Review on 3rd pillar Generali Previdenza Flex


Review on 3rd pillar Generali Previdenza Flex

Third pillar type:

Insurance 3rd pillar linked to investment funds and traditional guaranteed capital.
Available as pillar 3a and 3b. Minimum premium CHF 50/month

Brief Description

In January 2024, Generali launched its new third-pillar product Previdenza Flex and, in our opinion, it is a good product for those looking mainly for security, but without neglecting some return prospects thanks to the already proven Multi Index fund portfolios.
This is a format already present in other companies, that is, the combination of a "guaranteed" security asset (traditional product), and a return asset invested in funds.
Clearly, in addition to the savings process, the product offers everything you would expect from a third-pillar insurance, i.e., death benefits, disability annuities, etc.

How does it work?

The operation of this product revolves around two basic components: the Security Asset and the Performance Asset. 
The Security Asset is, in practice, a classic insurance component, with a technical interest rate of -1%, which has to be offset by surplus holdings, which are currently 1.5% (February 2024), so today yields 0.5% net.  
The Performance Asset, on the other hand, is composed of a portfolio of investment funds and thus is not remunerated with an interest rate, but with the performance of the funds themselves, if any. 
This product's Performance Asset has some advantages over similar competing products:
For example, Multi Index portfolios are passively managed and much more diversified than the competitors.
In addition, the product allows for switching portfolios of funds during the term.
So, with Generali Previdenza Flex you will have to choose how much to allocate (as a percentage) to the security asset and how much to the performance asset.
So, for example, if you choose a 50%-50% strategy between the two elements, at the end of the contract, Generali will liquidate the security and performance assets you have accumulated over the years, but not less than the guaranteed capital. 
Please note: the guaranteed principal is less than what you have paid in over the years. 
One very positive thing about this product is that you can change the percentage between security and performance at any time.

Given all the variables and possibilities that this product offers, in order to have a third pillar that fully satisfies you, thorough and competent advice is essential.

Positive aspects of Generali Previdenza Flex:

- The product offers many possibilities, allowing you to customize it to your measure. 
- Possibility to change the percentages between security and performance. 
- Possibility to choose from different fund portfolios.
- Minimum guaranteed capital

Negative aspects:

- The security asset has a negative technical rate.


In our opinion, the third pillar Generali Previdenza Flex is a good product for those seeking greater security. Clearly, prioritizing security comes at the expense of performance, so the way the product should be set up is crucial. 
Finally, it must be said that, as with all investment products, your satisfaction will depend, above all, on the quality of the advice.

How to recognise good advice?

Here are a few points to pay attention to: 
1) Is the intermediry registered to the FINMA intermediary register? 
2) Is the intermediary able to explain to you in detail the composition and functioning of the product? 
3) Have you chosen the investment strategy together? 
4) Has it been explained to you that in addition to gains, there may also be losses? 
5) Was the offer made taking into account your current first and second pillar coverage? 
6) Did the intermediary give you the full offer and time to evaluate it?
If you need advice to plan your 3rd pillar, please contact us.


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