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To know everything you need to know about the Third Pillar

Expat in Switzerland: All you need to know about 3rd pillar and pension system

3rd Pillar 2024, maximum amounts and tax deductions.

Third pillar: investment or welfare?

Whole Life Insurance in Switzerland: What You Need to Know

Understanding the BVG second pillar certificate

3rd pillar offer 2024 - First monthly premium cashback

COVID-19 Updates - We make the third pillar online

How is your family covered? Less than you think.

Is it better the insurance 3rd pillar or a bank 3rd pillar?

The Third Pillar and Tax Deductions

Is it worth having more than one third pillar?

Our advice on the third pillar

The Third Pillar, is it really convenient?

The Third Pillar for property owners

What is the best third pillar?

What is the third pillar and who should subscribe to it?

The Three-Pillar System in Switzerland

INFORMAZIONI GENERALI

INFORMATIONS GÉNÉRALES

GENERAL INFORMATION

3rd Pillar 2025, maximum amounts and tax deductions.

Third Pillar 2021, maximum amounts, taxes, social insurances.

Third Pillar 2020, maximum amounts, taxes and social insurance.

Third Pillar 2022, maximum amounts, taxes and social insurance. 

Third Pillar 2019, maximum amounts, taxes and social insurance.

Third Pillar 2023, maximum amounts, taxes and social insurance

IMPORTI MASSIMI

MONTANTS MAXIMAUX

MAXIMUM AMMOUNTS

What benefits have cross-border commuters in making a third pillar in Switzerland?

Third Pillar for cross-border commuters

FRONTALIERI

FRONTALIERS

CROSS-BORDER WORKERS

EXPAT IN SWITZERLAND

Review on 3rd pillar Generali Previdenza Flex

Review on the third pillar Vaudoise RythmoInvest

Review on 3rd pillar Baloise Fonds Plan

Review of the third pillar Swiss Life Dynamic Elements 3a and 3b

Review on the 3rd pillar Generali Scala Capital

Review on the third pillar Baloise Safe Plan 100

Review on the third pillar Liechtenstein Life kokon value plus 3a or 3b

Review on the 3rd pillar Zurich Premium Life

RECENSIONI PRODOTTI

AVIS SUR LES PRODUITS

PRODUCTS REVIEWS

The third pillar is one of the components of the Swiss social security system, along with the first and second pillars. The first pillar represents state provision, is compulsory for everyone living in Switzerland, and is made up of AHV (Old Age and Survivors' Insurance), IV (Invalidity Insurance) and IPG (Compensation for Loss of Earnings) and is intended to guarantee a minimum subsistence level. The second pillar represents occupational pension provision and consists of the BVG, occupational and non-occupational accident insurance, daily sickness benefits insurance and vested benefits institutions. In the collective ideal, it should be able to keep the beneficiary's standard of living unchanged from when he or she was working. But the reality is quite different since, between the first and second pillar, those with full contributions would reach retirement with about 60% of their last income. That is why the third pillar is worthwhile and highly recommended.

Third pillar, its role in the Swiss pension system

The 3rd pillar is not compulsory and it is up to the individual to choose whether to take it out with a bank or an insurance company. It is a security buffer for the future and also for the present. Indeed, in the event of misfortune, i.e. death or disability, those with a third pillar could have an income for themselves and their family. So, it is convenient to subscribe to a third pillar? Absolutely yes. With the 3rd pillar, gaps in the mandatory social security system can be filled. More and more people are deciding to subscribe to a third pillar in anticipation of old age (knowing, however, that they can benefit from it in the event of life transitions such as buying a house, moving abroad or starting self-employment).

The third pillar represents private pension provision

The third pillar is divided into tied pension plan 3a and free pension plan 3b. There are many options, which can be adapted to each individual's needs. Having the third pillar also allows you to save on tax. While the first and second pillars are an obligation, the third pillar is a choice that should be implemented. If you opt for the restricted 3rd pillar pension, you should be aware that the money will be tied up and only in certain cases, such as those mentioned above, can it be withdrawn in advance. If, when taking out a 3rd pillar, you include cover such as a death lump sum or disability pension, your family or the 3rd pillar owner will have financial cover in case of misfortune. Thus, stipulating a third pillar is very important for both employees and the self-employed. The various forms allow capital to be set aside according to availability and there are also upper limits imposed by law. For example, in 2021, an employee who chooses to have a tied pension can pay in a maximum of CHF 6,833 per year. For the self-employed, on the other hand, the maximum is 20 per cent of income, but not more than CHF 34,128 per year. For the unrestricted pension plan there is no maximum.

Tied and free pension provision, the different types of third pillar

A tied third pillar can be taken out with an insurance company or a bank. Which is more convenient? The fundamental difference lies in the 'waiver of premium in the event of disability' cover. If one chooses an insurance company, in the unfortunate event of a disability, even a partial one, the company itself will pay the premiums in the place of the insured, until the time of his or her retirement. The same is not the case with the bank, so when you retire you will only receive what you paid in.

Banking third pillar or insurance third pillar? The difference comes in the event of disability

The insurance third pillar is, in fact, life insurance with capital accumulation, with a financial instrument such as investment funds, indices, certificates, etc. inside it. The way it works is very simple, by paying a monthly premium throughout your working life, you will accumulate a capital that will be paid out to you at retirement age in one lump sum. Each product has its own characteristics. There are products with or without a final guarantee, which focus more on yield, and others that focus more on security. But the choice of one product over another must be made, above all, according to the specificities and uniqueness of each person. It must be said that there is no product that is better or worse than the others, but there are products that respond to a greater or lesser extent to the needs of individual customers. Because the third pillar has to be tailor-made and after a careful analysis of existing covers. In this way, every possible scenario can be foreseen and, if necessary, cover for death and/or disability can be included to protect you and your family.

Insurance third pillar, how does it work?

The third pillar is also tax-efficient. It is in fact deductible from income tax. The deduction of the amount paid into the third pillar affects your taxable income, lowering the rate you use to calculate your taxes. So, having a third pillar also means paying less tax! And when you redeem the capital you will pay income tax at a reduced rate. If you opt for a free pension instead, there are no limits and you can pay into your third pillar as much as you want. Anyone living in Switzerland can take it out. You can redeem the accumulated sum (even partially) whenever you want, so in addition to saving for your retirement, the free third pillar can be designed for well-defined medium-term projects (educating your children, buying a house, for example). The amount paid in is not tax deductible, except under certain conditions, but when you withdraw the sum you will be taxed on your assets and not on your income.

Third Pillar and taxes: what is the relationship?

What if a person dies or becomes disabled? Be careful, because the compulsory social security system does not offer much cover. If you do not have a 3rd pillar, your spouse will not receive a widow's pension unless you fulfil certain requirements, such as having at least one child in common, or being at least 45 years old and married for five years. If, on the other hand, the deceased person has taken out a third pillar and included a death benefit in it, it will be paid to the heirs, thus avoiding many problems. Think, for example, what would happen if, following a death, the spouse could no longer afford to continue paying the mortgage on their house, or the children could no longer afford to continue their university studies? This is why planning for the third pillar in good time becomes crucial. What happens instead in the case of disability? Again, if a disability pension was provided for when the contract was signed, it will be received until the end of the contract (i.e. until retirement). In short, thinking about protecting your loved ones and yourself is strongly recommended when you choose to take out a third pillar, because you are covering situations that you rarely think about but which, if they occur, risk putting everyone in serious financial difficulty. The third pillar is convenient for everyone: including people who are not gainfully employed and perhaps take care of the house and children, but who may find themselves in a state of disability and therefore need money to support themselves and find someone to help them, the very young who do not work and do not enjoy second pillar cover and would therefore receive a minimum pension from the IV in the event of disability.

Protect your family with the third pillar

Certainly, for a worker living abroad and working in Switzerland it is almost even more important, because he/she is unlikely to pay all the contributions to the mandatory pension system. In order to guarantee himself a good standard of living, he has to make up for it with a third pillar. What about tax deductions, in this case source tax? For a cross-border commuter it is only possible to deduct the third-pillar share if he receives 90% of his income in Switzerland, where income means all family income. The biggest advantage for a cross-border commuter, however, is that he has money available after retirement and does not have to drastically lower his lifestyle.

Is it also worthwhile for cross-border commuters to subscribe to a 3rd pillar?

Qu'est-ce que le troisième pilier et à qui sert-il?

Cos’è il terzo pilastro e a chi conviene stipularlo?

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The Third Pillar and Taxes

Those affiliated to a pension fund BVG (generally employees): can make maximum contributions for the year 2025 of CHF 7258 /year. For those not affiliated to a pension fund BVG (generally self-employed): may make contributions equal to 20% of income, but up to a maximum of CHF 36'288/year. &nbsp;

2025 - How much can you contribute to Pillar 3a?

Test us, you will be surprised by the quality of our advice. We'll compare the best companies to find the third pillar that's right for you. Take the first step by asking for a comparison, or by booking a video call with an advisor.

Are you ready to compare the best companies? Try the best retirement consulting

As a rule, the determining amounts of the 1st, 2nd and 3rd pillars follow the adjustment of AHV pensions. This adjustment is proposed every two years (except if the exception in paragraph 4 of Art. 33ter LAVS is realized). &nbsp;

Every how many years is the maximum amount adjusted?

For tax deduction purposes, amounts paid to Pillar 3a from 01.01.2025 to 31.12.2025 are taken into account. Then, between January and February 2025 you will receive the statement from the company with which you have signed the third pillar to attach to your tax declaration. If you have more than one 3rd pillar, you will of course receive a certificate for each contract, but in any case the total cannot exceed the maximum deductible for the year 2025. Thus the sum of the premiums paid to Pillar 3A will be deducted from your taxable income. On the other hand, those who are taxed at source, such as B permits or cross-border commuters, will have to apply to the tax office at source for Ordinary Additional Taxation (TOU) by March 31 of the following year in order to take advantage of the tax deduction.

Deduct the 3rd pillar from taxes in 2025

Maximum AHV/IV pension: CHF 2'520 /monthMinimum AHV/IV pension: CHF 1'260/monthBVG entry threshold: CHF 22'680BVG coordination sum: CHF 26'460THIRD PILLAR 3A &nbsp;With second pillar BVG, maximum deductible: CHF 7'258, &nbsp;Without second pillar (max. 20% of net salary): Max. CHF 36'288

Social insurance figures 2025

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Third Pillar 2023, maximum amounts, taxes and social insurance.

Third Pillar 2022, maximum amounts, taxes and social insurance.

Third Pillar 2021, maximum amounts, taxes and social insurance.

Moving to a new country can be fascinating, but it can also be fraught with uncertainty. In Switzerland, expatriates are often faced with many retirement issues.&nbsp; This article provides an initial overview to help expats with these important challenges.

New in Switzerland? Take a look to the pension system

One of the hallmarks of the Swiss social security system is its robust three-pillar structure, designed to ensure a comfortable standard of living both during working life and old age.&nbsp;The first pillar, known as the AHV (or OASI in English), provides a basic retirement income in the form of an annuity. As the first pillar use a 'distributive' system, your current contributions are used to fund current pensions. For this reason, you will not accumulate any capital in the first pillar. The AHV is mandatory for everyone living or working in Switzerland.&nbsp;The second pillar, or occupational pension plan (BVG), consists of mandatory pension funds for working people and, like the first pillar, provides coverage in the event of disability, death and retirement. Unlike the first pillar, the second pillar uses a 'capitalisation' system, meaning that you will accumulate a capital during your working life, which is converted into a pension when you retire. This accumulated capital is yours and will follow you whenever you change jobs.In both, first and second pillars, those who have made full contributions will receive around 60% of their last salary.&nbsp;Finally, the 3rd pillar offers an individual saving option through Pillars 3a and 3b, providing additional financial security to cover any gaps in the events of disability, death or retirement. Pillar 3a also gives you an important tax advantage.

The three pillar system: The base for your Retirement

Thinking about the future is essential to think about it well in advance. While the first and second pillars cover your basic financial needs, it is advisable to aim for a retirement income of at least 80% of your last salary.&nbsp;Expats, who generally come to Switzerland late in their careers and therefore have not paid full contributions from the beginning, may find it advantageous to use the 3rd pillar to fill any pension gaps.However, the first step is to understand your current situation through a pension analysis, which will show you what you can expect from the 1st and 2nd pillars. This will enable you to conclude a contract for a third pillar to cover any possible gaps.

Plan your future with confidence

The third pillar is essential to cover your income in case of disability and to protect your family in case of death. Think about what would happen if, at some point, your family lose your income. Could they continue to pay the mortgage of your home? Could they maintain the same standard of living? Could you still pay for your children's education?These are the questions that need to be answered in order to plan your retirement properly. With a third pillar, you can cover all these events and plan your future with the peace of mind of someone who knows is covered in the right way.

3rd pillar and family protection

Ti sei trasferito in Svizzera? Attenzione alla previdenza

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New in Switzerland? All you need to know about 3rd pillar and pension system

Insurance linked to investment funds and traditional savings. Available as pillar 3a or pillar 3b.
Minimum premium: CHF 150/month.

Type of third pillar:

The Swiss Life Dynamic Elements product is, in our opinion, a very attractive product for those seeking a higher return for a relatively low risk (depending on how the product is set up). Yes, because the product has many aspects that can be customised based on your profile and your needs, for example:
You can choose from four investment strategies: income, balanced, growth and equity.
You can include elements to reduce investment risk, such as outperformance protection and maturity management (consult us to better understand these mechanisms).
In addition, a guaranteed death lump sum and disability cover can be included.
How does it work?
The functioning of this product revolves around two fundamental components: the security element and the performance element.
The security element is, in practice, a classic insurance component, remunerated with an interest rate that is set at 2% for 2021. This interest rate is set by Swiss Life, and can also be negative, up to -2%.
The return element, on the other hand, consists of a portfolio of investment funds and is therefore not remunerated with an interest rate, but with any performance of the funds themselves.
Depending on the investment strategy chosen, and the type of premium spread (which can be 'dynamic' or 'constant'), a part of the premium you pay each month will go on the security element and the rest on the return element. For example, if you choose the 'balanced' strategy, this distribution will be 50%-50% between the two elements.
At the end of the contract, Swiss Life will pay you the balance of the security and yield elements that you have accumulated over the years.
Attention: the final capital is not guaranteed, so it may be higher or lower than what you have paid in over the years.
Given all the variables and possibilities offered by this product, in order to have a third pillar that fully satisfies you, thorough and competent advice is essential.

Brief Description:

Here are a few points to pay attention to:
1) Is the person in front of you registered with the FINMA intermediary register?
2) Is the intermediary able to explain to you in detail the composition and functioning of the product?
3) Have you chosen the investment strategy together?
4) Has it been explained to you that in addition to gains, there may also be losses?
5) Was the offer made taking into account your current first and second pillar cover?
6) Did the intermediary give you the full offer and time to evaluate it?
If you need advice, please contact us by clicking here

But how to recognise good advice?

- The product offers many possibilities, allowing it to be customised to your measure.
- Although the product does not have a guaranteed capital, it offers several mechanisms to reduce the investment risk.
- Possibility of including insurance cover in the event of disability and death.

Positive aspects of Swiss Life Dynamic Elements:

- The product, by its very nature, does not have a guaranteed capital.

Negative aspects:

In our opinion, the third pillar Swiss Life Dynamic Elements UNO and DUO is a good product for those who are looking for a higher return opportunity and are willing to take a little extra risk.
It is also suitable, for example, for those who already have a 3rd pillar (perhaps with guaranteed benefits) and want to diversify.
Finally, it must be said that, as with all investment products, your satisfaction will depend, above all, on the quality of the advice.

Conclusion:

Revue du troisième pilier Swiss Life Dynamic Elements 3a et 3b

Recensione sul terzo pilastro Swiss Life Dynamic Elements 3a e 3b

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Review on the third pillar for cross-border workers Liechtenstein Life kokon value plus 3a or 3b

Per sapere tutto quello che devi sapere sul Terzo Pilastro

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Terzo pilastro: previdenza o investimento?

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E’ meglio un terzo pilastro assicurativo o uno bancario?

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Il terzo pilastro è sicuro?

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Il Terzo Pilastro, conviene veramente?

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Terzo pilastro 2025, importi massimi e imposte

Terzo pilastro 2025, importi massimi, imposte e assicurazioni sociali.

Terzo pilastro 2024, importi massimi, imposte e assicurazioni sociali.

Terzo pilastro 2023, importi massimi, imposte e assicurazioni sociali.

Terzo pilastro 2022, importi massimi, imposte e assicurazioni sociali.

Terzo pilastro 2021, importi massimi, imposte e assicurazioni sociali.

Terzo pilastro 2020, importi massimi, imposte e assicurazioni sociali.

Terzo pilastro 2019, importi massimi, imposte e assicurazioni sociali.

Il terzo pilastro per frontalieri

Quali benefici hanno i frontalieri nel fare un terzo pilastro in Svizzera?

Chiarimento sul beneficio fiscale del terzo pilastro 3A per i “nuovi frontalieri”

Recensione sul terzo pilastro Zurigo Previdenza Premium

Recensione sul terzo pilastro per frontalieri Liechtenstein Life kokon value plus 3a o 3b

Recensione sul terzo pilastro Baloise Safe Plan 100

Recensione sul terzo pilastro Generali Scala Capital

Recensione sul terzo pilastro Vaudoise RythmoInvest

Recensione sul terzo pilastro Swiss Life Flex Save Duo

Recensione sul terzo pilastro Generali Scala Profit

Recensione sul terzo pilastro Generali Previdenza Flex

Recensione sul terzo pilastro Liechtenstein Life Prosperity Plus

Recensione sul terzo pilastro Baloise Fonds Plan

Articles

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Troisième pilier 2022, montants maximaux, impôts et assurances sociales.

Troisième pilier 2021, montants maximaux, impôts et assurances sociales.

Troisième pilier 2020, montants maximaux, impôts et assurances sociales.

Troisième pilier 2019, montants maximaux, impôts et assurances sociales.

Troisième pilier pour les frontaliers

Quels sont les avantages pour les frontaliers de faire un 3ème pilier en Suisse ?

Avis sur le 3ème pilier Zurich Prévoyance Premium

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Avis sur le troisième pilier Generali Scala Capital

Avis sur le troisième pilier pour les frontaliers Liechtenstein Life kokon value plus 3a ou 3b