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1e pension plan: flexible and individual retirement provision with LGT

Take responsibility for your retirement provision. With the 1e pension plan, you can play an active role in deciding how your pension fund is invested. 1e plans offer you attractive and flexible options for building and optimizing your retirement fund. LGT will help you implement your decisions as effectively as possible.

A well-considered pension plan is absolutely essential for anyone looking to maintain their customary standard of living in retirement. But most of the time the options are limited, and individuals are not able to make their own choices. 1e solutions are different, however. 1e plans give the self-employed attractive options for investing their pension money on an individual and flexible basis. Businesses can set up 1e plans for their employees too – which makes them much more appealing as potential employers.

Who can take advantage of the 1e solution at LGT?

More information A 1e pension plan offers a flexible option for those on salaries between CHF 127,980 and CHF 853,200.

1e pension plans are basically available to those with a salary of CHF 127,980 or higher. As the self-employed are generally free to choose their own pension fund, they may opt for a 1e solution directly. But 1e is obviously an extremely attractive pension option for high-earning employees too. So management team members and business owners really should consider this form of retirement provision for their employees.

Benefits of the LGT pension plan

1e solutions allow you to choose your investment strategy yourself based on the level of risk you are comfortable with personally. A range of different risk profiles is available, so you have the flexibility to choose one that suits your individual preferences and expectations. There is always complete transparency regarding the performance, returns and administrative costs of your pension portfolio – something which traditional pension solutions (e.g. collective foundations) do not tend to offer. And last but not least, you benefit from the fact that voluntary contributions are deductible for income tax purposes.

For employees/self-employed persons

 

  • Flexibility to choose own investment strategy
    > Right to take responsibility
  • Complete transparency regarding performance, returns and administrative costs
  • Tax-friendly
  • Improved retirement benefits thanks to additional savings and surpluses
  • Transfer of securities to a private custody account upon retirement

For businesses

 

  • Flexibility for employees to choose their investment strategy
  • Complete transparency regarding performance, returns and administrative costs
  • No provisions for longevity risks – retirement benefits are only paid out as capital
  • Optimization of returns on retirement capital for employees
  • Businesses which offer an excellent pension solution make attractive employers

1e pension plan from LGT and Liberty Pension

For the purposes of our 1e offer, we collaborate with the independent pension platform known as Liberty Pension Ltd. www.liberty.ch. With its modular architecture, Liberty Pension offers a wealth of innovative and individual services and products for the 2nd and 3rd pillars of the Swiss pension system, including Bel Etage and executive solutions for supplementary contributions (1e solutions) and association-type solutions for freelancers. If you opt for our 1e solution, you will enter into a contractual relationship with Liberty Pension Ltd. and ask it to invest in an investment solution actively managed by LGT.

The right investment strategy for your 1e pension plan

For your 1e plan, you can choose from three different investment strategies offered by LGT:

 

  • the LGT Pension Plan – Portfolio Management Mandate
  • the LGT Pension Plan – Fund Mandate and
  • the LGT Pension Plan – Alpha Indexing Fund

Which of these three investment strategies is the right one for your 1e pension will depend on the capital you have available.

With the Portfolio Management Mandate and Fund Mandate, you can also – depending on the level of risk you are comfortable with and able to carry as an individual – choose any one of five different risk profiles (low-risk, income, conservative, balanced, growth).

Overview of 1e investment strategies at LGT

  • LGT Pension Plan – Portfolio
    Management Mandate
  • LGT Pension Plan – Fondsmandate
  • LGT Pension Plan – Alpha
    Indexing Fund
  • Available for investment pots of CHF 750,000 or above.
  • Suitable for investors who want to be responsible for investing their own pension money – based on an investment strategy that suits their individual needs.
  • Our investment specialists will put together an individual portfolio for you from a wide variety of investment vehicles, monitor how the assets perform and manage these in accordance with your specifications within the parameters of the OPO 2 (Occupational Pension Ordinance) investment guidelines.
  • You can choose from five different risk profiles. You can also – depending on the level of risk you are comfortable with and your particular investment objectives – issue individual investment instructions.
  • Available for investment pots of CHF 10,000 or above.
  • Suitable for investors who want to be responsible for investing their own pension money – in line with one of our predefined investment strategies.
  • Our investment specialists implement your defined investment strategy, within the parameters of the OPO 2 (Occupational Pension Ordinance) investment guidelines, via selected fund investments. The asset classes used are money markets, bonds, equities and alternative investments.
  • Five different risk profiles are available to choose from. These are implemented in the form of mandates and placed with Liberty Pension Ltd.
  • Availability: no lower threshold in terms of assets.
  • Suitable for clients who would like to invest in a robust and broadly diversified portfolio – even with relatively small amounts of money.
  • The LGT Alpha Indexing Fund is an actively managed mixed fund, which invests worldwide in a diverse range of money markets, bonds and equities in various currency segments as well as alternative investments and real estate. The bond component varies between 30 and 60 percent, the equity component between 10 and 50 percent and the component accounted for by the reference currency (Swiss franc) is at least 70 percent.

OPO 2 investment guidelines: OPO 2 stands for the Ordinance on Occupational Old Age, Survivors’ and Invalidity Pension Provision. The investment guidelines as per OPO 2 define the maximum permissible component allocated to securities and the minimum share that needs to be in Swiss francs.

Five risk profiles for your 1e investment strategy

The two strategies known as the LGT Pension Plan – Portfolio Management Mandate and the LGT Pension Plan – Fund Mandate offer you five different risk profiles. Depending on the level of risk you are comfortable with and able to carry, you can therefore devise an investment strategy that reflects your individual preferences and needs.

Growth Plus

The growth mandate plus, including alternative investments, makes a diverse range of investments worldwide in money market instruments, bonds and equities – as well as in alternative investments, particularly hedge funds, real estate, commodities and precious metals. There is significant overweighting in equities.

Growth

The growth mandate, including alternative investments, makes a diverse range of investments worldwide in money market instruments, bonds and equities – as well as in alternative investments, particularly hedge funds, real estate, commodities and precious metals. There is overweighting in equities.

Balanced

The balanced mandate, including alternative investments, makes a diverse range of investments worldwide in money market instruments, bonds and equities – as well as in alternative investments, particularly hedge funds, real estate, commodities and precious metals. The aim is to achieve a relatively good balance between fixed-interest investments and equities.

Conservative

The conservative mandate, including alternative investments, makes a diverse range of investments worldwide in money market instruments, bonds and equities – as well as in alternative investments, particularly hedge funds, real estate, commodities and precious metals. There is a degree of overweighting in fixed-interest investments.

Low-risk

As per OPO 2 art. 53a, the low-risk mandate only invests in cash (Swiss francs) and certain types of claims (bonds) with good credit ratings. The average term of all claims will not exceed five years. Investments are only ever made in Swiss francs or hedged foreign currencies.

Your contact for your 1e pension plan

This is an ideal opportunity for you to tailor your pension solution to your assets as a whole and optimize returns on your retirement capital.

If you are interested in our 1e pension plans, then get in touch with us. Claudio Chicchini, Sector Head at LGT Bank Switzerland, is an expert in pension solutions and will show you how to achieve your personal and individual pension objectives. He would be delighted to hear from you.

Claudio Chicchini
Sector Head, LGT Bank Switzerland
Phone 044 250 83 43
E-mail