You are already familiar with the three-pillar pension system in Switzerland and know how important pillar 3a is for you. But are you also familiar with pillar 3b and the differences to pillar 3a? Read on and find out what it means to invest in pillar 3b.
Third pillar – voluntarily saving now for life later
If you voluntarily save money today for your future retirement provision, these investments belong to the third pillar. Regardless of whether they are pension accounts, 3a insurance policies or other investments. Depending on how and in which products you invest the money, they are referred to as pillar 3a or pillar 3b investments.
Investing in pillar 3a: saving with a tax bonus
Put simply, the difference between 3a and 3b is that saving for pillar 3a is tax-privileged in several respects. In return for the tax relief, there are a few restrictions. Firstly, you can only pay in up to a maximum amount. And secondly, you can only withdraw money before retirement age in a few, precisely defined cases. This is why pillar 3a is also known as tied pension provision. Banks and insurance companies offer various pillar 3a products, usually from their own pension foundations. For the most part, you are better off with offers that do not come from a house bank. Think you can’t switch? Here we clear up the biggest misconceptions about pillar 3a. As an employee or self-employed person, you can buy the products and claim the amount against your taxes each year.
In this article, we have described how you can invest your money securely step by step. Once you have completed the first steps and paid in up to the maximum pillar 3a amount: Yeah! Then you can invest the rest in pillar 3b.
Investing in pillar 3b: saving with self-determination
Investing in pillar 3b is voluntary, just like saving in pillar 3a. However, unlike pillar 3a, it is not tax-advantaged. In return, however, you have no restrictions on how you invest your free assets, when and why you want to withdraw the money or on the choice of provider. That’s why pillar 3b is also known as unrestricted pension provision. Investing in pillar 3b opens up the whole range of asset classes to you.
At a glance: key differences between pillar 3a and pillar 3b
The table shows you the relevant differences between pillar 3a and pillar 3b. While the requirements for products in pillar 3a are relatively strict and competition is comparatively sluggish, you can invest in whatever you want in pillar 3b.
| Pillar 3a | Pillar 3b | |
|---|---|---|
| For whom | only for employees and self-employed persons | for all |
| Which products are available | 3a retirement savings account, 3a securities | all asset classes |
| how much | up to the maximum amount per year | Unlimited height |
| how long does it run | until retirement (age 64/65), withdrawal at the earliest 5 years earlier | You choose the term yourself |
| When will you get the money? | only in defined cases (most important: home ownership, self-employment, relocation to Switzerland) | at any time without restrictions |
| you can pledge | only for owner-occupied residential property | possible at will |
| Which taxes in the savings phase | No income or wealth tax | Income and wealth tax |
| Which taxes are levied when | Reduced pension tariff, separate from other income | none |
Record free assets from pillar 3b in the Smolio Cockpit for the first time
At Smolio, our mission is to enable everyone to make their own financial decisions and benefit from the capital market. With our smart cockpit, you can see how your finances are doing. For some time now, you have been able to show what you want to invest or have invested in pillar 3b and thus supplement these asset components.
This will give you an even more comprehensive view of how much money you will have to live on in the future. It’s very simple. Log in, navigate to the cockpit and select “free assets”. With just a few entries, the Cockpit then converts your free assets from pillar 3b into an income at the time of your retirement.
As usual, you will of course receive a clear overview of the most important information. We have added your free assets to the tabular Smolio Cockpit.
Incidentally, we use the CleverCircles solution for some of our assets. You can open a demo account there free of charge. With the Clevercode Smolio, you will even receive a performance booster of 100 francs when you invest later (and so will we). Even without investing, you can invite Smolio to your Circle and take our investment decisions into account when making your own financial decisions.
Mach den ersten Schritt zur finanziellen Unabhängigkeit
In einer Minute siehst du deine Vermögensentwicklung und dein Einkommen während der Rente.
Disclaimer
We have taken great care in compiling the content of this article. Nevertheless, we cannot rule out errors and cannot guarantee that the content is correct, up-to-date or complete. This article does not replace tax advice. We do not offer investment or tax advice and recommend that tax issues are always clarified with a tax expert and/or the relevant cantonal tax authorities. Any liability is rejected.
Last update: 01.12.2024 20:43
