Annuity or capital? Inflation changes the choice

We are publishing here a series of articles on pension issues and on the challenges of the 2nd and 3rd pillar. Le Temps also organizes the pension forumon September 8, in Lausanne, which will return precisely to these themes.

If the financial situation of the future retiree is modest, pension experts advise once morest choosing capital rather than annuities, because the ability to take financial risks will be more limited, even if equities have become cheaper this year. “In a difficult stock market environment, customers prefer the annuity more,” observes Roland Bron, director of VZ in French-speaking Switzerland. The capital is often interesting, in his opinion, but provided that the financial situation of the household is solid. If the insured needs capital, the sale of a real estate object is often advised and the purchase of a less expensive property.

Leave a Replay