Is it worth paying for the 3a policy?
You’ve taken out a 3a policy with your insurer. However, the annual policy contribution is lower than the maximum allowed pillar 3a deposit. Comparis explains how you can invest the remaining amount allowed for pillar 3a.
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You’ve taken out a 3a policy with your insurer. However, the annual policy contribution is lower than the maximum allowed pillar 3a deposit. Comparis explains how you can invest the remaining amount allowed for pillar 3a.
Financial service providers typically remind their customers about pillar 3a deposits at the end of the year if they have not already done so. Insurance companies also do this, although their customers have already committed themselves to a certain annual premium payment.
The premium usually only makes use of a portion of the permitted 3a contribution
This is because many 3a insurance savers opt for a 3a insurance solution at a young age. In doing so, they undertake to pay a certain premium, for example half the maximum 3a payment allowed in the final year. In 2023, this would be 3528 francs of the maximum permitted 7056 francs for gainfully employed people with a pension fund.
There are few good reasons to pay this additional payment
A few years after taking out the 3a policy, higher income may allow you to pay significantly more into pillar 3a. Insurance companies recommend that their 3a customers make an additional payment to the policy if they have not exhausted their options for paying into pillar 3a.
3a savers should therefore block additional 3a savings until the end of the policy with the insurance company, however without receiving insurance benefits. The only advantage of making an additional payment into a classic life insurance policy is the guaranteed survivor's benefit (the insured sum agreed upon in the life insurance contract plus the surpluses generated up to that point).
A new policy improves insurance cover
Do you want better insurance cover (death and disability risk)? If so, you should take out a new 3a policy instead of making an additional payment. In this case, make sure that the new policy really complements your previous policy.
Banking solutions are more flexible
When it is simply a question of saving capital for old age, banking solutions are more suitable. The savings in 3a accounts are not guaranteed there. For this, people with 3a savings held with a bank remain more flexible as they can change providers at any time without any problems. Furthermore, bank savers have a wide range of investment funds at their disposal, such as equity funds with different shares or actively and passively managed funds. Insurance companies also offer investments with different funds, but their range of products is much narrower.