Is it better have one or two third pillar contracts?

better one or two 3rd pillar

Is it better have one or two third pillar contracts?

We are often asked whether it is worthwhile to make two 3rd pillar contracts instead of just one. The answer is: it depends on the purpose for which you do the third pillar.

From the point of view of tax deduction during the contractual term

There is no difference since, for the purposes of the tax return, only the total paid at 31.12 counts.

From the tax point of view, at the moment to cash the 3rd pillar (i.e., at the retirement)

Here we have to make a note because, to calculate the tax rate, the capital of the third pillar is added to the capital of the second pillar (in case you decide to withdraw the capital and not the pension), and consequently, the taxes to pay will be higher. Therefore, depends on the final ammount, it is perhaps worth considering whether to make a single 3rd pillar, or two.

From a performance and cost point of view

There are practically no differences between making one or more 3rd pillar contracts.

If you are thinking of buying a house

If you plan to use the third pillar for indirect amortization, or to give it as a guarantee to the bank, then, in this case it is better to separate the contracts and make a third pillar that only serves the mortgage, and another for the rest of the budget available.

In summary, each person deserves a tailor-made solution, so do not hesitate to contact us for in-depth advice.

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