Are Swiss annuities guaranteed?

My Swiss life insurance claims that it will pay me annuities from the time I turn 70 years old until I kick the bucket. Can I count on this annuity 100%, or is there a catch somewhere?

Hi there,

Life insurance policies which pay out a pension when you reach a certain age are normally based on the Swiss third pillar of retirement savings. They generally provide both a guranteed benefit and a non-guaranteed benefit.

The guaranteed benefit or "face value" of a policy will be paid out when the policy reaches maturity, regardless of the performance of insurance company investments.

Non-guaranteed benefits are dependent on the performance of investments. These may be interest earned on equity in your policy, dividends earned on equities-linked policies, or other performance-based benefits. Interest rates can be adjusted annually and returns on equity investments can fluctuate. For this reason, the part of your benefit comprised of these returns is not guaranteed.

Best regards from Moneyguru

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