SNB interest rate movements and what they meant
The Swiss National Bank cut the policy rate three times during 2024, bringing it from 1.75 percent at the start of the year to 1.0 percent by December. Swiss savings account rates followed, declining from modest positive levels to near-zero again by year end. For anyone still holding substantial savings in cash accounts, this made the opportunity cost of not investing more visible and more costly.
Pillar 3a: contribution limits and market performance
The Pillar 3a maximum contribution limit for 2024 was CHF 7,056 for employees with an occupational pension. For those who contributed the maximum and invested in a globally diversified equity strategy through VIAC or Finpension, 2024 returns on the equity allocation were strong, driven by continued US market performance and a broad international equity rally.
Health insurance premiums rose again in 2024
Swiss health insurance premiums increased again in 2024, continuing a multi-year trend of annual premium inflation. The average national premium increase was approximately 8.7 percent for 2024. For Swiss residents who did not actively compare and switch providers at the November 30 deadline, this increase was simply absorbed as a higher monthly cost. Those who switched to the lowest-cost provider in their canton offset a portion of the increase through premium savings.
What to prioritise going into 2025
Three priorities stand out for Swiss immigrant investors entering 2025. First, make the Pillar 3a contribution early in the year rather than in December. Second, review health insurance before November 30 and switch if the savings justify it. Third, if you have been carrying consumer debt or delaying investment in favour of cash accumulation, 2025 is the year to address this. The SNB rate environment means cash is again earning near nothing while equity markets continue to offer meaningful long-run expected returns.