3rd pillar switzerland

5/25/2018 3rd Pillar Switzerland

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Private Pension 3rd Pillar

Plan Your Retirement Flexibly and Save Taxes.

Useful Facts about the Private Pension 3rd Pillar

The Private pension 3rd pillar augments the state (1st pillar) andoccupational (2nd pillar) pensions, which together only cover partof the income you were receiving immediately prior to retirement.The Private pension 3rd pillar helps you to close any gap in your

pension provision and to maintain your standard of living afterretirement. But you also derive numerous benets straight away.

Flexible Investment Options

Preferential interest rate of 1.5% on the Pension account 3rd pillar

Higher potential returns from Saving with securities 3rd pillar Flexible contribution options (without any commitment to pay

regular amounts) up to the statutory maximum.Maximum amounts in 2013: CHF 6,739 for those with a Pillar 2 occupational

pension plan 20% of net income up to a maximum of CHF 33,696

for those without a Pillar 2 occupational pension plan Easy payment option with the Standing order 3rd pillar,

free of charge: option to change the amount automaticallywhenever the Pillar 3a maximum amount changes Automatic investment of your retirement savings of more thanCHF 200 in a selected investment group with the Investmentplan 3rd pillar

Optimize Taxes

Contributions to Pillar 3a can be deducted in full from yourtaxable income

No wealth, income or withholding tax for the entire duration

of the investment The payout is taxed at a reduced rate, separately from yourother income

Opening two or three Pension accounts 3rd pillar gives youmore exibility at the time of payout and generally reducesyour overall tax burden

Example 11 (single person, Protestant, taxable income:CHF 60,000)

without Pillar

3a (in CHF)

with Pillar

3a (in CHF)

Part

payment

Maximum

contribution

Annual payment 3,000 6,739

Total tax 7,197 6,556 5,831

Annual tax saving 641 1,366

Example 21 (married couple, Protestant, taxable income:CHF 120,000)

without Pillar

3a (in CHF)

with Pillar

3a (in CHF)

Part

payment

Maximum

contribution

Annual payment 3,000 6,739

Total tax 18,040 17,279 16,343

Annual tax saving 761 1,697

1 The examples in this brochure are based on the income tax rates of the City ofZurich for 2012 and the maximum permitted contribution for 2013.

Flexible Withdrawals

You withdraw your retirement savings as soon as you reachnormal AHV retirement age. However, if you remain inwork, you can continue your Private pension 3rd pillarfor a further ve years.

Early payout is possible in the following cases: At the earliest, ve years before you reach the regularAHV retirement age

If you become self-employed If you leave Switzerland permanently (i.e. emigrate)

To purchase benets in your pension fund If you are in receipt of a full disability pension from the

Federal Disability Insurance (IV) scheme Should you die before withdrawing your retirement savings,they will be paid out to your beneciaries.

Financing Your Own Home

You can also request an early payout to nance your own home: Direct repayment (advance withdrawal): Accrued retire-

ment capital (or a portion thereof) can be used as a down

payment. Indirect repayment (pledging): Instead of paying your mort-

gage off directly, you can pay your mortgage installmentsinto your Private pension 3rd pillar.

CREDIT SUISSE PRIVILEGIA PILLAR 3 PENSION FOUNDATION


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Your Needs

You would like to accrue retirement savings and, at the sametime, Invest your pension capital on attractive terms

Save on taxes Realize your dream of owning your own home

Have the option of making exible payments Close coverage gaps Seize opportunities to earn good returns

Your Benefts

Attractive tax benets Preferential interest rate on the Pension account 3rd

pillar Higher long-term potential for returns with Saving with

securities 3rd pillar Attractive selection of actively managed or indexed securi-

ties solutions with broad diversication

Flexible contribution options with no savings obligation You do not pay any account or safekeeping account fees

or any issue or redemption commission High level of investor protection with Saving with securities

3rd pillar (separate assets, regulation) Retirement savings can be used for home nancing

Potential Risks

Market risk Management risk Foreign exchange risk

Please note the detailed information and other risks listed onpage 4.

Private Pension 3rd Pillar Products

Pension Account 3rd Pillar

With a Pension account 3rd pillar you benet from a pref-erential interest rate free of withholding tax which is higherthan the interest you can earn on a Credit Suisse AG savings

account. The Pension account 3rd pillar lays the foundationsfor good pension provision.

Saving with Securities 3rd Pillar

Saving with securities 3rd pillar offers you a long-term oppor-tunity to generate returns that exceed the interest on a Pensionaccount 3rd pillar. Depending on your investor prole and theinvestment period, you select one of several investment groupsthat differ mainly in terms of equity exposure and the invest-ment horizon. You can choose between actively managed andindexed investment groups.

Actively managed investment groups:These investment groups feature active management by specialist port-

folio managers. The objective is to maximize long-term performance.

Indexed investment groups:

These groups invest in funds which precisely replicate the indices and

hence the performance of various markets. Indexed investment groups

are not actively managed and have low overheads, which has a positive

impact on their long-term returns.

You can switch within investment groups as well as between aPension account 3rd pillar and Saving with securities 3rd

pillar at any time.

Comparison between the CSA Mixta-BVG Investment Group and a Pension Account 3rd Pillar

Between January 1, 1985, and December 31, 2012, the highest possible amount allowed by law was paid in at the beginning of everyyear, which comes to a total of CHF 155,980. The additional income from the CSA Mixta-BVG investment group versus the Pensionaccount 3rd pillar was CHF 47,961.

Contributions Total CHF 155,980

Pension account 3rd pillar Average interest rate: 2.6% p.a.Final net worth CHF 232,609

Saving with securities 3rd pillar(CSA Mixta-BVG investment group) Average return 3.5% p.a.Final net worth CHF 280,570

Additional income from CSA Mixta-BVG compared with Pension account 3rd pillar: CHF 47,961

Past performance is no guarantee of future performance.Source: Product Management Pensions

280,570

232,609

155,980150,000

50,000

100,000

0

200,000

250,000

Year

300,000

86 8785 88 89 90 92 97 99 02 03 050401 07 08 09 10 12110600989695949391

Assets in CHF


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An Overview of Pension Solutions

Finding the Right Solution for You

To help you nd the right pension product for you, the various pension solutions offered by Credit Suisse Privilegia Pillar 3 pensionfoundation are set out in detail below.

Your preferred

asset categories

for your retirement

capital

Savings account No securities

Real estate / mortgagesin CHF

CHF bonds

Securities in CHF andforeign currencies (mainlybonds and equities)



Average equity

component1No equities No equities 25% 35% 45%

Your knowledge

of this type

of investment

Adequate Adequate Adequate Adequate

Your experience

with this type

of investment

Once More than once More than once Frequent

Potential returns Preferential interest rate Low to moderate Moderate Moderate to high High

Risk (fluctuations

in value)

None Low Low to moderate Moderate Moderate to high

Investment horizon Up to 5 years or more Up to 5 years or more 5 years or more 5 years or more 8 years or more

Potential needs You are very security-con-scious and want to avoidrisks of any kind whensaving for your retirement.Security is more importantto you than potentiallyhigher returns.

You prefer an investmentgroup with no exposureto equities or foreign cur-rencies as your need forsecurity is great and you

want stable performance.

In order to take advantageof potential price rises onthe equity markets, youare prepared to accept lowto moderate fluctuationsin value.

You prefer a larger equitycomponent and expectmoderate to high returns,for which you are preparedto accept a certain amountof fluctuation.

You want the maximumequity component possi-ble under the law and areaiming for high returns.You are therefore preparedto accept moderate to highfluctuations in value.

Possible solution

(incl. portfolio com-

position)1

Account Actively managed

Pension account

3rd pillar (savings

deposit with prefe-

rential interest rate)

100% savings deposit

CSA Mixta-BVG Basic

(security no. 1486149)

30% mortgages 25% bonds 40% real estate 5% money market

instruments

CSA Mixta-BVG Defensiv


25% equities 58% bonds 8% real estate 9% money market

instruments

CSA Mixta-BVG



instruments

CSA Mixta-BVG Maxi



instruments

Indexed

CSA Mixta-BVG Index 25


25% equities 70% bonds 5% real estate







You can nd current statistics on returns for the individual investment groups and further information on saving with securities atwww.credit-suisse.com/pensions.

1 These are indicative values which, depending on the market situation, may uctuate within the bandwidths dened in the investment guidelines.


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Potential Risks

Potential Loss

Under some circumstances investments in CSA Mixta-BVGinvestment groups may fall in value. Thanks to risk diversica-tion across a variety of collective investments and the underly-

ing assets contained in them, the likelihood of a total loss isvery low.

Market Risk

The investor bears the risk that the value of the CSA Mixta-BVG investment groups may fall during the term. This can bethe result of uctuations in the market prices of the underlyingsecurities. Fluctuations result from a range of causes includingchanges in fundamentals and unforeseeable, sometimes irra-tional, behavior on the part of market participants.

Management Risk

The portfolio management of the CSA Mixta-BVG investmentgroups selects the collective investments and determines theweightings within the dened bandwidths. These decisions canalso lead to losses.

Foreign Exchange Risk

The CSA Mixta-BVG investment groups (with the exceptionof CSA Mixta-BVG Basic) invest some of their assets in cur-rencies other than the Swiss franc. Exchange-rate uctuationscan therefore have an impact on investment values.

Contact Us

Your advisor at Credit Suisse AG will be pleased to

arrange a personal consultation.

Call us at +41 848 880 840; Mon-Fri, 7:3017:30. For more information, visit our website at:

www.credit-suisse.com/pensions

SOLS12

4014

03.2013

Pillar 3a products are intended primarily for employed and self-employed persons in Switzerland. They supplement the mandatory rst and second pillars.Pillar 3a products offer tax advantages for clients whose tax domicile is in Switzerland. If a client transfers his/her domicile abroad, the Credit Suisse

Privilegia Pillar 3 pension foundation must restrict the information it gives the client to the obligatory information pursuant to Swiss law and may notprovide the client with more extensive information at his/her place of domicile abroad. Moreover, the tax advantages granted in Switzerland no longerapply. Consequently, we strongly recommend that clients who are moving abroad seek the advice of independent specialists. This document may notbe distributed in the United States or passed on to any US person (as dened by the current version of Regulation S of the US Securities Act of 1933).The same applies in all other jurisdictions, except where permitted under the applicable laws. Copyright 2013 Credit Suisse Group AG and/or itsafliates. All rights reserved.

Liquidity Risk

As a matter of principle, units in CSA Mixta-BVG investmentgroups can be subscribed and redeemed on a daily basis. Inexceptional market situations the management of CSA can

temporarily limit or discontinue the redemption of units. If ina particular investment group the liquid assets for immediatepayments are not adequate and if an immediate sale of inher-ent investments could lead to disproportionately low prices dueto a lack of market liquidity, the redemption of units can bepostponed for up to three weeks or staggered.

Tracking Risk

The return on a CSA Mixta-BVG investment group can belower than the return on the underlying benchmark becausethe investment group is subject to management fees.

Other Risks

The investor may be exposed to other risks associated with theunderlying securities in the collective investments. These canrelate to counterparty risk, the use of derivatives, or invest-ments in emerging economies or real estate.

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