With securities-based saving, your 3a balance is not held in an interest-bearing account, but instead is invested in funds. Depending on the fund and investment strategy, the money is invested in equities, bonds, real estate or gold.
The performance of your 3a account balance depends on the financial markets and the investment strategy you choose. Over the long term, securities offer higher potential returns than a traditional 3a account. At the same time, however, losses are possible – especially with a short investment horizon.
Not every 3a solution works the same way. In addition to the traditional 3a account, there are securities and insurance solutions, as well as combinations of the two.
| Solution | Potential for returns | Risk | Insurance coverage |
| 3a account |
Relatively low, since the interest rate on the balance is very low |
No price fluctuations |
No additional insurance coverage |
| 3a securities or fund solution |
Higher long-term return potential than with a 3a account |
Price fluctuations and losses possible |
No additional insurance coverage |
| 3a insurance |
Depends on the type of savings or investment | Insurance benefits provide additional protection |
Coverage possible, for example, in the event of death or disability |
| Combined solution |
Depends on the selected modules |
Depends on the selected modules |
Available depending on the solution |
In short: A fixed-rate 3a account is suitable for people who prefer a simple solution without price fluctuations. Securities solutions offer the potential for higher long-term returns, but their value may fluctuate. Insurance solutions combine savings with security and the potential for returns, and are generally somewhat less flexible than pure securities solutions. In return, they can fill pension gaps and safeguard the savings process.
The most important difference with respect to a 3a account lies in the potential growth of the capital. Interest is paid on the balance in a 3a account. With a securities solution, however, performance depends on the investments made.
Higher potential returns
Over the long term, securities can offer significantly higher potential returns than a 3a account. Equities, in particular, can help build wealth over the long term.
However, a specific rate of return is not guaranteed. It is impossible to predict how an investment will perform in the future.
The risk of price fluctuations
The value of equities, bonds and other securities may rise or fall. The extent to which your 3a balance fluctuates depends, among other things, on the proportion of equities and the composition of the fund.
The higher the proportion of equities, the greater the potential returns – but also the greater the potential for value fluctuations.
Time can cushion fluctuations
Those who still have many years until retirement are better able to offset temporary losses in value. That is why the investment horizon plays an important role in securities-based saving.
A long-term investment horizon, broad diversification across various investments, and regular contributions can help offset short-term fluctuations. However, they do not protect against losses.
It's not just the expected return that determines whether a solution is right for you. Also consider the following points:
Fees affect how much of the return you'll keep in the long run. That's why it's worth comparing the costs of different 3a solutions.
Depending on the product and provider, fund costs for fund management, transaction costs when buying or selling, and custody or administrative fees may apply.
However, it is not just the amount of the fees that matters. Also consider what the solution has to offer in return: For example, the quality of asset management, investment selection, advisory services, digital services, or options for adjusting the investment strategy.
You can find the actual costs in the price list or terms and in the respective fund documents.
A few questions can help you better determine whether a securities solution is right for you:
Depending on your answer, a 3a account, a securities solution, an insurance policy, or a combination of different solutions may be a good fit.
Useful calculator: The pension gap calculator can be used to identify potential gaps, while our tax calculator shows the savings potential of contributions to pillar 3a.
You can work with Zurich's retirement provision experts to determine which solution is right for your personal situation. The free 15-minute video consultation is a great way to get started.
Zurich offers you various options for building up your pension savings in pillar 3a – from traditional savings to securities-based saving with funds. Depending on your investment horizon, risk tolerance and desired protection, different solutions may be appropriate.
For fund solutions, Zurich Invest Ltd handles the professional selection and monitoring of investments and offers various investment strategies with different equity allocations.
How does the third pillar of retirement provision work in Switzerland? What options are available for private retirement planning, ranging from traditional savings to securities-based saving with funds? On our overview page about the third pillar, you'll find all key information: Basics, tax benefits, differences between banking and insurance solutions, guides and answers to frequently asked questions.
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As a technical expert at Zurich, he contributes his expertise in retirement provision and investments.
