Pillar 3a – tied pension provision

The Swiss pension system is based on three pillars: the state pension (AHV/AVS/ OASI - IV/AI), the occupational pension (pension fund) and private pension provision (pillars 3a and 3b). Pillar 1 – the state pension – ensures your financial security after retirement. It also supports you if you become disabled and provides your survivors with minimum-subsistence-level support in the event of your death. As the Swiss population is getting older, pension levels are falling. Pillar 2 refers to the occupational pension funds. All employees aged 18 and over with a minimum annual income of CHF 22,050 are insured (compulsory up to the upper limit of CHF 88,200). Pillars 1 and 2 cover around 60% to 70% of the final salary. Pillar 3 – private pension provision – provides an opportunity to secure your own financial future and make up any shortfalls in your pension provision.

In pillar 3, you can choose between flexible 3b and tied 3a schemes.

Pillar 3b is a flexible form of pension provision in which you decide yourself how much to pay in and whether the money should be invested in real estate, shares, etc. The disadvantage, however, is that your deposits are not always tax-deductible.

The state-supported pillar 3a is particularly interesting because it enables you to deduct up to CHF 7,056 (from 2023) from your taxable income (self-employed people can actually deduct up to CHF 35,280 from 2023). If savings capital is accumulated in pillar 3a, it can be drawn without special reasons at the earliest five years before the standard AHV/AVS/OASI retirement age. You can withdraw it early in exceptional cases, as defined by law, such as to buy a house in which you will then live.

As part of pillar 3a, we can offer you our CONVITA pension provision solution. You can take out CONVITA^save and CONVITA^risk policies separately or in combination. You decide flexibly at any time which modules are important for you.