Pillar 3a account

Pillar 3a is the third element of Switzerland’s three-pillar retirement provision system, alongside state old-age and survivors’ insurance (OASI) and occupational pension provision through pension funds. Taken as a whole, the third pillar also includes pillar 3b.

The two pillars, 3a and 3b, together form the private part of retirement provision. They differ in that pillar 3a is restricted and subsidised by the state, whereas pillar 3b is unrestricted and is not subsidised. This means that as a rule, capital from pillar 3a can only be withdrawn after retirement, while capital from pillar 3b can be freely disposed of at any time.

The purpose of the third pillar is to raise the standard of living of pensioners to the level they enjoyed during their working lives. Pillar 3a is subsidised through tax privileges both during the saving phase and when the capital is paid out. The maximum amount subsidised per year is limited by law.

A pillar 3a account (or third pillar account) is a special type of account that serves only to collect a person’s savings for pillar 3a. Pillar 3a accounts are offered by banks, foundations and insurance companies.

Not all pillar 3a accounts are accounts in the traditional sense that offer a specific rate of interest on the money invested which varies over time. There are also pillar 3a accounts that are similar to a securities custody account and are therefore sometimes referred to as “pillar 3a custody accounts”. Pillar 3a assets are not booked in these accounts as cash at a specific interest rate. Instead, the funds are used to buy units in equity, bond, precious metal or real estate funds whose value may rise or fall over time.

relevate is both a 3a account and a custody account. With us, you can save your third pillar assets as a cash deposit at a fixed interest rate (relevate cash strategy) or invest them (additionally) in different funds (the other seven strategies).

Those who pay the maximum amount into their pillar 3a account each year can enjoy significant tax benefits that ensure a direct return on the savings amount. In addition, there are tax breaks when withdrawing capital at a later date, which means that a private pillar 3a pension scheme can be more lucrative than a purely privately run pension scheme with standard financial products.

Saving in pillar 3a also has psychological benefits. The publicly communicated maximum amount creates an official reference value for the best-case minimum private pension provision per year. Without this figure, it is entirely up to savers themselves to decide how much to put aside.

Furthermore, tying pillar 3a assets to the purpose of retirement provision ensures that pensioners are not tempted to use the money for other purposes and thus jeopardise their standard of living after retirement.

No, there is no depositor protection for cash deposits in pillar 3a accounts (relevate cash strategy). However, pillar 3a assets up to a maximum of CHF 100,000 per client and pension foundation are treated preferentially under bankruptcy law.

No deposit guarantee or preferential treatment is required for 3a assets invested in funds using one of the other relevate strategies, as these assets are classed as special assets. If a bank goes bankrupt, these funds are transferred to the pension foundation.

You can find more information on this topic on the website of the esisuisse association.

Anyone who has reached the age of 18 and is under the age of 64 (women) or 65 (men) can register with relevate.

As a new client, you can open a pillar 3a account in just a few steps:

1. Register and select product
2. Define your risk profile and strategy
3. Make a deposit or transfer

There is no legal limit to the number of 3a accounts. At relevate, you can open up to five different portfolios.

You can open a maximum of five portfolios per policyholder at relevate.

This depends on a number of factors. It is often worthwhile to open another account above an amount of around CHF 50,000.

If you want to open a 3a portfolio as an existing client, you can do this quickly and easily via the “Add product” option.

If you already have the same product, you will be able to apply your existing risk profile and investment strategy to the new portfolio.

Once the account has been opened, we will send you all documents to transfer your 3a funds.

To join the third pillar, you need to be earning employment income in Switzerland on which you pay old-age and survivors’ insurance (OASI) contributions. There is no minimum amount for opening a 3a account with relevate, but 3a funds can only be invested with us from CHF 20. Up to this limit, they will remain in the account as a cash deposit.

You can find more information on this topic here:

Paying into pillar 3a

The “Paying into your portfolio” page will tell you how much you can pay in this year. The “Pay now” button will take you to the payment instructions with the QR code which you can scan in quickly and easily in your e-banking.

As a rule, the maximum amount changes every one to three years. Currently (2023) it is CHF 7,056 for employees and CHF 35,280 or a maximum of 20% of net income for self-employed people who are not members of a pension fund.

You can find more information on this topic here:

Paying into pillar 3a

No, you can determine the amount yourself, as long as it does not exceed the maximum limit. Please also note that pension assets can only be invested with us from an amount of CHF 20. Until this amount is reached, the funds will remain in your retirement account as a cash deposit (relevate cash strategy).

No, we do not charge fees on deposits or transfers.

Yes, only a portion of your pillar 3a capital can be invested in your chosen investment strategy. In this case, the rest remains in the account as a cash deposit (relevate cash strategy).

Yes, the funds can initially remain in the relevate account as a cash deposit (relevate cash strategy). They can then be invested at a time to be determined by the account holder themselves. Trading itself always takes place on a weekly basis on the second bank working day.

Investments at relevate are always carried out on the second bank working day of a week.

If you have paid in more than the maximum amount, the portion in excess of the maximum will be rejected by the tax authorities. You will receive a notification from the tax authorities which you can send to us to arrange for the reimbursement. After receiving it we will reimburse you the excess amount.

No, there is no minimum term for pillar 3a retirement provision at relevate.

At present (as of 2023), it is not possible to pay money into pillar 3a for previous years. However, a change in the law has already been decided. This will be implemented within the next few years and it will then be possible to make retrospective payments into the third pillar.

More information on making retrospective payments into pillar 3a is available here:

Paying into pillar 3a

Yes, provided both partners have employment income eligible for OASI contributions, they can both open a pillar 3a account.

The money in pillar 3a can be paid out at the earliest five years before the regular retirement age of 65 for men or 64 for women respectively. If you continue to work beyond this age, you may defer withdrawing your pillar 3a assets for up to five years.

Earlier withdrawal is also possible in certain cases. You can find out more here:

Closing pillar 3a

At relevate, the account closing procedure is as follows:

1. Select the “Edit” button in the portfolio overview.
2. Now select the option “Close portfolio”.
3. Enter the reason for the closure.
4. We will send you a document template.
5. Fill it in and sign it.
6. Send us the template by post.
7. We will then process your request and pay you your vested benefits.

Yes, you can withdraw part of your third pillar assets early and leave the rest in the pillar 3a account. However, this is only possible for a certain period of time. If there are fewer than five years between the date of the early withdrawal and regular retirement age, the entire amount of an individual pillar 3a account must be withdrawn. However, not all accounts have to be closed at the same time.

This means that if you have several pillar 3a accounts, you can close them in stages even if you will reach retirement age in fewer than five years. In terms of the total capital from pillar 3a, this corresponds to a partial withdrawal, even though the withdrawal amounts are not freely selectable. The withdrawal amounts in this case are the account balances of the individual accounts.

More information on staggered withdrawal from pillar 3a is available here:

Closing pillar 3a

This is an early withdrawal made in the context of the promotion of home ownership (WEF). You can withdraw pillar 3a retirement assets in full or in part in order to finance residential property that you will occupy yourself. It is also possible to pledge the pillar 3a retirement assets for this purpose.

An early withdrawal to buy residential property is permitted every five years.

No, the 3a assets only become payable at the age of 64 (women) or 65 (men). If you continue to work, the payment can be postponed until you stop working, for up to a maximum of five years.

More information on pillar 3a and emigration can be found here:

Closing pillar 3a

In the event of the policyholder’s death, the vested benefits accrue to the statutory beneficiaries. The Ordinance on Occupational Old Age, Survivors’ and Invalidity Pension Provision (OPO 2) and the Federal Act on Vested Benefits in Occupational Old Age, Survivors’ and Invalidity Pension Provision (OPA) determine who those beneficiaries are. By defining an individual order of beneficiaries, the account holder can also influence the sequence of beneficiaries themselves.

You can find more information on this topic here:

Closing pillar 3a

In the event of divorce, the funds from pillar 3a are handled differently to those from the pension fund, as the matrimonial property regime applies here. This stipulates that the pillar 3a assets are divided equally between the parties.

However, third pillar capital accrued before the marriage is excluded from this rule. If a prenuptial agreement is in place, this takes precedence over the matrimonial property regime and the arrangements vary from case to case. It is therefore advisable to seek legal advice in the event of an imminent separation or divorce.

More information on pillar 3a and divorce can be found here:

Closing pillar 3a

The 3a securities in the relevate investment strategies are specially designed for pensions and therefore cannot be transferred to your private assets.

Yes, you can maintain your 3a portfolio after you reach the OASI retirement age. But to do so you must show that you are still in employment. You may only continue to hold the portfolio until the age of 69 (women) or 70 (men). Thereafter the portfolios have to be liquidated and withdrawn.

Pension assets in a pillar 3a account are not subject to income or wealth tax. If the funds are paid out, they are taxed at a reduced rate.

You can find out more about pillar 3a and tax on the following pages:

Paying into pillar 3a

Closing pillar 3a