The most important facts about pillar 3a 

• The amounts you pay in each year are capped. This is adjusted every few years. 
  
• You can only pay into pillar 3a if you are gainfully employed or receive unemployment benefits. 
  
• If you work beyond retirement age, you can still pay into pillar 3a for a maximum of five years. 
  
• You can withdraw money from pillar 3a at the earliest five years before the regular AHV age (women 59, men 60). 
• In a few special cases, you are allowed to withdraw the money earlier – if you emigrate, go into business for yourself or buy a home that you use yourself, for example. 
  

How to save taxes with pillar 3a 

• You can deduct the amount you pay into pillar 3a from your taxable income. You can find the current statutory maximum amounts here. 
  
• All interest from pillar 3a is tax-free. 
• You do not have to pay wealth tax on your pillar 3a assets. 
  
• Your pillar 3a assets are not taxable until you withdraw them. 
  

3a savings with an insurance company: advantages and disadvantages  

You can take out your private pillar 3a pension with an insurance company or a bank. The most suitable solution will depend on your personal situation. 

Pillar 3a insurance combines two important things: Saving for retirement and protecting yourself from risk. With saving you have two options: If you want to save risk-free, choose a product with a guaranteed payout at the end of the contract. But because of the current low interest rates and guarantees your pot won’t grow that much. If you want to speculate on making a profit, it’s better to go for investment funds with no guaranteed maturity payments. In both cases, pillar 3a will help you close any gaps in your pension. 

Generali Tip

With investment fund products, you do not pay the maximum amount into your pillar 3a all at once. Spread it over the whole year. In this way you will benefit from different daily prices and pay less for your securities overall. This is called the cost-average effect. 

Here are Generali’s products 

• Traditional life insurance: you save for old age and insure yourself at the same time in case you become disabled or die. Your annual premium is used in two ways: One part is invested to protect you from the above risks, the other is put into investment funds. Life insurance is available with or without a guaranteed maturity benefit. 
  
  
• Risk protection insurance: you insure yourself in case you become disabled or die. This product is the cheaper option because it does not involve building any savings. The primary concern here is to protect you from the above. 
  
  
• Endowment insurance: This policy focuses on saving and includes a waiver of premium rider. The savings component is invested in investment funds. This insurance policy is available with or without a guaranteed maturity benefit. 
  
  
• Digital pillar 3a: You can use this solution online within minutes. Generali’s pillar 3a comes with flexible premium payments, a savings component and is low cost. It is suitable for people who already have a life insurance policy and want to save even more tax and those who do not yet have any savings. 
  
  
• Adding a waiver of premium rider: When taking out pillar 3a products, it is always worthwhile adding a premium waiver. With a premium waiver, Generali will continue to pay your insurance premium if you become unable to work due to an illness or accident. This means you’ll always get the guaranteed capital at the end of the contract This risk protection is not available from banks. 
  

Your money is in safe hands with all these products. The entire capital is protected as tied assets; supervision lies with the Swiss Financial Market Supervisory Authority FINMA. 

Generali Tip

With all products combining savings and insurance, you pay the same premiums for the entire term. This means you'll know exactly how much your retirement provisions will cost you until the end of the contract. Generali is the only company in Switzerland which guarantees the premiums for the disability pensions (supplementary insurance) for the entire term. 

Saving with a fund policy: How risky is it for you? 

If you would like to receive more than just the modest interest you currently receive on your retirement provision, the best thing to do is to take out a fund policy without a guaranteed maturity benefit. The maturity benefit is the amount you will be paid when the insurance expires. In the case of a fund policy without a guarantee, this amount depends on the stock market performance. To ensure the risk is not too great, we offer you various safety mechanisms: 

• Risk reduction at the end of the term: Five years before the insurance expires, the proportion of shares in your investment will be gradually reduced. 
  
  
• Broad diversification in the investment: We invest for you in over 5,000 individual securities worldwide. 
  
  
• Holding onto the fund units after the insurance expires: This option makes sense if you have waived the risk reduction and the market price collapses at the end of the contract. Then you can continue to hold your fund units in a fund custody account and sell them at a more favourable time.
  
  
• Our asset managers optimise your fund units on an ongoing basis: In return for paying a fair price, you can be sure that you have always made the best possible investment. 
  

3a savings with a bank: advantages and disadvantages 

Pension provision with pillar 3a is part of the standard product range of practically all Swiss banks. you have the flexibility to decide how much you want to pay in. You can also take a payment break if ever you find yourself short of money. If you are no longer satisfied with the bank or the conditions, simply move your assets to another provider. 

Pillar 3a at a bank is available as a savings account or a fund account. a savings account is a safe option, but little interest is paid. Under certain circumstances, this option may not be enough to fill the pension gap from the 1st and 2nd pillar. With a fund account, the bank invests your money in securities. You normally benefit from higher returns than with a savings account. 

Insurance and bank: Generali’s digital pillar 3a. 

Our digital pillar 3a combines the benefits of an insurance company and bank. You can use this solution online within minutes. Generali’s pillar 3a is suitable for people who want to begin building their old-age provision. You decide how much you want to pay in each year. In this way you can adjust the pillar 3a to suit your circumstances. You can be flexible when it comes to payouts: as long as you remain within the legal thresholds, you can withdraw your balance at any time. 

What are the benefits of our digital pillar 3a? 

• 24/7 access to your account: You can check the amount you have already paid in at any time on our costumer portal. This is also where you can change your payment amounts and intervals. 
  
  
• If you are unable to work due to illness or accident, we will continue to pay up to CHF 3,000 into your pillar 3a. If necessary, until retirement. 
  
  
• Our investment managers will actively manage your money and optimise your investments on an ongoing basis. Risk reduction is automatically included. Thanks to this affordable service, you’ll have all bases covered. 
  

Generali Tip

Opening several 3a accounts will allow you to benefit from all of the different providers’ conditions and rates of return. You can also have the accounts paid out individually or have your money paid out in instalments. If you only have a 3a account, you will not be paid any partial amounts. Depending on your canton, this strategy may also allow you to save taxes. 

You decide: bank, insurance or both 

You now know the advantages and disadvantages of the various pillar 3a products. Whether you choose the product of an insurance company, a bank or a combination of both will depend entirely on your personal needs. 

Plus, your age is also another factor to consider: If you are young, you’ll most likely be better off with a flexible solution. After all, you don’t know whether you’ll need to take a break from your professional life – because you’re having a child or working abroad for longer. During these phases, you won’t be able to pay into your pillar 3a. If you are self-employed, it will also be important to protect yourself from risks such as illness or death. 

If your circumstances change over time, you should be able to adjust your pillar 3a accordingly. If you are normally finding it difficult to save, taking out an insurance policy will ensure that you’ll automatically be putting money aside each month (by direct debit or standing order). 

Generali Tip

If your circumstances change over time, you should be able to adjust your pillar 3a accordingly. If you are normally finding it difficult to save, taking out an insurance policy will ensure that you’ll automatically be putting money aside each month (by direct debit or standing order).