Terminating Pillar 3a: how to properly close your account or switch provider

1. When can I terminate my third pillar?

For holders of a Pillar 3a retirement savings account, there are three reasons for termination:

Switching to another provider

You may change your Pillar 3a account or fund provider at any time. You can also convert your Pillar 3 product. However, your money remains tied up in the 3a system.

Closing your 3a account when you reach the age threshold

You can release cash from your 3a account five years before reaching the statutory retirement age at the earliest. This means the threshold age for receiving a payout is 59 years for women and 60 years for men.

Terminating Pillar 3a for advance withdrawal

An advance Pillar 3a withdrawal is possible in part or whole before reaching the threshold age on certain conditions. An advance withdrawal is possible, for example, for building or buying a home you live in yourself. Taxes are due on the money withdrawn.

2. Transferring Pillar 3a: how do I change my bank?

You can transfer the money in a retirement savings or custody account to another bank. However, only the entire account balance can be transferred. This may make sense financially: the interest rates on pension accounts or custodial fees vary from one provider to another. This also goes for digital pension providers. It pays to compare.

If you want to close your Pillar 3a account, this is usually free. Depending on the provider, there may be some notice periods. 

Here’s a quick step-by-step guide to switching banks:

1. Open a new pension account.

2. Ask the new provider to give you a confirmation of opening the new account.

3. Arrange the transfer of pension assets and terminate your old Pillar 3a account.

Your old provider will send you confirmation of the account closure. Any fund shares will then be liquidated. The money will then be transferred to your new 3a account.

3. Can I transfer my Pillar 3a via app?

You can also easily transfer the Pillar 3a balance to another provider with digital pension solutions. This is often possible directly in the app and is free of charge. If you can’t find the option in the app, contact the provider. Depending on the provider, this is possible via:

• E-mail

• Chat

• Phone

• Contact form

4. How do I move my Pillar 3a from an insurance company to a bank?

Insurance companies offer life insurance with Pillar 3a savings plans. The terms of these policies are contractually fixed. It is possible to move your pension assets to a bank. However, you will suffer significant financial losses as a result.

Surrender value of Pillar 3a

Insurance companies often only reimburse the surrender value. In the first few years, this surrender value is lower than the sum of your payments.

Be aware of the cancellation periods

If you wish to terminate the life insurance policy, you must adhere to the contractual cancellation periods. Some insurance providers offer a form where you have to state the reason for cancellation. For the exact cancellation procedure, it is best to contact your provider.