What is the 3rd pillar?
The 3rd pillar represents individual pension provision in the Swiss system. It complements the’AHV (1st pillar) and the BVG (2nd pillar), which together cover approximately 60% of last salary.
The Pillar 3a, or tied pension plan, allows payments to be deducted from taxable income up to a maximum of legal ceiling (CHF 7,258 for employees in 2026). In return, the capital remains frozen until retirement, unless exceptions provided for by law (buying property, leaving Switzerland, becoming independent).
PostFinance 3rd pillar solutions
PostFinance structures its offering around two products: a traditional savings account and a range of investment funds.
1. 3a retirement savings account
PostFinance’s 3a pension account works like a savings account dedicated to retirement. You can make voluntary contributions with no minimum amount or fixed schedule. Each franc you deposit can be deducted from your taxable income, up to the annual limit.
Key features
- Free opening and management
- Flexible payments (monthly, annual or one-off)
- Remuneration of 0.05% per year
- No cancellation fees
- Free pledging to encourage home ownership
Fees: Opening, managing, and closing the account are completely free. If you withdraw your capital early to purchase a home, PostFinance charges CHF 200 per early withdrawal and per account holder.
Our opinion: PostFinance’s 3a pension account fulfills its primary purpose: allowing a tax deduction. At 0.05% annual interest, the return is, however, very low, even compared to other 3a accounts on the market offering up to 1.25%. Over the long term, inflation erodes the purchasing power of your savings. This product is suitable only for extremely risk-averse individuals or those planning a short-term withdrawal (e.g., close to retirement).
2. PostFinance pension funds
PostFinance offers four ESG pension funds with progressive equity allocations. All of them incorporate environmental, social, and governance criteria in their selection of securities.
PF Pension - ESG 25 Fund
This defensive fund allocates about a quarter of its capital to global equities, with the remainder invested in bonds, Swiss real estate, and money market instruments. The strategy aims for a balance between capital safety and moderate growth.
Features
- Allocation: approximately 25% shares
- Current expenses: 1.12% per year
- Launched in 2001
- Entry fees: 1%
- Long-term performance: approximately 2-3% annualized over 10 years
This fund is suitable for cautious investors who are willing to accept slight fluctuations in exchange for regular income and capital preservation.
PF Pension - ESG 50 Fund
This balanced fund divides capital more or less equally between equities and bonds. It represents a compromise between security and growth potential.
Features
- Allocation: approximately 50% shares
- Current expenses: 1.19% per year
- Launched in 2001
- Long-term performance: approximately 3-4% annualized over 10 years
PF Pension - ESG 75 Fund
This dynamic fund heavily favors exposure to equity markets, with about three-quarters of its capital invested in global stocks. Its goal is strong long-term capital growth.
Features
- Allocation: approximately 75% shares
- Current expenses: 1.24% per year
- Launched in 2016
- Long-term performance: approximately 6-7% annualized over 10 years
This fund targets investors with a long investment horizon (at least 15 years) who are willing to accept significant fluctuations in pursuit of higher returns.
PF Pension - ESG 100 Fund
This aggressive fund invests almost all of its capital in global equities, with maximum exposure to equity markets for a high growth potential.
Features
- Allocation: approximately 95% shares
- Current expenses: 1.3% per year
- Launched in 2019
- Long-term performance: approximately 7-8% annualized over 10 years
This strategy is suitable only for investors with a high-risk profile and a horizon of at least 15 years, who can tolerate potential losses of 30% or more during market corrections.
Fees of PF pension funds
PostFinance does not charge any custody fees or commissions for buying or selling shares. Annual management fees (TER) range from 1.12% to 1.30% depending on the chosen fund. Entry fees of up to 1% may apply depending on the fund.
Positive aspects of PostFinance funds
Systematic ESG approach
No transaction fees
Free buying and selling simplifies management and prevents fees from affecting performance when rebalancing or changing strategy. Nevertheless, it's a common practice these days.
Accessibility
Negative points of PostFinance funds
High management fees
With ongoing fees between 1.12% and 1.30% plus entry fees, PostFinance funds fall within the upper range of the Swiss market. By comparison, some solutions offer index funds with annual fees below 0.50%. Over 30 years, this cost difference can result in a substantial impact on the final accumulated capital.
Modest performance
Lack of strategic diversification
Comparison of the two PostFinance solutions
- Criteria
- Account 3a
- Pension fund
- Main objective
- Average annual yield
- Fees
- Investment horizon
Conclusion
The PostFinance 3rd pillar fulfils its basic function: to enable tax deductions and build up retirement capital within an ESG framework. The systematically sustainable approach and the absence of transaction fees are significant plus points.
However, the high management fees (1.12% to 1.30%) significantly weigh on long-term net performance. For an investor who values simplicity and an established banking relationship with PostFinance, these products may be suitable—especially if the ESG approach aligns with their personal values.
On the other hand, for those looking to optimize their return net of fees over several decades, alternatives with more competitive cost structures are worth considering. The difference in fees, while seemingly minimal annually, compounds over 20 to 40 years and can represent a significant proportion of final capital.
The 3a account at 0.05%, on the other hand, offers virtually no real return and should be avoided in favor of better-yielding solutions.
Would you like to compare 3rd pillar solutions?
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Frequently asked questions
The choice depends on your investment horizon and risk tolerance.
For a short horizon (less than 10 years), choose the ESG 25 fund. For a medium-term horizon (10-20 years), ESG 50 or 75, depending on your risk appetite. For a long time horizon (20 years or more) and a dynamic profile, the ESG 100 fund offers the greatest growth potential, despite high volatility.
The level of risk varies by fund. ESG 25 is a moderate-risk fund with limited fluctuations. ESG 100, on the other hand, can suffer significant declines during market corrections. The latter is only suitable for investors who can accept these fluctuations without panicking.
No, in the vast majority of cases. With inflation around 0.5% per year (2026 forecast, Goldman Sachs), your capital loses purchasing power in real terms.
Other institutions offer 3a accounts with significantly higher interest rates (e.g. CEA at 1.25%), and pension funds offer better long-term growth potential, even allowing for fluctuations.
The deadline to make your contribution to Pillar 3a is December 31 of the current year.
To benefit from the tax deduction on your tax return, you must pay your contribution by the last day of the calendar year. After this deadline, the payment will be counted for the following year.
Historically, equity investments have delivered higher long-term returns than so-called “safe” assets such as bonds or savings accounts. If you have more than 15 to 20 years before retirement, allocating a portion to equities is often recommended to generate stronger returns.
The key is to adjust the allocation to your risk profile and gradually reduce the equity portion as you approach retirement.
Unlike a 3a insurance solution, only the amount actually saved will be paid out. There is no guaranteed death benefit or additional coverage in the event of premature death.
Unlike a’3a insurance, only the amount actually saved will be paid out. There is no guaranteed death benefit and no additional coverage in the event of premature death.
Example: If you have contributed CHF 20,000 at the time of your death, your beneficiaries will receive CHF 20,000 (plus interest). With a 3a insurance policy, they could receive a much higher guaranteed amount, for example CHF 100,000, even if you only contributed CHF 20,000.
