Low fees that you can mostly deduct from taxes without a currency exchange surcharge
Direct access: #Strategies #Fund list
Advantages
Your benefits when you invest your capital withdrawal with finpension
finpension offers everything you need for managing your pension fund assets. It is cost-effective and the risks are diversified across many different investments. Due to the high degree of automation, we can ensure a very high quality of service on the one hand, and still have enough time to personally attend to your questions and needs on the other.
Cheap
Diversified
By diversifying your investments, you can achieve your goals without taking unnecessary risks
Automated
We monitor your portfolio, rebalance it to the target weights if necessary, and reinvest dividends
Flexible
You can liquidate your assets as needed or set up a regular withdrawal plan with a withdrawal plan.
Invest your pension fund
Investing like pension funds – only better!
Withdraw the pension fund as capital and then invest it yourself, but how? Many prospective pensioners in Switzerland ask themselves this question. One interesting approach is to invest the money in the same way as pension funds. However, this is only partially a good idea for the following reasons:
- Unlike pension funds, you have to fully tax the returns as income. Therefore, a yield-oriented investment strategy, which is followed by many pension funds, is less suitable for your own assets than a strategy that focuses on growth and capital gains.
- On average, Swiss pension funds invest 30% of their assets in equities. The rest is invested in bonds or real estate. However, we have to make certain reservations regarding both bonds and real estate.
Why you should not invest in high-yield bonds
The yields on CHF bonds are low. Bonds in other currencies, such as USD or EUR, offer higher yields. However, these currency regions not only have higher yields but also higher inflation rates compared to Switzerland. Over time, this is likely to result in currency losses. After accounting for these currency losses, the net return is expected to align with the yields of CHF bonds.
The issue, however, is that you still have to pay taxes on the higher interest income from foreign currency bonds. The pursuit of higher yields can therefore turn into a losing proposition. For this reason, finpension does not include foreign currency bonds in its investment strategies.
As mentioned earlier, the yields on CHF bonds are low. You should assess whether investing in bonds is currently worthwhile. Alternatively, you can allocate the bond portion of your portfolio to a savings account and invest the remaining amount entirely in equities. If your risk capacity at finpension does not allow for a 100% equity allocation, you should revisit the risk assessment questions.
UBS (CH) Index Fund – Bonds CHF NSL I-A-acc
| Yield to maturity of CHF bond funds (as of 31 January 2025) | 0.79% |
| Compensation to finpension | -0.39% |
| Net return in CHF | 0.40% |
Why real estate funds are only partially suitable for diversifying equities
Pension funds often invest directly in real estate and hold these assets for very long periods. The advantage of such long-term direct real estate investments is greater price stability. In contrast, the value of indirect real estate investments via exchange-traded real estate funds fluctuates significantly—similar to equity funds. This is why real estate funds are only partially suitable for portfolio diversification.
Investments in private markets are a better alternative, as they share similar characteristics with direct real estate investments. If you want to invest in a way similar to pension funds, it is better to allocate part of your portfolio to private markets.
At finpension, your setup could look like this:
| Equities & Bonds (Portfolio 1) | 90% |
| Private Equity (Portfolio 2) | 10% |
| Total of securities investments | 100% |
Investment models for pension fund assets
Investing pension fund assets: There are two proven models
For those who want to invest pension fund assets while still having a certain need for liquidity, there are different approaches. Here, we present two simple and proven models:
Liquidity needs on a savings account, the rest in securities
Combining securities with a withdrawal plan
Strategies
The right investment strategy also depends on your values
Tell us what matters to you. We will take care of the rest. With the “Auto Select” strategy mode, we choose the equity portion that best suits you.
With the “Self Select” strategy mode, you can choose the equity portion that matches your risk tolerance. You can also determine the investment orientation or create your own strategy.
Fees
A low fee that you can largely deduct from your taxes
The flat management fee consists of a general custody account management fee of 0.30% and a fee for wealth management of 0.09%.
The breakdown of the fee simplifies the deduction of costs in your tax return later. Unlike other digital wealth managers, who charge both in a single flat fee, you can fully deduct the custody fee from finpension for tax purposes.
In addition, there are the costs of the funds used (TER). These range from 0.08% to 0.10% for the standard strategies Global, Switzerland, and Sustainable.
*As a marketing initiative and to benefit from the increased willingness of domestic bank customers to switch, we have decided to waive the fees for the entire year of 2025.
0.39%
free of charge from 01.01.2025 to 31.12.2025*
Added value
Savings that pay off
At banks and insurance companies, you quickly pay one percent more per year for your investments. What may seem like a small amount at first, adds up to a significant sum over time.
Calculation basis:
investment term 15 years, average annual return of 5 %, incl. additional return of 1 % compared to competitors due to lower investment costs and withholding tax re-optimization.
Step
1
Start the registration at finpension
To do so, open the web app or download the finpension app on your smartphone. Start the registration and select the offer “Invest Wealth.”
Personalized advice
From simple questions to pension planning – we are happy to offer you personal advice.
Are you facing the decision of how to withdraw and invest your pension fund? If you’re interested in investing a portion of your pension funds with finpension, we can offer you a free pension plan.
Feel free to contact us without obligation. We are happy to offer you personal advice.
FAQ
Frequently Asked Questions about finpension's Investment Solution
What is the name of the service that finpension provides?
In legal terms, the service offered is wealth management under the Financial Services Act (FinSA). You grant finpension a power of attorney to invest and manage the assets you transfer to finpension in securities per your wishes. Further information on the characteristics and functioning of wealth management by finpension can be found in the sample wealth management mandate available on the website.
Why can finpension offer wealth management at a much lower price than other wealth managers?
We can offer wealth management at a much lower cost because our processes and procedures are largely automated, which not only leads to a more efficient way of working but also to better internal risk control. In addition, finpension does not maintain physical branches. Finally, the use of cost-effective and tax-optimized investment products results in a significantly more attractive offering than that of established banks and traditional wealth managers.
Can I transfer my funds from the pension plan to the investment solution?
You can continue the investment strategy in the investment solution. For tax reasons, however, we use different funds for unrestricted assets than for pensions.
As finpension uses genuine pension funds in its pension provision, which can reclaim taxes on foreign dividends, these cannot be transferred to the investment solution.
Please note that pension funds from other providers cannot be transferred to the investment solution if they are genuine pension funds. If you can transfer pension funds from other providers, these are only pseudo-pension funds.
How does finpension monitor my systems?
finpension periodically checks whether your investments have moved away from the selected investment strategy. If the investments deviate too much from the investment strategy (deviation greater than one percentage point), a rebalancing is carried out and the investments are realigned to the strategy weightings.
Why can’t I make withdrawals to bank accounts other than the reference account?
By restricting withdrawals to a verified reference account, we can increase the security of our investment solution for you (more secure than any e-banking solution). On the other hand, it makes it easier for us to comply with regulatory requirements relating to money laundering.
Security
Safety first – Your pension fund assets with finpension
finpension is as secure as a bank. We hold a license for a securities firm and are directly supervised by the Swiss Financial Market Supervisory Authority (FINMA). Additionally, we have been profitable since 2019, generating a profit of 3.8 million Swiss francs last year. This financial position enables us to continue evolving actively.
Cash holdings at finpension are protected by deposit insurance, just like at a bank, up to CHF 100,000.
More secure than e-banking
The finpension app and web app offer a higher level of security than traditional e-banking. Withdrawals are only possible to a verified reference account. Even if fraudsters gain access to your login details, they cannot make transfers to foreign accounts.
Web application and mobile app
Register now & take a look – no obligations
You can register directly via our web app or by downloading the free finpension app on your smartphone. No minimum fees and no obligation to make a deposit.
Test the portfolio without an ID card
To open a portfolio, you do not need an ID card yet. The ID verification takes place in a later process (before the first deposit), which you can initiate yourself. Take advantage of this opportunity to explore the app without any obligation. If you decide otherwise, you have the option to delete your account independently.
Invest wealth