What options are there for saving in the third pillar?
Personal retirement provision comes in different forms. To find the right solution for you, you first need to make a few decisions.
Restricted vs. unrestricted retirement provision
In the case of the restricted pension provision (pillar 3a), with a few exceptions, benefits can only be drawn at retirement age,, but payments made can be deducted from taxes. Unrestricted retirement provision (pillar 3b) is more flexible: There is no maximum amount and assets that are saved can be withdrawn at any time – but in return, pillar 3b only offers tax benefits in certain situations. Due to its tax deductibility, pillar 3a is generally the best choice, particularly for building up personal retirement provision. Pillar 3a is also beneficial with respect to the paying out of money, as this occurs at a reduced tax rate.
Account vs. securities-based saving
With account saving, interest rates are low but they are guaranteed. With securities-based saving, your assets are invested in the markets, with you being able to determine the proportion of shares yourself. We advise that younger insured persons in particular save via investments. Due to the long-term investment horizon, the expected return is considerably higher than with account saving.
Insurance solutions against the event of death and disability are possible via the third pillar. They are useful for providing additional security for yourself and your family.
In the event of questions concerning personal retirement provision, experts from our partner Zurich would be happy to assist you.