Is the pillar 3a worthwhile?

Becau­se the case is clear, we don’t waste time: Yes, pil­lar 3a is worthwhile. The rea­son is simp­le: Pay­ments into Pil­lar 3a can be deduc­ted from tax­able inco­me in your tax return. In this way, part of the Pil­lar 3a pay­ment is prac­ti­cal­ly self-finan­ced by the tax savings (risk-free return).

In addi­ti­on, pen­si­on assets do not have to be decla­red in the tax return. You save wealth tax year after year and inco­me tax on inco­me such as inte­rest or divi­dends.

Reduced tax at the time of withdrawal

Alt­hough a tax is pay­a­ble on the with­dra­wal, it is a redu­ced tax. It is less than the stan­dard inco­me tax. The­re­fo­re, you save more tax with the depo­sit than you pay at the time of with­dra­wal. A few examp­les of cal­cu­la­ti­ons:

10 yearsInco­me Tax
Depo­sit 2020–2029 each CHF 6’826Tax saved: CHF 18’780
With­dra­wal 2030 (CHF 68’260)Tax paid: CHF 3’317
Total tax savingsCHF 15’463
20 yearsInco­me Tax
Depo­sit 2020–2039 each CHF 6’826Tax saved: CHF 37’560
With­dra­wal 2040 (CHF 136’520)Tax paid: CHF 7’462
Total tax savingsCHF 30’098
30 yearsInco­me Tax
Depo­sit 2020–2049 each CHF 6’826Tax saved: CHF 56’340
With­dra­wal 2050 (CHF 204’780)Tax paid: CHF 12’569
Total tax savingsCHF 43’771
40 yearsInco­me Tax
Depo­sit 2020–2059 each CHF 6’826Tax saved: CHF 75’120
With­dra­wal 2060 (CHF 273’040)Tax paid: CHF 21’105
Total tax savingsCHF 54’015

Sin­gle, refor­med, no child­ren, City of Zurich, CHF 100,000 inco­me, with­dra­wal not in the same year as the with­dra­wal of the pen­si­on fund assets

Several 3a accounts for a staggered withdrawal

Sin­ce the tax is pro­gres­si­ve when it comes to pay­out, it is worthwhile to accu­mu­la­te several 3a accounts and with­draw them in sta­ges. This will fur­ther redu­ce the tax on with­dra­wals of 3a assets.

Withdrawal before retirement only possible in exceptional cases

Money that is paid into the pil­lar 3a sche­me is gene­ral­ly tied up until reti­re­ment. In the fol­lo­wing situa­tions, 3a assets can still be with­drawn if you:

  • build of purcha­se a pro­per­ty,
  • beco­me self-employ­ed (as a sole pro­prietor­shop without GmbH or AG) or
  • emi­gra­te.

Long investment horizon must be exploited

Sin­ce pil­lar 3a assets can gene­ral­ly only be with­drawn upon reti­re­ment, most 3a savers have an excep­tio­nal­ly long invest­ment hori­zon. A long invest­ment hori­zon allo­ws a secu­ri­ty solu­ti­ons with equi­ties. A cri­sis can be pas­sed up and tem­pora­ry los­ses do not have to be rea­li­zed.

Pillar 3b is not tax deductible

Here and the­re one also encoun­ters the con­cept of pil­lar 3b. Howe­ver, pil­lar 3b is not­hing other than free saving with free assets. Pil­lar 3b insuran­ce poli­ci­es are also ordi­na­ry insuran­ce poli­ci­es. They have neit­her tax advan­ta­ges nor a sta­tu­to­ry pen­si­on cha­rac­ter. Accord­in­gly, such assets and the inco­me from them must be decla­red in the tax return.

writ­ten on 29.04.2020

Cur­r­ent­ly, fin­pen­si­on offers solu­ti­ons for vested bene­fit savings with secu­ri­ties and indi­vi­du­al manage­ment pen­si­on plans 1e. A 3a secu­ri­ties app is under deve­lo­p­ment.