The restricted 3rd pillar plan serves as private, personal provision. It is regulated by law and only available to working individuals (see beneficiaries). While there are exceptions (see advance withdrawal), the savings may generally be withdrawn no earlier than five years before the regular retirement age.
The pillar 3a offers tax privileges that are regulated by law:
- Tax deductions for 3rd-pillar payments
- Tax-free interest yield
- Tax-free capital
- Tax advantages in case of several parallel pension plans
Restricted pension plans are available from banks (3a accounts, pension funds, life insurance products) and insurance companies (pension policies).