The private pension is the third pillar of the “three-pillar” Swiss retirement system. There are plenty of ways to invest your savings. Both banks and insurance companies offer suitable products. In addition to the traditional fixed-rate pillar 3a bank account, banks also offer investment accounts for investors willing to take more risks.If, as well as saving money, you are interested in being covered against risks such as death or incapacity for work due to illness or injury, then third-pillar insurance products might be a good choice.
Investments into any of the pillar 3a products may be fully deducted from your taxable income up to the maximum annual contribution as set by law.
Private retirement savings are important for maintaining your standard of living in retirement. And yet, a large part of the Swiss population starts planning their retirement late, insufficiently or incompletely. The state and occupational pensions (pillars 1 and 2) are often too low for you to maintain a comfortable standard of living after retirement. Without a pillar 3a (private) pension there can be a substantial gap in your financial provisions.