Assets in Switzerland by age: How much money should I have?

Many people in Switzerland are concerned about how much money you should have depending on your age. Do I have more than others? Should I save more? This blog shows the median wealth of the Swiss population by age group and gives practical tips on how to build up and secure wealth at every stage of life.

Wealth is built up not only by earning and saving money, but also by investing in the financial market. Read this blog to find out when and how to start investing. But it’s definitely worth talking to an investment expert about your personal situation.

How much wealth people in Switzerland have by age

Whether you’re just starting out in your career or are already enjoying retirement, it’s important to know where you stand financially. Having a clear idea of how your assets compare to others in your age group can help you to better plan and achieve your financial goals.

The chart shows net household assets. This means: mortgage, debt, and payment arrears are deducted from gross assets in the same way as  assets from Pillars 2 and 3 that are yet to be withdrawn.

What is included in net assets?

 Net assets include:

• Credit balances in all bank and/or post office accounts (excluding Pillar 3a)
• Total value of all investments (equities, bonds, or investment funds)
• Total value of all valuables such as jewelry, vehicles, works of art, or collections
• Value of the primary residence and all other properties, land, and land rights

However, it can be assumed that assets will tend to be underestimated . This is because extremely high incomes are often missing from the data and the data collection methods are experimental in nature. This also applies to the data from the graphic.

Asset performance: You need more than “just” income

The asset chart shows how median assets increase steadily in small steps and increase noticeably in the 55+ age group. Reasons for this include lump-sum payments from retirement provision or inheritances.

A look at the development of average income (see chart) by age group clearly shows that saving and investment behavior are also decisive for long-term asset accumulation.

Gross income includes all income (wages, pensions, social benefits, alimony) before the deduction of compulsory expenditure (social security, taxes, etc.). 

The data make it clear: The difference in gross income between age groups is small until retirement age. Assets cannot therefore be built up solely by means of rising income.

Asset accumulation at any age: How to do it

Asset accumulation is a lifelong task that offers its own challenges and opportunities at every stage of life. Here are some tips on how to build up and secure assets in different age groups.

In your 20s: The first steps in accumulating assets

Your 20s are all about creating the foundation for a solid financial life. Since many young people are only at the beginning of their careers, their assets are often still low. This is the best time to start saving and investing because spending is often not as high as in later stages of life.

• Pillar 3a for pension provision: Even if you are unable to pay the maximum amount into Pillar 3a, you can still take advantage of tax benefits and compound interest.
• Initial investments: Start making your first investments early on. Even small amounts can be invested on the financial market.
• Pension planning: You should also consider precautionary measures in the event of disability or incapacity for work. Comprehensive protection helps you to be prepared for all eventualities.

In your 30s: Accelerate asset accumulation

Your 30s are often marked by major changes such as starting a family or buying a property. This also changes financial planning:

• Continue paying into Pillar 3a: Make use of the tax benefits and build up your pension assets further. Above a certain amount, it’s worth opening a second Pillar 3a account and investing Pillar 3. Depending on your life plan, you should also structure your pension planning differently. For example, women are more likely to have pension gaps in old age, and cohabiting couples have different requirements.
• Targeted investment: Do you have financial goals that you would like to achieve within a few years? Invest your money in a targeted way to build up assets over the long term. To do so, use investment products  that are tailored to your needs.
• Check potential savings: Saving always forms part of building up assets. Check your expenses and use the money saved for investments, for example. Read our articles on this topic: “Seven tips to help you save on your budget” or “Advice: The top savings tips for families”.
• Protection for the family: When starting a family in particular, you should make sure that your loved ones are well protected in an emergency.

In your 40s: Stabilisation and growth

In your 40s, assets usually grow continuously and stability  returns in your life. Now is the time to consolidate your investment decisions and minimize risks.

• Asset accumulation: Review your investment strategy. Has anything changed in your life? Have you inherited and do you suddenly have more money? With asset management solutions such as EasyInvest from AXA, you can manage your investments flexibly. You should also talk to experts in order to review your current strategy.
• Protection against death and disability: Make sure that your pension plans continue to be up to date.
• Saving – even in your 40s: Hundreds of francs can be saved every year in health insurance costs alone. Read the article ”How can I save on health insurance premiums” to find out how to do this.

In your 50s: Preparing for retirement

As you approach retirement , it’s time to re-examine your financial plans. How much money will you need in retirement? Where will it come from?

• Retirement planning: Prepare by making your investment portfolios less risky. Solutions such as the SmartFlex capital plan enable you to invest your money while taking retirement planning into account in your investment strategy. Another key issue that you should consider is how your retirement provision is paid out. Read the article  ”Annuity or lump sum: Which is better?”.
• Real estate planning: If you own a house, you should think about how you want to use it in retirement. Can you stay in the house in old age? Do you want to sell it and move into a smaller apartment? Do you have any descendants for whom an early withdrawal would be possible?
• Protection against death and disability: Check your pension plans and think about your estate.

60+: Secure and enjoy assets

In retirement, the focus is use of assets. The focus should now be on preserving assets in order to secure your standard of living.

• Secure investments: Even in retirement, it can make sense to continue investing in secure investments – especially if you are withdrawing your pension assets as a lump sum or if you inherit money during retirement. For example, check investment products with a payout plan.
• Estate planning: As you get older, you should think about your estate: Who should inherit what? Would you like to pass on certain assets before death?

Build up your assets – get started today

The differences in wealth between age groups are clear and are influenced by a number of factors: income, savings, investments, and inheritance play an important role.

We therefore recommend that you start accumulating assets – regardless of your age group.

If you think you don’t have the money to invest, we can reassure you: Even smaller investments are absolutely worthwhile. And since there are a great deal of potential savings in insurance, you can build up your assets steadily, even with a lower income.