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Retirement provision through shares: opportunities and prospects

Is a savings account for retirement better than investing money? Definitely not. Investing at least part of your retirement provision in shares protects your assets against inflation.

Anyone who wants to invest their money safely has a problem: there has been hardly any interest on seemingly safe savings accounts, call money or fixed-term deposits for years. On the contrary: there is even the threat of negative interest rates and loss of value. Saving is therefore not a good deal. Inflation is slowly eating up the money, as the chart below shows.

Why are shares worthwhile as a retirement provision?

Anyone who wants to invest their money safely has a problem: there has been hardly any interest on seemingly safe savings accounts, call money or fixed-term deposits for years. On the contrary: there is even the threat of negative interest rates and loss of value. Saving is therefore not a good deal. Inflation is slowly eating up the money, as the chart below shows.

pcg_inflation_CH_500x500
pcg_inflation_D

In Switzerland, cumulative inflation from 2000 to 2020 amounted to a good 10 %. In Germany, it was as high as 25 % in the same period. So hoarding cash is not a good idea. Instead, you should invest money to preserve value.

Loss of value despite government bonds?

Incidentally, buyers of long-term government bonds must also fear a loss in value – even though the state cannot actually go bankrupt. This is because two factors essentially determine the interest rate and therefore the yield: the probability of default in getting the borrowed money back and the inflation rate. In the event that inflation rises significantly by the time a bond is repaid, its holders will noticeably lose purchasing power.

Fear prevents success and destroys your money. Sounds harsh, but that’s how it is. A savings account is the guarantee of a safe loss of assets.

Martin Peter, COO & Partner

The advantages of an equity investment at a glance

If you want to achieve financial freedom in the long term, you should invest in shares – also for retirement provision. Point Capital shows you the many advantages of investing in shares:

  • Profit from the economy: By investing in a broadly diversified equity portfolio, you can benefit from the growth opportunities of the global economy.
  • Participation in company profits: In contrast to traditional forms of saving, investing in shares allows you to participate in company profits and potential price increases.
  • Higher returns: Experience shows that equities generate higher long-term returns than fixed-interest investments.
  • Compensating for inflation: With a retirement provision in shares, you have the opportunity to compensate for inflation-related losses in purchasing power.

With Point Capital, you can invest your assets optimally and use these advantages for your individual retirement provision. Contact our experts now – it pays to make provisions!

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Correct planning: Which shares are worthwhile for retirement provision?

Quality shares in established companies with stable business models and long-term growth potential are particularly suitable for retirement provision. It is particularly important to spread shares widely. This is known as “diversification”. Optimal diversification reduces the risk of market fluctuations in individual stocks. You should therefore not just buy shares from one sector, but invest in different sectors and markets. This increases the chance of more stable returns.

Invest regularly and for the long term

At Point Capital, we know that shares achieve higher returns than other forms of investment when invested over a long period of time. Private investors therefore benefit from planning the longest possible investment horizon. Regular investments in equities also offer an attractive average price and help to maintain a disciplined investment strategy. They also reduce the risk of missing out on good stock market days.

The right investment strategy is the key to calculable risks and long-term success on the stock market. Rely on Point Capital to achieve optimal results with your investments.

Pension provision with shares: no problem with Point Capital

Point Capital makes it easier for you to save for retirement. Our experts will help you find an investment solution tailored to your requirements, create a balanced equity portfolio and invest your assets securely and profitably over the long term.

Put your retirement provision with shares in the reliable and experienced hands of Point Capital!

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