No, you don’t pay an administration fee on the cash part. The administration fee of 0.52% (at most 0.44% p.a. due to the fee cap) is only charged on the invested portion of your pension assets. Your retirement savings account is currently bearing interest of 0.1%. This interest rate is slightly lower than with the classic 3a account of WIR Bank, the “Terzo Konto”.
The reason for this is that we do not want to invest our clients in bonds in the current low interest rate environment under any circumstances, as these are currently yielding a negative return after costs. In addition, bonds carry the risk of losses if interest rates rise. With the slightly lower interest rate, we were able to find a good solution with the WIR Bank, which allows everyone to benefit. Our clients have a positive return, pay no fee on the cash portion (a bond investment would be charged) and avoid interest rate risks. For its part, the WIR Bank can attract these funds at a slightly lower price and thus also benefits. Last but not least, we are happy to be able to offer our clients a guaranteed positive return on investment. A classic win-win situation!
PS: If someone wants to optimize further, you can only make the part of the contribution that you want to invest in equities and then choose the Global / Switzerland / Global Sustainable 100 strategy. The share that you then want to hold in cash can be invested with the bank of your choice; for example, in the classic Terzo account. Unfortunately, however, this is accompanied by a little extra effort and the pure equity exposure will then of course fluctuate much more – this would always have to be considered on a consolidated basis.