Private pensions

Private pension provision can take two forms:
Free individual pension provision:
With free individual pension provision, you can invest cash in solutions such as life insurance or financial assets. It is important to note that this provision does not benefit from any particular tax advantages. However, the major advantage lies in your total freedom to manage your assets, allowing you to use them without tax constraints.

On the other hand, linked individual pension provision, commonly known as "Pillar 3a", offers significant tax advantages. The law sets a maximum limit that active savers can deduct from their taxable income by investing in this form of pension provision.

A unique feature is that the self-employed, who do not benefit from a company pension scheme (second pillar), can compensate for this absence using pillar 3a. Therefore, the amount they are allowed to deduct is generally higher than that for employees.

Please remember that, under pillar 3a, savers can withdraw their savings, including accumulated interest, within a specific time window. You can retire five years before your average retirement age and five years after that. However, some exceptions allow you to remove your capital early, such as when you buy or build your principal residence, start a self-employed business, leave Switzerland permanently, or buy back years of insurance with a second-pillar pension fund. 

The benefits of a 3A private pension include tax savings, retirement security, and the ability to plan your financial future more flexibly.

You cannot withdraw cash from your 3A account at any time. Withdrawals are generally only permitted in specific situations, such as buying your first property, moving abroad or retiring.

Opening a 3A account can be beneficial even if you already have occupational pension provision (OASI and 2nd pillar), as it allows you to increase your retirement savings and benefit from additional tax advantages. This also enables you to guarantee a reliable foresight when engaging in an independent activity.

Yes, you can invest your 3A account. 3A funds generally offer a range of investment options, including investment funds, savings accounts, and other financial instruments to grow your retirement savings.