Your pillar 3a account allows you to do more than just provide for the future – by investing your provisions in funds, you can decide yourself how to invest your money. Not only will you have greater returns than with an interest-bearing or savings account and therefore more for your retirement, but you can also contribute to sustainable change – in your own way as you see fit.

Tip 1: Actively invest your money in sustainable funds instead of leaving it in an account.

Don’t leave your money hibernating in a savings or interest-bearing account. Active investments in pension funds offer what accounts cannot in times of low interest rates: returns. Current interest rates are so low that they do not even compensate for inflation. Even in turbulent times such as the present, investments on the equity markets still pay off. This is because money such as your 3a assets that is invested for a long time – with a time horizon of at least ten years and more – is a good way of offsetting fluctuations on the markets. This is shown by the financial data analyses of recent decades. Even if you are security conscious and select a low level of risk, you can still achieve a higher return than on a savings account.

And if you do decide to invest your pillar 3a assets – regardless of whether you are a cautious investor or relish risk – why not also invest them sustainably? You’ll be following a new trend. A third of European fund assets already count as sustainable. And demand is growing (source: 2021 PwC study).

For example, if you invest in ESG funds, you will find companies in your portfolio that perform well in terms of environmental, social and governance criteria. Impact funds also go a significant step further. The assets of these funds are specifically invested in projects and companies that bring about measurably sustainable change.

With Pando you can invest your 3a assets in both sustainable investment types. Find out for yourself and use the Pando calculator to see how sustainable investments can help you achieve your pension goals.

Tip 2: Start early and select an environmentally conscious 3a provider that is just as flexible as you

If your money is invested for a long time, it will also have a long impact period. This not only pays off for you. For example, if your money is invested in sustainable ESG or impact funds, companies can work with the money and make a bigger difference. In addition to these advantages, you will of course also save on taxes right from the start. This is because you can deduct the full amount that you pay in each year from your taxable income.

It doesn’t matter how much you pay in initially, as even with smaller sums you will achieve a big impact over the years thanks to compound interest. There is no minimum investment, no fixed contract and no insurance component with Pando. You can pay in flexibly – whenever it suits you and as much as you like – up to the maximum annual amount. This is CHF 7056 for you in 2023 if you are in employment and affiliated to a pension fund. If you are self-employed without a pension fund, you can pay in up to 20% of your net income up to a maximum of CHF 35 280.

And talking of flexibility… are you saving for your own home, for self-employment or just for a carefree retirement? Choose a solution that is as flexible as you need. Choose a strategy that suits you, your income and your plans. With Pando, you set the priorities and we continuously optimise your investment. If something doesn’t go as planned, you can easily adjust your strategy again.

Tip 3: Choose a sustainable solution with a measurable impact.

Would you like to invest your provisions in companies addressing the key challenges of our time?

There are many different ways of integrating sustainability into the core of your 3a investment: Exclude certain sectors from your portfolio. Focus on companies targeting a low-carbon economy. Take advantage of the different options for gearing your 3a investment towards sustainability and your personal values.

And if you’re going to provide for the future sustainably, why not do so in line with the highest standards? Pay attention to the measurability of the sustainable impact. With Pando’s 3a solution, in addition to ESG funds you can invest in environmentally-friendly impact funds that support climate protection, our natural habitats and sustainable building. This allows you to specifically support selected UN Sustainable Development Goals. You decide which sustainability topic you wish to support. In the Pando app, you can track not only the performance of your investment, but also its positive impact on the environment through key figures and tangible examples.