A new AXA pension study shows: Private pension provision is still treated stepmotherly by young Swiss people. More than half of those under 30 do not have a 3rd pillar because they consider it too early.
Around 66% of young people do not have a 3rd pillar because they consider it premature to make private provisions for old age. This is the result of the AXA Switzerland pension study (PDF), which was conducted this year for the 3rd time in a row. The study refutes the assumption that young people's lack of willingness to make provisions for old age is only due to their financial possibilities. "You can't start saving for old age early enough," says Shelley Niederhauser, a pension and financial advisor at the General Agency Vorsorge & Vermögen Burgdorf. She continues: "It's important to start thinking about what you can invest sustainably in your pension provision as soon as you have completed your vocational training or studies. Because what is often not considered at a young age: a pillar 3a plan can also serve as a capital provider for home ownership or self-employment.
Saving in securities is significantly more popular with young people than with older people
A good 57% of people under 30 use a securities solution, compared with only 38% of older generations. The latter save significantly more frequently in a traditional pillar 3a plan (62%). Overall, saving in securities is much more popular among young people than among the over-30s. Thus, even the former, who do not yet have a securities solution, have at least already looked into it (40%). "In view of today's economic situation, classic savings solutions are a minus calculation in the long term. An investment solution with little risk can at least counteract the inflation effect," says Kristian Kanthak, Head of Private Pension at AXA. He therefore strongly recommends a securities solution, especially for young people with a long-term savings horizon.
Sustainable securities solutions are particularly popular with young people
When it comes to saving in securities, the under-30s generally consider the sustainable investment of their pension assets to be important (58%). As in previous years, the decisive criteria for sustainable securities solutions is that young people want to avoid investments that harm the environment and the climate (83%). Sustainable investing is also part of a modern investment strategy for many under 30s (83%). However, if sustainable investing harms the wallet too much, the young also lose interest: More than half of this age group who actually want to invest sustainably would deviate from it if the returns were not right.
Established providers are preferred over purely digital solutions
Another aspect of this year's AXA pension study is the preference for digital conclusion of pension solutions, which is particularly popular among the under-30s: more than half can imagine taking out a online policy. Among people over 50, the proportion is only one-third. What is clear, is that under-30s are much more likely to consider taking out a pension product online with an established provider among insurers and banks (48%) than with a new, purely digital provider (20%).
About the AXA Pension Study
AXA Switzerland conducted its pension study in spring 2022 for the third time in a row. A total of 1,014 people from German- and French-speaking Switzerland aged between 18 and 65 were surveyed between March 11 and 18, 2022. The study was conducted as an online survey via the intervista Online Access Panel.