With Zurich's 3a pension funds, you can build up assets flexibly – and save taxes year after year. You can choose how your money is invested and the amount you pay in each time.
With us, opening your 3a pension custody account is quick and straightforward – it just takes five minutes, and there's no subscription fee. Just have your ID on hand and you're ready to go.
Our funds are selected by independent experts. Browse different investment strategies and choose the one that perfectly fits your needs. We have been successful in this field for many years.
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An insurance contract is always concluded with a fixed term. That is, you sign a contract with the insurance company that runs until you retire. This helps you to actually achieve your retirement savings goals. With a pension custody account, on the other hand, you are more flexible: you always have the freedom to decide whether you want to pay in or use the money for other purposes.
The second significant difference is risk protection. With an insurance solution, you can insure your family in the event of death or protect yourself in the event of disability. With a pension savings custody account 3a, only the balance saved to date is left behind – but no additional death cover is provided.
In the case of a policy with an insurance company, switching between securities and interest is not as easy as it is with a bank account solution. Banking solutions usually provide separate opportunities to invest in securities. For example, the assets flow into a fund that is broadly diversified and therefore provides a certain degree of security while also offering opportunities for returns.
This depends on various factors, such as your income, place of residence, the amount you have paid in and your status: whether you are an employee with a pension fund or self-employed without one.
Early payment from Pillar 3a is possible in the following cases:
m. Permanently leaving Switzerland: If you are definitely emigrating, then you can have your retirement capital paid out.
n. Self-employment: If you become self-employed and are therefore no longer affiliated to a pension fund, you can have the 3rd pillar paid out in the first year of self-employment.
o. Disability: If you draw a full IV disability pension, you can have your pillar 3a credit balance paid out, provided you are not already receiving disability benefits from it.
p. Owner-occupied residential property: If you wish to acquire residential property, repay mortgage loans or acquire share certificates in housing cooperatives, you can have your pillar 3a assets paid out.
Ordinary drawing is dependent exclusively on age. Pillar 3a assets can be drawn at the earliest five years before the normal retirement age (currently 59 for women, 60 for men). If you continue to work, you may continue with pillar 3a for a maximum of five years beyond the normal retirement age.
Pillar 3a offers a special, tax-privileged form of saving. The contributions made can be deducted from income, which thus reduces the tax burden. The legislator has provided for this in order to motivate the working population to take their pension provision into their own hands.
The pension system in Switzerland is divided into three pillars. Pillar 3 is used for private retirement provision (3a and 3b); this is recommended for maintaining your accustomed standard of living after retirement. Pillar 3a is also referred to as a restricted pension plan and is deemed tax-deductible by the Confederation, as it primarily serves the purpose of retirement provision. Pillar 3b is also referred to as an unrestricted pension plan, since you can dispose of it more freely, there is no maximum amount, but the amounts cannot be deducted from taxes.
You can invest funds with tax privileges via your retirement savings account. There are pure account solutions where money is held in an account and interest is paid on it, or retirement accounts that are linked to a securities account and used to buy fund units. The fund units are then held in a separate custody account.
If you already have a pension fund, you may pay in a maximum amount of up to 7,056 Swiss francs (as of 2023). If you are self-employed and do not have a pension fund, you may pay a maximum of 35,280 Swiss francs or a maximum of 20 percent of net income into a pillar 3a account. These payments can be deducted from your taxable income. This means you can save on taxes.
Pillars 3a and 3b after a divorce: If a married couple has not agreed to a separation of property, pillar 3a assets saved during the marriage are divided between them.
In the event of death, the amount saved usually go to the spouse or registered partner. If no such person exists, the following persons are beneficiaries:
1. direct descendants or persons who were largely supported by the deceased
2. the person who lived with the deceased without interruption for the last five years until death
3. the person responsible for maintaining joint children
The parents, siblings and other heirs of the deceased are also beneficiaries in later order.
Our 3a pension planning solution offers you real flexibility, as you decide how much - to the amount permitted by law - and when you want to pay into your pension savings custody account. Set up automatic monthly or semi-annual payments, or make individual payments according to your needs and point in time. You are not bound to any payment plan.
Choose from five investment strategies according to your risk tolerance and investment horizon, which mainly vary in terms of their equity share You can switch the investment strategy of your 3a pension custody account once a year at no extra charge.
You will find the link to the current prices (c-class) below: zurich.plfundnet.com
Zurich Invest Ltd (established 1998) is a major financial services provider in the Swiss asset management market with over CHF 41 billion in assets under management. She is the managing director of the Zurich Invest Bank Foundation, provider of the 3a pension custody account.
Pension contributions may be deducted in the tax return when specifying taxable income. This reduces your tax burden!
It's good to know that our legislator says the following:
Anyone already making provisions as part of pillar 2 (pension fund), you can deduct a maximum of 7'056 Swiss francs (as of 2023) per year from your income.
If you are not a member of a pension fund you can deduct 20% of your earnings from gainful employment, up to maximum of 35'280 (as of 2023).
During the policy term you also do not pay any wealth taxes on the 3a credit balance, and when the assets are paid out, you benefit from a reduced tax rate.
We follow a sustainable investment philosophy and promote sustainable investments; our responsible investment process is based on the 3-pillar approach. This approach includes "ESG integration", "impact investing" and "joint progress".
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Knowledge
The 3 pillars concept – an overview
What are the three pillars actually? Who pays how much into them? What actions do I have to take? The three pillars concept can be confusing. In this article you will find an overview of the Swiss pension system.
Are you uncertain whether you should open your pillar 3a with a bank or an insurance company? We have listed the common features and differences for you. Find out which retirement provision solution is the better fit for your requirements.
Why is it worth paying into pillar 3a? When should you start saving? And what is the difference between a saving and an insurance solution? The third pillar is an important element in retirement provision. Here, you will find the most important information on this subject.
Robust retirement provision will benefit you now and in the future. We show you how you can best leverage all three pillars. The sooner you start saving for your retirement, the more you will get out later!
The 3rd pillar is divided into pillar 3a and pillar 3b. In this article, you will find out about the important features of the two pillars, how they differ and which one you should invest in first. You will also find answers to the most frequently asked questions on the subject.
Are you making the best of your precious assets? Our online check will give you an initial personalized overview of income protection, pension planning and wealth accumulation.
