26 October 2020, text: Mirjam Arnold, photo: Deposit
The earlier you start planning to cover risks, provide protection for your partner or family, and make sure your retirement is free of financial worries, the better you can tailor the coverage to your requirements. After all, our lives are changing all the time, as are the risks posed by such changes. Whether to safeguard a family when purchasing residential property, a partner in a patchwork family or a business partner in a joint enterprise: everyone needs protection that is tailored to their particular needs.
Your particular employment career or work process influences how much money you will have at your disposal during the third phase of life. The ever greater variety of types of work and options for shaping your working life makes it more and more important to start planning early for retirement. You may launch a whole new career at 50 or want to work less to have more time for your children or even take a sabbatical – all decisions of this kind will impact your pension situation and usually influence your retirement benefits. That is why it is especially important to be aware of the repercussions of such decisions and to find out exactly how they will affect your retirement and other benefits. If you don’t retire at the “appointed” time, this will also have an impact on your retirement benefits.
Society is changing and the retirement benefits system, too, has to adapt to reflect the changes. The OASI and occupational benefits systems that provide us with income in old age are currently stricken by a reform backlog. As these are the two main sources of income in retirement for the majority of people in Switzerland, everyone should take a close look at their personal situation as regards pension benefits and assess it in light of where they currently stand in life and what their personal goals are.
On the one hand, you have to take into account what aspects you can influence yourself: How can I shape my private and professional life? What consequences will this have for my risk cover and, later, for my pension provision?
On the other, we must acknowledge that, in the wake of societal change, the cover provided by social and private insurers will be adapted constantly. And that means changes in benefits. That is why it is very important to regularly review your own personal risk and pension situation, also in relation to your partner or entire family.
When it comes to occupational benefits, the same applies to men and women alike: the shorter your working life and the lower your income, the more modest your retirement capital or pension will be. Precisely because of that, and also in view of today’s historically low interest rates, it is even more crucial to take the initiative and begin saving for your retirement. That’s not always easy when you are young or have a family, because there isn’t much left over to invest at the end of the month. It is even harder for women who take long breaks from working life to bring up children. And yet: if you want to be financially independent in old age, you should begin setting aside something now. The earlier you make a start, the better.