Pillar 3a is an essential component of the Swiss pension system, also known as linked individual pension provision . This is a form of voluntary savings intended to supplement the benefits of the first two pillars (AVS/AI and LPP professional pension provision).

Pillar 3a allows individuals to build up capital for their retirement while benefiting from significant tax advantages .

Income supplement for retirement: With the reduction in AVS and occupational pension benefits, Pillar 3a makes it possible to maintain a comfortable standard of living after retirement.

Reduction of the tax burden: The tax deductions granted for contributions to Pillar 3a make it possible to reduce the amount of taxes payable.

Financial security: Provides protection for you and your loved ones in the event of incapacity to earn or death.

The maximum amount you can pay into Pillar 3a depends on your professional status. Here are the limits for the year 2024:

For people with paid employment (insured in the 2nd pillar) :

The maximum payment amount is CHF 7,056 per year.

For people without salaried or self-employed activity (not insured under LPP) :

The maximum payment amount is CHF 35,280 per year, or up to 20% of net income from self-employment.

You can start making payments into Pillar 3a as soon as you have income subject to AVS. This means that people engaged in gainful activity (employed or self-employed) can start contributing from the start of their professional career.

Benefits of starting early:

Savings Growth: The sooner you start contributing, the more time your savings have to grow through compound interest and investment returns.

Cumulative tax benefits: By contributing each year, you benefit from tax benefits over a longer period of time, which can significantly reduce your overall tax burden.

Early preparation: Saving regularly from the start of your career helps you better prepare for retirement and achieve your long-term financial goals.

Conclusion: starting to make contributions to Pillar 3a as soon as possible is a wise strategy to maximize your retirement savings and benefit from tax advantages. Whether you are employed or self-employed, you can open a Pillar 3a account as soon as you have an income subject to AVS and start building your financial security for the future.

Pillar 3a funds are primarily intended for retirement and are therefore subject to strict withdrawal conditions. Here are the situations in which you can withdraw Pillar 3a funds:

Retirement:

Ordinary retirement age: You can withdraw the funds no earlier than five years before the ordinary AVS retirement age.

Extension: If you continue to work after ordinary retirement age, you can defer withdrawal for up to five years after that age.

Purchase of principal residence: you can withdraw funds to finance the purchase, construction, or repayment of a mortgage on your principal residence.

Permanent departure from Switzerland: if you permanently leave Switzerland, you can withdraw your funds from Pillar 3a.

Starting a self-employed activity: if you start a self-employed activity and you are no longer subject to professional pension provision (2nd pillar), you can withdraw your funds to invest in your business.

Disability: in the event of total and permanent incapacity to earn, you can withdraw your funds from Pillar 3a.

Conclusion : Pillar 3a offers limited flexibility for withdrawals before retirement, but these options nevertheless make it possible to meet specific and important needs, such as the purchase of a main residence or the launch of an independent activity. By understanding these conditions, you can effectively plan the use of your Pillar 3a funds.

In the event of death, the savings amount or the insured death benefit goes to the spouse or registered partner. Otherwise, the legal order of succession applies.

In Switzerland, there is no limit to the number of Pillar 3a accounts you can open. It is permitted (even wise) to hold several 3a accounts with different financial institutions, such as banks or insurance companies.

Why open multiple Pillar 3a accounts?

Optimization of retirement withdrawals: Having multiple accounts allows withdrawals to be spread over several years, which can reduce the tax impact since Pillar 3a withdrawals are taxed separately from income and generally benefit from reduced rates.

Diversification of investments: Different institutions may offer various investment options (savings accounts, mutual funds, etc.). Having multiple accounts allows you to diversify your investments and reduce risk.

Increased Flexibility: With multiple accounts, you can adjust your saving and investing strategies based on your financial goals and risk tolerance.

Conclusion : you can hold as many Pillar 3a accounts as you want without exceeding the deductible maximum. This strategy can provide benefits in terms of tax planning, investment diversification and financial flexibility. However, it is important to manage your accounts carefully to maximize these benefits and avoid complications.

Unlike pillar 3a which is linked , pillar 3b is a free pension . This means that it is not linked to retirement and can be used in particular as a medium or long-term savings objective.

Pillar 3a and Pillar 3b meet different needs in terms of individual pension provision. Pillar 3a is ideal for those looking to benefit from tax benefits while saving for retirement in a disciplined manner. Pillar 3b offers more flexibility and is suitable for more varied savings objectives, without the restrictions linked to withdrawals. Depending on your financial objectives and your personal situation, you can choose one or the other, or even combine the two for a complete pension strategy.

No . As soon as you take out the insurance via the Primes.info or Prevoyance.info platform, you maintain a direct link with the chosen insurance company.

No . Our services are 100% free and above all no extra premiums or hidden costs.

No . Premiums and insurance benefits are identical to those offered by different insurers. Whether you subscribe to a 3rd pillar directly or through our platform, you maintain exactly the same conditions and advantages.