The reform of the subsidised old-age provision noticeably shifts the attractiveness between layers 1, 2 and 3. Contracts that made sense years ago may be the worse choice today—especially with a high expense ratio and low stock ratio.
Important: Quitting is rarely the right answer. Often, exemption from contributions, change of provider or an adjustment of the investment strategy within the existing contract are the economically better solution.
We enforce existing contracts against the new rules and show the net return on costs, promotion and later taxation – not just the gross illustration of the provider.
What you should do now
- Check existing contracts for expense ratio and share ratio
- Check contribution exemption before termination
- Consider promotion and later taxation together