Liberty News – Vested benefits – How to avoid "forgetting" assets

Liberty News – Vested benefits – How to avoid "forgetting" assets

A few statistics quoted recently at an event organised by the VVS, the Swiss pension association, attracted attention: in Switzerland, about CHF 5.1 billion in unclaimed assets are idling on some 830,000 accounts. About three-quarters of these accounts have balances of less than CHF 5,000. The volume of unclaimed assets increased by 11% over last year. The lion's share of approx. CHF 3.7 billion is held with the BVG/LPP Substitute Occupational Benefit Institution.

How do these "ownerless" assets come about? There are many reasons. These pension assets belong to employees who forget to communicate the necessary information and instructions to their occupational benefits institution when they stop working after maternity leave, for example, or when they move or change jobs.

When members leave their occupational benefits institution, they must take the necessary steps to avoid "forgetting" their vested termination benefits. To help them, the Federal Social Insurance Office (BSV/OFAS) has published a comprehensive brochure on its website www.bsv.admin.ch. This useful brochure is available in several languages, including English (“Vested benefits: don’t forget your retirement assets!”).

Members who do not wish to cash in their vested benefits immediately are free to decide how they should be invested. In 2016, the share of vested benefits invested in securities was 13.5% for Switzerland overall. Last year, the percentage rose to 18.4%.

We have observed the same trend and are pleased that our independent and well-established online comparison tool Compare Invest has played a part in encouraging clients to invest in securities. These clients now account for about two-thirds of our client base, and the trend is rising.