How to use your bonus at age 30, 40 or 50

A bonus is a sum of money paid to you at your employer’s discretion, on top of your normal salary and on certain occasions (for example, as a reward for a job well done or for a special event).

Before deciding how to use your bonus, it is important to determine your long-term goals and assess your risk appetite: do you want to save, invest, or prepare for retirement? Have you already reached some of your goals and are you more interested in treating yourself? Depending on how far you have gotten in achieving these goals, you can take different approaches, which may also depend on your age.

At age 30: start your projects

• If you haven't yet built up enough savings for your future plans (travel, studies, expatriation, etc.), it may be better to put your bonus into a savings account.
• It may also be wise to reduce some of your debts by focusing on high-interest debts (car leasing, personal loans, student loans, etc.).
• It is worth considering opening a 3rd pillar account as soon as you start working because of the substantial tax advantages it offers you. The amount saved remains blocked until retirement to guarantee you additional funds, but can still be used in certain specific cases: plans for a future expatriation or property investment, for example.
• Lastly, it's important to treat yourself from time to time and to enjoy life! However, be mindful not to spend too much, which could jeopardise your financial stability in the long term.

At age 40: invest for the future

• Do you have children? Why not put some of your bonus into a savings account dedicated to children , and start planning for their future?
• You can always keep learning! Use your bonus to enhance your professional skills and invest in yourself by taking training courses that will help you in your career or in your career transition.
• Would you like to become a homeowner and buy your primary residence? Whatever your real estate plans are, review them with our advisors who will help you realise them by guiding you in how best to build up your capital.
• At age 40, you are probably closer to mid-career, and starting to think about planning for your retirement. If you haven't already done so, it's a good idea to open a 3rd pillar account and to pay in the maximum amount for the current year: payments into your pillar 3A are deductible from your taxable income*, up to a certain limit. The higher the amount paid in, the better your tax savings! You can also buy into your 2nd pillar: to find out about all the advantages (tax, property investment, expatriation, etc.), talk to our banking advisors.
• If you have long-term goals, you could also consider building a portfolio of investment funds starting at CHF 100, or invest in investment themes that align with your values (ecology, humanitarianism, digital innovation, etc.).
• Lastly, it's important to treat yourself from time to time and to enjoy life! However, be mindful not to spend too much, which could jeopardise your financial stability in the long term.

At age 50: consolidate your assets

• You're at the age where you probably have to look after your children as they enter adulthood, as well as your parents who may need specialised care or will need it in the near future. You may also want to put money aside for your own healthcare needs. Saving still makes sense; it is worth exploring which type of savings account will best suit your needs.
• At age 50, it is still not too late to open a 3rd pillar account to optimise your tax situation. Contribute the maximum amount for the current year to benefit from attractive tax savings: payments into your Pillar 3A are deductible from your taxable income*, within certain limits. The more you pay in, the more attractive the savings! Crédit Agricole next bank also offers you an open-architecture solution in investment funds. You can also buy into your 2nd pillar: to find out about all the advantages (tax, property investment, expatriation, etc.), talk to our banking advisors.
• Do you want to take early retirement? In order to prepare for it, it’s important to consider various elements: estimate the budget required after the end of your professional activity; take stock of your 2nd and 3rd pillars, and find out what the terms and conditions of the 1st pillar are... To make things easier for you, consult our wealth planners; they can help you take stock, start taking the necessary steps, and prepare for this new chapter with peace of mind.
• If you have long-term goals, you could also consider building a portfolio of investment funds starting at CHF 100, or invest in investment themes that align with your values (ecology, humanitarianism, digital innovation, etc.).
• Lastly, it's important to treat yourself from time to time and to enjoy life! However, be mindful not to spend too much, which could jeopardise your financial stability in the long term.

Whatever your age, it's important to plan the use of your bonus carefully, taking into account your personal situation, so as not to compromise your long-term goals.

Not sure how best to proceed? Our banking and wealth management advisors are at your disposal to help you prepare for the realization of your plans.

_{*Depending on the canton and your tax status.}