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Let's face it: The 3rd pillar. Caveo’s simple guide.


Let's face it: The 3rd pillar. Caveo’s simple guide.

"Retirement planning - a topic for when you're old". Although that may be true, now is the time to start taking care of it. This is the exact reason a 3rd pillar is absolutely worth paying into.

Let’s take a look behind the scenes. Find answers to the most important questions about pillar 3a here.

What is the 3rd pillar?

In addition to the 1st and 2nd pillars, the 3rd pillar is the private, "voluntary" pension plan. It protects you from financial gaps in old age. And that is important. Even if you have a good income, there can be gaps in your retirement benefits in old age. And not only for that sailboat you’re planning on buying. Why? Because of the rising living costs and inflation.

No matter which job you may have - everyone has the same option of paying a certain annual amount into a retirement savings account 3a with a bank or insurance company. Thus saving a lot of money in the process. Another huge advantage of the 3rd pillar is that this annual contribution can be deducted from your taxable income. Depending on where you live, the amount of your income and the amount you pay in, you can save up to CHF 2,000 in taxes each year.

How much do I have to pay in annually?

The following maximum amount applies for 2021: For those insured within a pension fund, 6,883 francs. Without a pension fund, the maximum is 34,416 francs (or a maximum of 20% of net income). The annual contribution must be paid into the 3rd pillar by end of the year to ensure it’s tax deductible.

Who does 3rd pillar make sense for?

For everyone! Many employees and self-employed persons pay the maximum amount into Pillar 3a every year, as this saves them a lot in taxes. As a general rule, the higher the income, the greater the tax savings.

Can benefits be withdrawn earlier?

Yes, under the following circumstances:

- Self-employment.

- Financing of a home.

- Repayment of a mortgage.

- Move abroad.

- Disability or death.


That's it. Actually much less complicated than you thought, right? As a Caveo client, you're in the best hands with all your pension topics. We’ll take care of all the paperwork and tailor a pension plan that perfectly suits your personal situation.

Allowing you to lean back now - and even more when you reach your retirement!

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