What is a third pillar?
The third pillar is a voluntary savings intended to supplement AVS (first pillar) pensions and the BVG (second pillar). It is divided into two categories: pillar 3a, tax-efficient but with withdrawal restrictions, and pillar 3b, more flexible but with no real tax advantages. The pillar 3a is particularly popular for its ability to reduce the tax burden while preparing for retirement.
Pillar 3a in banking VS insurance
The characteristics of a Pillar 3a bank or insurance policy vary, and depend on a number of factors such as payment flexibility, potential returns and the guarantees offered.
Pillar 3a banking
The Pillar 3a solutions offered by the banks offer a wide range of benefits. flexibility and are often accompanied by lower fees. They generally allow you to invest in two financial productsa pension accountwhich is a form of interest-bearing savings account, as well as pension fundinvested in various securities. This last option offers a better return but also presents risks.
In addition, Pillar 3a bank accounts are generally more attractive. liquidsThis means that withdrawals can be made easily when needed.
Benefits
Funds invested in a Pillar 3a bank account are generally more attractive than those invested in a Pillar 3a bank account. liquids than those invested in insurance products. You can access your funds more easily when you need them, although restrictions still apply.
What's more, by investing in securities, you have the possibility of making yields than traditional savings accounts, especially over the long term.
Disadvantages
Unlike insurance products, Pillar 3a bank accounts do not include a additional warranties in the event of disability or death. You won't have any built-in risk coverage.
In addition, returns on investments in securities depend on market fluctuations, which can lead to a loss of value. losses of all or part of the money invested.
Pillar 3a banking: for whom?
Pillar 3a banking is particularly suited to individuals who are comfortable with portfolio management and have a good tolerance for risk. If you want to be able to reallocate your investments according to changes in the market or your financial situation, this option will also suit you best.
Pillar 3a in insurance
Taking out a Pillar 3a with an insurance company offers a combination of safety and performance. Insurance companies don't just offer classic pension solutions; they also offer mixed products that can be advantageous over the medium and long term.
Insurance products also offer options for flexible investmentIn addition, we offer a range of new products, allowing policyholders to choose between capital-guaranteed and unit-linked pension policies.
Benefits
3a insurance products offer more than safety compared with bank accounts. In fact, they often include guarantees such as "waiver of premiums in the event of disability". This means that if you become disabled and can no longer work, the insurance company will pay your premiums, ensuring the continuity of your savings.
One of the great advantages of insurance products is the possibility of taking out a policy with a fixed term. retirement capital guaranteed. This warranty means that you will receive at least the sum insured when the contract matures, regardless of market fluctuations. This provides additional security against capital loss, and allows you to plan your retirement in a more predictable way.
Some insurances also offer other benefits such as profit sharing, and protection against risks such as disability or death.
Disadvantages
Insurance products are often less flexible than those offered by banks. Once you have taken out an insurance policy, it is difficult to change the terms of the contract or reallocate your funds to other investments. The conditions of withdrawal are also stricter.
Insurance products generally include management fees higher than Pillar 3a bank accounts. These fees can include administrative costs, commissions and insurance premiums, which can reduce the net return on your savings.
Finally, it's important to remember that yields insurance products are generally more low than investments in securities offered by banks.
Frequently Asked Questions
What is Pillar 3a?
Pillar 3a is a component of the retirement provision in Switzerland. It offers tax advantages to encourage individuals to save for retirement. It can be taken out with a bank or an insurance company.
Is it possible to combine a Pillar 3a bank account with an insurance policy?
Yes, it is possible to divide your Pillar 3a between bank accounts and insurance products in order to benefit from both the flexibility and warranties more.
What tax deductions are available under Pillar 3a?
Pillar 3a contributions are tax-deductible up to a maximum of 7,056 francs for salaried employees. Returns generated under Pillar 3a are tax-free during the savings period, and the capital paid in at maturity is taxed at a reduced rate.
What happens in the event of early withdrawal of Pillar 3a funds?
Early withdrawal of Pillar 3a funds is possible in certain situations, such as the purchase of your own home. principal residence, the final departure of Switzerland, or the beginning of a self-employment.
