Is the Third Pillar really worthwhile?
Absolutely yes, but why?
This is a question that many people ask, and we will try to answer.
First, it should be clarified "What is the 3rd pillar for?".
Well, the third pillar serves to fill the pension gap left by the 1st and 2nd pillars. Let's not forget that the Swiss social security system was designed to reach retirement with about 60% of our last income (assuming that you don't have contributions gaps). To encourage retirement provision, the state allows us to deduct up to CHF 6'826 / year of income from our taxes.
To make everything clearer, we can say that by paying the maximum in a third pillar, we will save CHF 1,500 / CHF 1,800 per year of taxes (depending on your income, domicile, etc.). Therefore, already from a fiscal point of view, the third pillar offers a considerable advantage
At this point you will ask yourself "but is it essential to do it with an insurance? Or can I do it in a bank? " Let's say that insurance, unlike a bank account, is the tool that allows you to get to reach your goals IN EVERY CIRCUMSTANCES, as it offers you some more guarantees than the bank.
Should an invalidity occur due to illness or accident? The insurance will cover the premiums to be paid UNTIL YOUR RETRIETMENT, thus arriving at the pension with all the capital you had planned to have.
Does a death happen? The insurance immediately liquidates a capital to the heirs.
It must also be said that insurance products also have a certain flexibility, for example:
They allow you to raise or lower the premium.
Some products provide the possibility of taking breaks in the payment of the premium (e.g. for pregnancy or if I lose my job, etc.).
The death capital is not part of the hereditary mass.
To conclude, is the 3rd pillar worthwhile? Absolutely yes !, and it is essential to do it in time, to protect yourself and who depends economically on you.
To find out which third pillar is most suitable for your situation, do not hesitate to contact us by clicking here