum deductible amounts of Pillars 3A will increase and the tax gain can therefore be optimized and the solutions will be even more efficient.
Here is an overview of the various changes and trends in the market of 3th pillar and pension provision in Switzerland
For persons affiliated to a pension fund
The new maximum deductible amount for pillar 3A in 2023 is 7,056.- francs, the symbolic bar of 7,000 francs has therefore been crossed and this increase makes it possible to benefit from even more tax savings.
The other advantages, such as the non-taxation of earnings or even the capital that does not enter into the wealth, remain in place, so the trend is still to improve private pension provision, including the 3Memes A pillars are part.
For people who are not members of a pension fund
The new deductible limit for pillar 3A in 2023 is 35,280 francs
Be careful, however, this is the maximum ceiling because another limit is that the maximum deductible amount is 20% of the annual net income.
This allows self-employed persons who are not affiliated to an LPP pension fund (Occupational Benefits Act) to compensate for non-contributions to it and to prepare for retirement.
Higher interest rates
Inflation is well present in the US, European and Swiss areas. This results in an increase in central bank interest rates and this directly influences the guaranteed interest rates granted to insured persons.
For traditional 3A bank accounts, the announcements of rate increases have already started. These increases will be of the order of +0.2% on 01.01.2023.
For the 3Memes pillars in insurance, guaranteed values will increase for new contracts and surpluses will increase for existing contracts. This will improve contract values and projections.
Flexibility of market solutions
Many establishments will offer new solutions or expand existing ones.
For example, fund switch options with more extensive fund choices will come onto the market.
In insurance companies, the trend is towards the possibility of changing the level of coverage of the contract during the contract. The possibilities of readjusting your contract or suspending it in the event of a bad financial situation increase and thus improve flexibility in favor of insured persons.
Sustainable in the spotlight
More and more companies, banks or insurance companies offer solutions that focus on the sustainability of investments.
Unlike existing solutions linked to funds, new solutions clearly point in the direction of concrete results and are not only marketing. Indeed, sustainable funds up to now are very often invested in companies that have signed charters committed to this or that but have no numerical and/or imposed objective.
In 2023, for example, there will be solutions with funds linked to solar, hydraulic or even hydrogen energy and thus respecting the wishes of the people interested in these investments.
Even better, solutions with clear objectives linked, for example, to CO2 emissions, will gradually appear on the market in 2023.
The present is the future
Start considering your future now. The various trends are aimed at improving the solutions themselves and the state wants to mark the benefits even more in the future.
