smzh blue logo

3rd pillar: Private provision (pillar 3b)

Pillar 3b is the flexible private provision in Switzerland and complements pillar 3a. It makes it possible to create wealth independent of legal restrictions and offers a variety of investment and provision options. Pillar 3b is an ideal solution for individuals who wish to save flexibly in addition to pillar 3a or invest with a specific goal in mind, for instance to provide for their family, to finance eduction, or to buy a home.

image - desktop

Main characteristics of pillar 3b

Flexibility

No restrictions in terms of maximum contributions, purpose, or time.

No tax deductions

Contrary to pillar 3a, payments toward pillar 3b cannot be deducted from taxable income.

Variety of investment options

Assets in pillar 3b can be invested in funds, life insurance plans, real estate, or direct investment products.

Independent from retirement age

Capital in pillar 3b can be used at any time.

How to proceed

1

Requirement analysis and goal-setting

  • Defining your personal goals:

    • Building capital for long-term projects such as retirement or child education.
    • Financial protection for family in the event or death or disability.
    • Maximum flexibility regarding short-term or medium-term spending.

  • smzh helps you analyze your requirements and develop an appropriate strategy.

2

Selection of suitable solutions

  • Life insurance:

    • Combination of saving and risk protection (e.g., death or disability benefits).
    • Suitable for individuals who seek additional security.

  • Funds or investment products:

    • Possibility to invest in funds that can achieve high returns.
    • High degree of flexibility in terms of payments and withdrawals.

  • Direct investments:

    • Purchase of real estate, precious metals, or other real assets.
    • Individual monitoring and use of assets.

  • smzh provides advice in selecting appropriate instruments, aligned with your goals and risk appetite.

3

Tax aspects of pillar 3b

  • No tax deductions of contributions: Unlike pillar 3a payments, pillar 3b payments cannot be deducted from taxable income.

  • Taxation of returns:

    • Capital gains such as interest income or dividends are subject to tax.
    • In case of life insurance plans, withdrawal may be exempt from tax if certain conditions are met (e.g., after completing 60 years of age).

  • smzh helps you understand and optimize the tax implications of pillar 3b.

4

Long-term planning and adjustment

  • Periodic review of the strategy to adjust it to changed circumstances (e.g., marriage, childbirth, property purchase).

  • Integration of pillar 3b into your overall retirement provision to ensure an optimal balance between security, return, and flexibility.

Video on pillar 3b

Lieber Alf, wie hast du deine Altersvorsorge geregelt? - desktop

Dear Alf, how does your retirement provision look?

In this video, Alf speaks about his retirement provision, openly, honestly, and a bit tongue-in-cheek. It's worth watching!

(in German)

Watch the video
image - desktop

smzh for you

Your advantages with smzh for pillar 3b:

  • Tailored solutions: We analyze your objectives and find customized pension and investment products that best suit your needs.
  • Flexible strategies: Advice on short-, medium-, and long-term savings or investment strategies.
  • Extensive network: Access to attractive investment products and insurance solutions tailored to your situation.
  • Tax optimization: Guidance on the tax implications and potential benefits of pillar 3b.
  • Holistic retirement planning: Integration of pillar 3b into your existing retirement structure to ensure comprehensive coverage.
Contact us

We handle questions such as those shown on the right on a daily basis. You don't need to deal with them by yourself – our 360° Check-Up is free of charge and non-binding.

Contact us

    Pillar 3b is unconstrained and offers greater flexibility in terms of contributions, use of assets, and availability. However, contributions are not tax-exempt, unlike contributions to pillar 3a.

    Pillar 3b is ideal for individuals who would like to build capital flexibly, require additional risk insurance, or wish to broaden their pension solutions.

    Depending on your goals and risk appetite, you may invest in life insurance plans, funds, real estate or other asset classes.

    Yes, capital returns from pillar 3b are subject to tax. Exceptions only apply to life insurance plans provided that certain conditions are met.

    We advise you personally on the various options, optimize your investment strategy, and integrate pillar 3b into your overall retirement planning.