Pension Savings 3a

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.

More info in our article: Bank or insurance: The differences in Pillar 3a

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.

More info in our article: Bank or insurance: The differences in Pillar 3a

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.

Each account must be closed in full. A customer can open several accounts; these can then be drawn from in stages.

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.

One account is opened per strategy. A maximum of five accounts are possible with Zurich Invest Bank Foundation.

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.

More info in our article: Comparison of Pillars 3a and 3b – what are the differences?

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 7,258 Swiss francs (as of 2025). If you are self-employed and do not have a pension fund, you may pay a maximum of 36'288 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.

Open your retirement account or deposit online in a few steps.

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.

A 3a retirement savings custody account is the vehicle in which fund units of a specific person are collated for private retirement provision in pillar 3a. In contrast to the retirement savings account, there is no fixed interest rate for the retirement savings custody account; instead, the funds may in principle develop positively or negatively. The risk is therefore greater than with a savings account. However, with a long investment horizon, a well-diversified portfolio is more likely to generate a comparatively higher return. The longer the investment horizon before retirement, the more likely it is that price losses can be recouped.

Yes, that is possible. You enjoy maximum flexibility and can pay in a sum of your choice at any time. The minimum amount is CHF 50. The maximum amount that can be paid in per year is the tax-deductible amount, which in 2025 is CHF 7,258 for employees with a pension fund and CHF 36,288 for self-employed persons who are not affiliated with a pension fund.

There are fund costs, which are shown in the fund factsheet, and possibly subscription fees, which can be found in the fee regulations.

Yes, you can transfer your credit from another provider. Please be aware that the fund units or other securities usually have to be sold and reinvested with the other provider. This may result in additional costs. 

During the advisory process, a risk profile is drawn up for the investor, and the appropriate product is selected based on this, as the risks depend on the investment: With the "TIF Money Market" solution, the risk is low, but the chances of returns are also low. With the "TIF 100" with maximum equity exposure, the risk is correspondingly higher, but so are the opportunities for returns.

Investments in a 3a retirement savings fund may be associated with various risks, the most important of which is market risk: Fluctuations on the financial markets can affect the value of the investments in the fund. This applies in particular to equities, but also to bonds and other asset classes.

It is important to take these risks into account. This allows you to make a decision that suits your financial goals and risk tolerance. We're here to support you.