Pillar 3a

Pillar 3a, in brief

Pillar 3a is part of individual pension provision. Every franc paid in is deducted from your taxable income, up to an annual ceiling set by the Confederation. In return, the money stays locked in until about five years before retirement, except in specific cases (buying a home, becoming self-employed, leaving Switzerland, disability).

A 3a life insurance policy combines this tax advantage with protection in the event of death or disability, which a simple 3a bank account does not offer.

Your contributions reduce your income tax every year. The accumulated capital is not subject to wealth tax for the duration of the contract. When it is withdrawn, the capital is taxed separately, at a reduced rate.