Retirement apps have been among the most successful newcomers to the Swiss financial scene for several years now. Residents of Switzerland have already invested more than 5 billion francs of pillar 3a assets using these digital asset management services. That figure shows that the pillar 3a is becoming increasingly digitized. Some Swiss retirement saving apps now offer vested benefits management as well.
Retirement saving apps are cheaper than conventional retirement funds
As with other asset management services, the costs of retirement saving apps are composed of two primary components: A flat asset management fee, and the fees charged by the investment funds or other financial products used. Some digital asset management services include the cost of investment products in their flat fee, so you do not pay extra. Some others only charge product costs, but no asset management fees. You should always account for both of these possible costs. Some apps charge different flat fees depending on which investment strategy you use.
The costs of Swiss retirement saving apps range between 0.39 and 1.07 percent per year. Compared to conventional retirement funds, that is substantially cheaper. The average cost or Swiss retirement funds is more than 1 percent per year. “But there are specific retirement funds which can be just as cheap as digital retirement asset apps, so comparing retirement funds is still recommended,” says moneyland.ch CEO Benjamin Manz.
Swiss digital retirement asset management services: Cost comparison
| Offer |
Flat fee |
Product costs (TERs) |
Total costs |
Sustainable investments? |
| Descartes |
0.65%-0.8% |
Included |
0.65%-0.8% |
Yes |
| Everon |
0.80% |
0%-0.27% |
0.8%-1.07% |
Partially |
| Finpension |
0.39%
(Vested benefits:
0.53%) |
0%-0.03% |
0.39%-0.42%
(Vested benefits:
0.53%-0.56%) |
Partially |
| Frankly (ZKB) |
0.45% |
0%-0.04% |
0.45% |
Yes |
| Gioia 3a (GKB) |
0.10% |
0.61%-0.78% |
0.71%-0.88% |
Yes |
| Inyova |
0.80% |
Included |
0.80% |
Yes |
| Libertygreen |
0.40% |
Included |
0.40% |
Yes |
| Pando |
0.99% |
Included |
0.99% |
Yes |
| Selma Finance |
0.68%
(up to CHF 50,000) |
0.22% |
0.90% |
No
Information |
| Tellco |
None |
0.39%-0.71% |
0.39%-0.71% |
Partially |
| Viac |
0%-0.53% |
Included |
Max. 0.53% |
Partially |
| Vontobel Volt 3a |
0.48% |
0.23%-0.42% |
0.71%-0.9% |
Yes |
| Yapeal Y3A |
None (with
the free account) |
0.42%-0.47% |
0.42%-0.47% |
No
Information |
The most important criteria for choosing the right app
Costs are one of the most important criteria to consider when choosing the right retirement asset management service. But there are other criteria to consider, such as which financial products are used, how user-friendly the app is, and the quality of customer service when problems occur. Checking customer reviews and looking at apps can help you determine how user-friendly they are before you commit. If sustainable investments are important to you, you can limit your selection to apps which offer them.
How sustainable are Swiss retirement saving apps?
Apps which primarily use investment products with a focus on sustainability include Descartes, Frankly, Gioia, Inyova, Libertygreen, Pando and Vontobel Volt 3a. Other apps like Finpension, Tellco, and Viac give you the option of using sustainable investment products if you want to.
Most Swiss retirement saving apps follow the current ESG criteria for sustainability. These stand for sustainability with regards to environmental and social issues, and corporate leadership. But ESG criteria are not tightly defined. “We repeatedly see justified discussions about how sustainable these criteria really are,” comments Manz. But the sustainability criteria used by Swiss retirement apps are a start, at least.
Pillar 3a: Stock investments or savings account?
Retirement apps primarily invest in stocks and some other asset classes – often indirectly using exchange-traded funds (ETFs). Because of this, you should have a long investment horizon – ideally at least 8 to 10 years – as you would with other stock market investments. There will likely be years in which your investments will lose value. “If the thought of losing money keeps you up at night, then using a conservative pillar 3a savings account is more appropriate,” says Manz. While you will likely earn smaller yields over the long-term, there is no risk of losing money.
More on this topic:
Swiss digital asset management apps for pillar 3a and vested benefits FAQ
Compare Swiss retirement funds now
