Retirement saving apps established themselves in Switzerland some year ago, and are drawing increasing number of retirement savers. New online pillar 3a and pillar 2 (vested benefits) solutions continue to launch, while others have already disappeared.
As with regular online asset management services, the costs of retirement saving apps are made up of two main components: A flat fee for asset management, and the fees charged by the funds or other investment vehicles used. With some retirement saving apps, the fund fees are included in the flat asset management fee. Others have the exact opposite arrangement, only passing on the fees charged for the used investment vehicles. In every case, you should always account for both of these fees. Some service providers, the fees vary depending on which investment strategy and investment vehicles you use.
Online retirement asset management services are cheaper than conventional retirement funds
The total costs of retirement saving apps range between 0.13 percent and 1.2 percent per year. “Compared to classic retirement funds, many retirement asset management services are much cheaper,” observes moneyland.ch managing director Benjamin Manz. The fees charged by conventional retirement funds average more than 1 percent per year. But there are specific retirement funds that can cost as little or less than some retirement saving apps. It is worth it to compare.
Table: The costs of digital retirement saving solutions
|
Retirement asset
management service
|
Annual flat fee for
asset management
|
Annual fees for
investment vehicles (TER)
|
Total costs
|
|
bench (GLKB)
|
Max. 0.8%
|
Included
|
Max. 0.8%
|
|
Descartes
|
0.65%-0.8%
|
Included
|
0.65%-0.8%
|
|
finpension
|
0.39%
(Vested benefits:
0.49%)
|
0%-0.03%
|
0.39%-0.42%
(Vested benefits:
0.49%-0.52%)
|
|
fluks 3a*
|
0.6%
|
0%
|
0.6%
|
|
frankly (ZKB)
|
0.44%
|
0%-0.04%
|
0.44%
|
|
freeme (GLKB)
|
0.55%
|
0.2%-0.65%
|
0.75%-1.20%
|
|
GKB Gioia 3a
|
0.1%
|
0.62%-0.92%
|
0.72%-1.02%
|
|
Inyova
|
0.8%
|
Included
|
0.8%
|
|
LibertyGreen
|
0.4%
|
Included
|
0.4%
|
|
Selma Finance
|
0.68%-0.42%
(depending on your
account balance )
|
0.22%
|
0.64%-0.9%
|
|
Swissquote 3a Easy
|
0.6% (free for
the first 6 months )
|
Included
|
0.6% (free for
the first 6 months )
|
|
Tellco Bank
|
Keine
|
0.61%-0.74%
(depending
on the fund )
|
0.61%-0.74%
|
|
True Wealth
|
Keine
|
0.13%-0.21%
|
0.13%-0.21%
|
|
Viac
|
0%-0.44%
|
Included
|
Max. 0.44%
|
|
Yuh
|
0.5%
|
Included
|
0.5%
|
Sorted alphabetically. * fluks 3a in combination with online banking from the Luzerner Kantonalbank.
How do I choose the right retirement saving app?
The costs are an important criterion for selecting a retirement asset management service, but they are not the only criterion. Other criteria include the selection of funds and other investment vehicles, the user-friendliness of the web portal and app, and the quality of the customer service. It is worth taking a look at various apps and looking at customer ratings, when available, in order to determine the user-friendliness of apps and portals. If sustainable investments are important to you, you can limit your selection to service providers with options for sustainable investing.
Pillar 3a: Investment solution or savings account?
Retirement asset management services generally give you the option of investing in stocks and other asset classes – often using exchange-traded funds (ETFs). As with all stock investments, you should only invest if you can hold the investments for a long time. Ideally, the investment term should be at least 8 to 10 years. While the value of your assets will decline in some years, over long terms, well-diversified stock investments have historically performed much better than savings accounts. The same applies to investing with retirement savings apps. “If stock investments tend to keep you up at night, or if you are nearing retirement age, then you should consider using pillar 3a savings accounts instead,” says Manz.
More on this topic:
Compare Swiss retirement funds now
Retirement asset management services compared
Pillar 3a savings account comparison
Vested benefits account comparison
Deal of the Day 
