What is the 3rd pillar?
Before exploring the products, it's crucial to understand the distinction between Pillar 3a and Pillar 3b, as this difference will determine your entire pension strategy.
The Pillar 3a, also known as tied pension provision, is the most attractive tax benefits. Payments are tax-deductible, reducing your annual tax burden. At 2026, an employee with a pension fund can deduce to CHF 7,258, while a self-employed person without a 2nd pillar can receive up to 20% of net income, with a ceiling of CHF 36,288. For the entire duration of the contract, the accumulated capital is not subject to tax.’wealth tax, and at the retirement, It benefits from separate, reduced taxation. This advantageous taxation comes with constraints: the capital remains locked in until retirement, with a few exceptions. exceptions as the’purchase of a principal residence or leaving Switzerland for good.
The 3b pillar, or flexible pension, offers complete flexibility. You can contribute any amount you choose, without a ceiling, and withdraw your capital at any time according to your needs. This freedom comes at the cost of no annual tax deduction, although the capital is generally exempt from tax at the time of withdrawal. The 3b also allows you to freely designate your beneficiaries, unlike the 3a, which imposes a legal order of succession.
Generali's 3rd pillar solutions
Generali structures its pension offering around several product categories, each designed to meet distinct objectives.
Pillar 3a Flex Digital: the online solution
The 3a Flex Pillar represents Generali’s digital banking solution. Fully managed online through the client portal, this product allows you to make contributions with complete flexibility, as much and whenever you want, up to the annual tax-deductible limit.
In case of loss of earnings, Generali contributes up to 3,000 CHF per year to your 3a pillar, ensuring the continuity of your savings. This product is particularly suitable as a complement to an existing pension solution or as a standalone option for your 3a pillar.
Combined savings and protection solutions
The Previdenza Pension and Previdenza Flex Pension are unit-linked mixed insurance policies with periodic premiums. These solutions allow you to save regularly while benefiting from protection in case of death or disability. The Flex variant offers greater flexibility in managing the balance between security and returns.
Capital accumulation with death cover (periodic premiums)
The Scala Pension Insurance and Flex Pension Insurance represent two options for those who wish to build capital while ensuring a death benefit for their loved ones. Available in both 3a and 3b, these mixed products always include death coverage.
Scala offers a structured approach with a guaranteed death benefit, while Flex allows you to freely allocate premiums between a security account (guaranteed) and a growth account (invested in funds). Coverage of premiums in case of loss of earnings remains optional for both products.
Pure savings solutions (capitalization)
The Performa Pension Insurance stands out for its 100% savings focus, without automatic death coverage. This capitalization product includes, by default, coverage of premiums in case of loss of earnings.
Specifically, if you become disabled, Generali continues to pay the contributions on your behalf, thus ensuring the continuation of your savings. This feature makes Performa an attractive option for those who want to focus on capital accumulation while protecting against income loss. Available in both 3a and 3b, this product is particularly suitable for individuals who start their pension planning early.
Risk coverage solutions
For those seeking only a pure risk life insurance, Generali offers PREVISTA, a term life insurance with either increasing or decreasing insured capital. This solution allows the death coverage to be adapted to evolving needs (for example, decreasing capital in parallel with mortgage repayment).
The Loss of Earnings Insurance complements this offering by providing specific protection against income loss, with the option for premium waiver.
Provisions for children (3b only)
The KIDS Child Pension allows you to plan for your children’s future. Available only in 3b pillar, this product offers either an income in case of loss of earnings or a unit-linked mixed insurance with periodic premiums. This solution enables parents to build capital for their child while providing financial protection.
Investment options: available funds
Generali offers several investment plans to adapt the level of risk and return to your profile. The Multi Index 100 fund, with an equity allocation of 89.3%, has historically been the best performer, with an average annual return of 8% since its launch in 2016. Its TER (Total Expense Ratio) of 0.26% remains competitive. For 2024, this fund has recorded a year-to-date performance of 16.0%.
ChatGPT said: The other Multi Index funds (40, 30, 20, 10) offer decreasing equity allocations for more conservative profiles. Generali also offers Tomorrow Invest 100, a sustainable investment plan focused on Swiss companies committed to an ESG (environmental, social, and governance) approach.
Beyond these strategic plans, the insurer offers a full range of funds: GENERALI Short Term Bond Fund, Bond Fund CHF, Equity Fund Switzerland, ESG Equity Fund, Multi Asset Fund, and several other options allowing for geographic and sector diversification.
Pricing structure and fees
In the case of unit-linked life insurance, fees depend in particular on the age at which you take out the policy. The later you take out a policy, the higher the risk and closing costs, since the probability of a claim increases with age. A policy taken out at 25 will always cost less than an identical policy taken out at 45. This pricing structure makes it particularly advantageous to start saving early, even for modest amounts.
The fund management fees vary depending on the chosen plan, with TERs ranging from 0.26% for Multi Index 100 to higher levels for certain actively managed funds. These fees directly affect the net return of your savings over the long term.
Generali 3rd pillar comparison
- Product
- Type
- Death benefit
- Premium coverage for loss of earnings
- Pillar 3a Flex Digital
- Scala
- Performa
- Flex
- Previdenza Flex
Combined insurance
Yes
Variable
- Previdenza
Yes
Variable
- CONFORTA
Single premium (3b)
Yes
- PREVISTA
- KIDS
Variable
Compare 3rd pillar products
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Conclusion
Generali indeed offers a wide range of solutions for the 3rd pillar in Switzerland, ranging from simple digital products to mixed insurance policies. Each product addresses needs such as pure savings, family protection, management flexibility, or a combination of multiple objectives.
Before subscribing, it is recommended to compare several market offers and consult an independent financial advisor to ensure that the chosen solution truly fits your personal situation and long-term goals. Subscribing to a 3a pillar represents a commitment over several decades; taking the time to choose wisely is an investment in itself.
Frequently asked questions
Yes, it is possible to subscribe to multiple 3rd pillar contracts, within the annual tax-deductible limit for 3a. For example, you could combine a 3a Flex Digital Pillar with a Scala insurance to maximize both savings and protection.
Depending on the product you choose, you usually have several options: reducing the premium amount, temporarily suspending payments, or converting the contract into a paid-up policy. The exact conditions depend on the product and the general terms and conditions.
Yes, transferring a 3a pillar to another institution is possible, although some insurers apply transfer fees or surrender penalties. For 3b insurance, the transfer is more complex, as it often involves redeeming the existing contract (with potential losses) and then subscribing to a new one. It is important to calculate the costs carefully before making such a transfer.
Historical fund performances (such as the 8% p.a. of the Multi Index 100) are indicative but not a guarantee of future performance. Financial markets fluctuate and results can vary considerably from one year to the next. These figures are used only to understand the fund's risk profile and track record.
