The aim of the 3rd pillar is to create a financial cushion through investments before retirement. This ensures that the accustomed standard of living can be maintained in old age or that a long-cherished dream, such as the purchase of a single-family home, can be fulfilled. It is therefore a matter of financial security and freedom in old age.
There are two pension plans available to you - the tied pillar 3a and the free pillar 3b – available. But what are the biggest differences? We answer these questions for you below.
"The imputed rental value has been abolished: For many home owners, this makes it worth bringing forward planned renovations such as facade renovations, new windows, or a new kitchen. Those who act now can save several thousand francs in taxes."
The imputed rental value is an important component of Swiss real estate taxation. Homeowners pay tax on a fictitional rental income if they live in their own property. Renovation work can impact imputed rental value and one's tax burden – in both a positive and a negative way.
