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The 3a pillar plays a central role in individual retirement planning in Switzerland. It allows you to build a retirement capital while benefiting from an annual tax deduction of up to CHF 7,258 for employees affiliated with a pension fund in 2026, and up to CHF 36,288 for self-employed individuals.
But it would be a mistake to reduce Pillar 3a to its tax benefits alone.
The Swiss pension system is based on three complementary pillars. The 1st pillar (AHV) and the 2nd pillar (BVG) do more than just provide a retirement pension: both also offer coverage in case of disability and death. This structure is intentional, reflecting a comprehensive approach to retirement planning designed to protect the insured and their loved ones against the three main risks of working life.
The 3a pillar follows the same logic. Its role is to fill the gaps left by the first two pillars, which on average cover a maximum of 60% of your last salary in case of loss of earnings due to illness, and often less depending on your individual situation.
For self-employed individuals not affiliated with a pension fund, the lack of BVG coverage makes this gap even more significant, as they rely entirely on disability insurance.
This is one of the most frequently asked questions when it comes to private pension provision. Yet it's often asked the wrong way. There's no such thing as a universal 3rd pillar that's right for everyone. There is, however, a solution more suited to your personal situation.
The 3rd pillar A has three fundamental objectives:
These three dimensions correspond to the very foundations of the Swiss pension system (1st, 2nd and 3rd pillars).
Some solutions focus on long-term returns (high exposure to equities). Others focus on capital security. Still others combine savings and insurance coverage. The “best” 3rd pillar therefore depends on :
Comparing solutions is essential, as differences in fees, structure and coverage can add up to tens of thousands of francs over a lifetime of savings.
The Swiss 3rd pillar market has changed dramatically in recent years.
Today, there are three main categories of offer:
1. 3a insurance
2. Traditional banks
3. Digital platforms (fintech)
These solutions are based on different logics:
The differences between 3rd pillar solutions can have a major impact on your final capital and level of protection. A variation of just 1 % in annual fees can reduce your accumulated capital by more than 20 % over 30 to 40 years. What's more, the level of risk varies greatly between offers: some invest up to 99 % in equities, while others take a more conservative approach. Last but not least, not all solutions automatically include coverage in the event of disability or death, a central element of any provident plan.
Comparisons can help you avoid two common mistakes: basing your decision solely on the return you receive, and neglecting the insurance aspect. A structured comparison objectively analyzes total fees, fund quality and diversification, institutional soundness, risk coverage and flexibility. The aim is not to designate a one-size-fits-all solution, but to identify the one that really fits your pension profile.
The 3a pillar can be subscribed to through two types of institutions: banks and insurance companies.
1. With a bank, the focus is on building capital through a savings account or investment funds. Contributions are flexible up to the legal limit, and fees can vary considerably depending on the provider, the funds, and the strategies chosen.
2. With insurance, the contract combines savings and risk coverage: loss of earnings, death, and premium waiver. The premium waiver ensures that contributions continue to be paid by the insurer in the event of a prolonged work stoppage, thereby securing the accumulation of retirement capital regardless of the insured’s professional situation.
These two approaches are complementary. For many profiles, their combination represents the most comprehensive strategy: a banking solution for pure growth, and an insurance contract for risk coverage. The choice primarily depends on each insured person’s personal, family, and professional situation.
3a insurances combine retirement savings with risk coverage (death and disability). Unlike purely banking or digital solutions, they incorporate an insurance dimension that complements 1st and 2nd pillar benefits. They are designed for people who want to secure their financial situation while building up long-term capital.
In this category, the ranking takes into account not only potential returns and fees, but also the quality and number of hedges on offer, cost transparency and contractual flexibility.
| PAX Pillar 3a | AXA SmartFlex | Groupe Mutuel VariaInvest | Helvetia Performance Plan | The most flexible Generali 3a Flex | |
|---|---|---|---|---|---|
| Fees | |||||
| TER of available funds Range depending on strategy |
0.15 %
|
0.13 - 0.34 %
|
0.64 %
|
0.15 - 0.85 %
|
0.20 %
|
| Yield reduction Reference scenario - 25 years - offensive strategy - varies according to age and guarantees | 0.65 - 0.80 % | 0.94 % | 1.36 % | 1.80 % | 0.75 % |
| Investment | |||||
| Savings bonus allocation |
10 % equities / 90 % guaranteed
30 % equity / 70 % guaranteed
50 % equity / 50 % guaranteed
|
Up to 100 % shares
Guaranteed / fund mix possible
|
Up to 100 % shares
Guaranteed / fund mix possible
|
Up to 100 % shares
Guaranteed / fund mix possible
|
25 % shares
50 % shares
75 % shares
Up to 100 % shares
|
| Available funds |
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| Maturity projections - CHF 7,258/year - 40 years - insured for 25 years | |||||
| Unfavorable scenario Gross yield: ~0.2 %/year | CHF 289,330 | CHF 240,040 | CHF 265,400 | CHF 196,554 | CHF 234,397 |
| Medium scenario Gross yield: ~7.1 %/year | CHF 913,613 | CHF 1'236'267 | CHF 863,224 | CHF 913,292 | CHF 1'058'317 |
| Favorable scenario Gross yield: ~9.0 %/year | CHF 1'468'458 | CHF 2'031'766 | CHF 1'274'306 | CHF 1'447'798 | CHF 1'673'390 |
| Employee benefits | |||||
| Disability pension (IG) | No | ✓ Available | ✓ Available | ✓ Available | No |
| Bonus release (IG) Continuation of savings in the event of incapacity | ✓ Available | ✓ Available | ✓ Available | ✓ Available | ~ Partial: max CHF 3,000/year |
| Death benefit | No | ✓ Available | ✓ Available | ✓ Available | No |
| Other covers available | No |
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No | No |
| Advantages & disadvantages | |||||
| Key points |
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Note on yield reduction : this is the indicator standardized by the ASA, measuring the annual impact of charges on net return. The figures shown correspond to the reference scenario (policyholder aged 25, offensive strategy) - they vary according to the age at purchase, the guarantees chosen and the capital accumulated. Source : official offers from insurers - data to the end of February 2026.
The 3a pillar in insurance combines two elements in a single contract: tax-deductible retirement savings (like a bank 3a) and risk coverage, including protection in case of loss of earnings, death, or premium waiver.
The bank 3a, on the other hand, is purely a savings and investment product, with no coverage included.
The trade-off for this protection is that fees are charged primarily at the start of the contract, whereas with a bank product they are deducted annually.
Premium waiver is a coverage that takes over the payment of your premiums on your behalf if you become unable to work. Your savings continue to grow normally, without you having to pay anything. This is one of the most tangible advantages of an insurance 3a compared to a bank 3a: in the event of a prolonged work stoppage, your retirement capital remains secure.
Surpluses are a profit participation that the insurer may distribute to policyholders when its financial or technical results exceed expectations—particularly if claims are lower than anticipated or investment returns outperform the base assumptions. Like investment returns, they are never contractually guaranteed: the insurer decides each year whether to pay them and in what amount.
In good years, surpluses can significantly enhance the final capital or reduce the effective premium.
Short-term risk is higher, but over a long horizon (15 to 30 years), equity funds have historically delivered superior returns. For this reason, young savers are often advised to choose a more dynamic allocation, provided they can tolerate temporary fluctuations.
With a high equity allocation, you face a significant risk of capital loss in the event of a stock market crash.
Yes, but only in specific cases defined by law: purchasing a primary residence, permanently leaving Switzerland, switching to self-employment, or disability. Early withdrawal outside of these situations is not possible, and even in the permitted cases, the surrender value may be lower than the contributions paid if the contract is still young.
The capital paid out at maturity is taxed separately from regular income, at a reduced rate that varies by canton and the amount withdrawn. To minimize the tax burden, it is advisable to hold multiple 3a contracts so that withdrawals can be staggered over several years.
Traditional banks offer 3a accounts with guaranteed interest rates as well as pension funds invested in equities and bonds. These solutions generally provide a good balance of security, diversification, and institutional oversight.
The bank ranking is based on a number of key criteria: fee levels, fund quality and performance, diversification, solidity of the institution and flexibility of investment strategies.
| Lowest fees on the market Tellco Pillar 3a | UBS Vitainvest | PostFinance ESG Funds | VZ Index-linked investments | Migros Bank Fund 3a | |
|---|---|---|---|---|---|
| Fees | |||||
| TER funds Range depending on strategy |
0.05 - 1.30 %
|
Liabilities
0.25 %
Assets
1.35 - 1.71 %
|
1.12 - 1.30 %
|
~0.20 % (estimated)
|
0.90 - 1.10 %
|
| Platform costs Excluding TER funds |
0.00 - 0.35 %
|
Liabilities
0.65 %/year
Assets
0 % (TER only)
|
No platform fees | 0.68 %/year | No platform fees |
| Total estimated costs Offensive strategy - all-inclusive - reference for projections |
~0.45 %/year
ex. SPDR MSCI World 0.12% + platform 0.35%
|
Liabilities
~0.90 %/year
0.65% platform + 0.25% TER
Assets
1.35 - 1.71 %/year
TER only
|
~1.25 %/year
Average TER + amortized entry fees
|
~0.88 %/year
0.68% platform + ~0.20% TER estimated
|
~1.00 %/year
TER only, no platform fees
|
| Available funds | |||||
| Investment universe Selection and categories available |
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| Maturity projections - CHF 7,258/year - 40 years - 25-year investor - offensive strategy | |||||
| Unfavorable scenario Gross yield: ~0.2 %/year | CHF 277,000 | CHF 254,000 (liabilities) | CHF 238,000 | CHF 255'000 | CHF 249,000 |
| Medium scenario Gross yield: ~7.1 %/year | CHF 1'324'000 | CHF 1,181,000 (liabilities) | CHF 1'082'000 | CHF 1'187'000 | CHF 1'152'000 |
| Favorable scenario Gross yield: ~9.0 %/year | CHF 2'175'000 | CHF 1,930,000 (liabilities) | CHF 1'761'000 | CHF 1'941'000 | CHF 1'880'000 |
| Advantages & disadvantages | |||||
| Key points |
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Source : official supplier documentation - data to end February 2026.
Yes. Swiss law allows you to open as many 3a accounts or deposits as you wish with different institutions. The annual contribution limit (CHF 7,258 in 2026 for employees) applies to the total of all your 3a accounts combined, not per account.
The advantage of having multiple accounts is tax-related: at retirement, withdrawals are taxed separately, and staggering withdrawals over several years can significantly reduce your overall tax burden.
Over the long term, passive index funds outperform the majority of actively managed funds, after fees. The reason is simple: the fees of an active fund (often 1.00-1.70 % TER) accumulate over 40 years and represent a considerable proportion of the final capital. A difference in fees of 1 % per year over 40 years with a gross return of 7 % represents a difference in final capital of over 30 %.
Unless you have a particular conviction for a thematic or sector strategy, passive funds are in the vast majority of cases the best choice for a pillar 3a bank.
This is the main risk of a Pillar 3a invested in equities. If a market correction occurs in the 2 to 3 years preceding your retirement, you could be forced to sell your positions at a bad time. The rule of thumb is to gradually reduce the equity portion as retirement approaches (usually starting 10 years before maturity), switching to bonds or less volatile investments. VZ offers the possibility of transferring securities into a private deposit at the time of retirement, thus avoiding a forced sale if prices are low. AXA makes it possible to reduce the equity component gradually, 5 or 10 years before the end of the contract.
ESG criteria generally lead to the exclusion of certain sectors that may temporarily outperform during certain market cycles, but also to less diversification. For a Pillar 3a, ESG is primarily a personal values criterion rather than a performance lever. It should not be the main reason for your choice if your priority is return net of fees.
In a bank 3a pillar, the capital available at the time of death is paid to beneficiaries according to the legal order defined by the OPP3: spouse or registered partner first, followed by direct descendants, then parents and siblings. Only the capital actually saved is paid—there is no additional guaranteed sum. This is a key difference from an insurance 3a, where a death benefit can be taken out independently of the saved amount. If protecting your loved ones is a priority, a separate life insurance policy or an insurance 3a with a death benefit should be considered as a complement.
Yes, transfers between banking institutions are possible. The capital must be transferred directly from account to account; you cannot withdraw the funds yourself without triggering immediate taxation. The process is generally straightforward: open a new 3a account with the target institution, then request the transfer in writing. Note: some providers charge exit fees, and if your funds are invested, liquidating positions may take a few business days.
Pillar 3a digital platforms are distinguished by their often low fees, high exposure to equity markets and automated management via application. Their main aim is to optimize long-term returns through broadly diversified portfolios.
In this category, the analysis compares total fees (TER + platform), maximum equity allocation, quality of funds used, cost transparency and ease of use.
| Best fresh VIAC WIR Bank | frankly Zürcher Kantonalbank | Yuh Swissquote | Pilla Credit Agricole Next Bank | |
|---|---|---|---|---|
| Fees | ||||
| Platform costs Excluding TER funds |
0.52 %/year
capped at 0.40 % effective - deducted only from the invested portion
|
0.43 % all-in
all except TER listed real estate funds
|
0.50 %/year
platform fees only
|
0.50 %/year
flat-rate management fee
|
| TER funds Internal cost of funds |
~0.00 - 0.09 %
UBS/Swisscanto institutional index funds
|
~0.00 - 0.04 %
Swisscanto funds - excluding listed real estate funds
|
~0.00 %
Swisscanto institutional index funds
|
0.19 - 0.23 %
ESG index funds
|
| Total estimated costs Offensive strategy - reference for projections |
~0.41 %/year
total commission indicated on the site for Global 100
|
~0.43 %/year
all-in + negligible TER on equity strategies
|
~0.50 %/year
0.50% platform + TER ~0%
|
~0.71 %/year
0.50% management + 0.21% average TER
|
| Strategies & investment universe | ||||
| Maximum share | 99 % | 100 % | 99 % | 95 % |
| Number of strategies available |
Global 20 / 40 / 60 / 80 / 100
Switzerland 20 / 40 / 60 / 80 / 100
Global Durable 20 / 40 / 60 / 80 / 100
+ Compte Plus & Compte 3a cash
|
frankly Mixed 20 / 45 / 75 / 95
frankly Switzerland 20 / 45 / 75 / 95
frankly Durable 20 / 45 / 75 / 95
frankly Active 20 / 45 / 75 / 95
|
Doux (20 % shares)
Tasty (40 % shares)
Spicy (60 % shares)
Spicy (80 % actions)
Spicy (99 % shares)
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Conservative (≤ 20 % shares)
Balanced (≤ 35 % shares)
Dynamic (≤ 55 % shares)
Growth (≤ 75 % shares)
Capital gain (≤ 95 % shares)
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| Available funds Investment universe |
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| ESG approach available | ✓ Global Sustainable Strategies | ✓ Strategies frankly Durable | ✓ All funds include ESG criteria | ✓ ESG systematic across all strategies |
| Maturity projections - CHF 7,258/year - 40 years - 25-year investor - offensive strategy | ||||
| Unfavorable scenario Gross yield: ~0.2 %/year | CHF 290,000 | CHF 290,000 | CHF 290,000 | CHF 290,000 |
| Medium scenario Gross yield: ~7.1 %/year | CHF 1'338'000 | CHF 1'331'000 | CHF 1'308'000 | CHF 1'240'000 |
| Favorable scenario Gross yield: ~9.0 %/year | CHF 2'198'000 | CHF 2'186'000 | CHF 2'146'000 | CHF 2'030'000 |
| Advantages & disadvantages | ||||
| Key points |
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Note on VIAC fees : management fees of 0.52 % are deducted only from the portion invested in securities, not from the cash portion. The 0.40 % cap applies above a certain capital. The total fee displayed on the site (0.41 %) includes the TER of the funds and is the reference used for projections. Note on frankly: the all-in fee of 0.43 % does not include issue/redemption fees for certain funds or the TER for listed real estate funds. Note on Yuh: certain strategies apply issue and redemption fees in favor of the fund, not included in the platform fees. Source : official supplier websites, data to end February 2026.
| Profile | Combination example | Why this combination |
|---|---|---|
| Young employee Long-term horizon, priority on yield |
Insurance
AXA SmartFlex or Generali 3a Flex
Disability and death protection, equity savings
Bank
Tellco
Pure savings with the lowest fees on the market, global ETFs
Digital
VIAC or frankly
Third account, 100% equity strategy
|
The insurance covers the risk of disability and death from the outset, two real risks over a 40-year horizon. Generali 3a Flex is better suited to irregular income, thanks to its free payments. Tellco and a digital account provide pure savings at the most competitive fees on the market, maximizing accumulated capital over the long term. |
| Family Dependants, need for protection |
Insurance
Groupe Mutuel VariaInvest
Comprehensive coverage: GI, death, survivors' pension
Insurance
AXA SmartFlex
Second long-term yield-oriented contract
Bank
Tellco
Supplementary savings, the lowest fees on the market
|
With dependents, the priority is to ensure the family's financial continuity in the event of disability or death. Groupe Mutuel offers the most comprehensive coverage on the market, with disability pension, death benefit and survivors' pension. A second AXA contract maximizes the return on invested savings. Tellco completes the structure for pure savings without unnecessary costs. |
| Self-employed without BVG No pension fund, major gaps |
Insurance
Groupe Mutuel VariaInvest
Maximum protection: GI, death, survivors' pension
Insurance
AXA SmartFlex
Second long-term yield-oriented contract
Insurance
Generali 3a Flex
Third contract, free instalments
|
Without LOB, the self-employed have no safety net in the event of disability or death. The absolute priority is to cover these risks before thinking about returns. Three separate insurance contracts make it possible to maximize the tax-deductible ceiling (up to CHF 36,288/year), combine maximum protection with returns, and retain flexibility on payments via Generali 3a Flex for years when income is lower. |
| High income Tax optimization on exit |
Insurance
AXA SmartFlex or Groupe Mutuel
Coverage of gaps in earning capacity
Bank
Tellco
One account, one provider
Bank
UBS Vitainvest Passive
Institutional strength, passive funds
Digital
VIAC + frankly + Yuh
One account per service provider, 3 distinct digital institutions
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Spreading savings over 5 separate accounts with 5 different providers allows withdrawals to be staggered over 5 consecutive years, significantly reducing the overall tax burden on exit. Diversification between institutions also provides additional solidity. Insurance remains imperative: the higher the income, the greater and more costly the gaps in disability coverage. |
| Close to retirement From age 50, progressive risk reduction |
Digital
frankly or VIAC
Account 1: strategy 75% shares
Bank
Tellco
Account 2: defensive or bond strategy
Bank
Tellco
Account 3: cautious strategy, low equity exposure
Bank
UBS
Account 4: interest-bearing cash account, opened 5 years before retirement
|
As retirement approaches, market risk needs to be gradually reduced to avoid a correction at the wrong time. Several accounts with decreasing allocations enable exposure to be smoothed out, while maintaining a certain growth potential on the most distant portion. The last account, opened as an interest-bearing cash account with UBS 5 years before maturity, ensures that the portion closest to the exit is not subject to any volatility. Withdrawals spread over several years also optimize taxation. |
Note: these combinations are provided for information only. The optimum number of 3a contracts and accounts depends on your personal, tax and family situation. Independent advice is recommended for complex situations (self-employed, high incomes, estate planning).
Fill in our 3rd pillar quotation request form and one of our pension experts will contact you shortly with a personalized, no-obligation analysis.
There is no single best 3rd pillar, as it’s not necessary to choose just one solution. In Switzerland, it is possible—and often recommended—to hold multiple 3a accounts or contracts simultaneously.
This approach enables :
Diversify strategies (insurance, banking, digital platforms)
Adapt the level of risk
Optimize taxation at the time of withdrawal thanks to staggered payments
Combining returns and risk hedging
The best 3rd pillar is not a single solution, but a coherent strategy built around your profile.
Yes, and this is often a recommended strategy. It is possible to open several 3a accounts or contracts with different institutions. In practice, many specialists recommend dividing up to five of them to optimize the gradual withdrawal at retirement and reduce the tax impact.
Combining several solutions also makes it possible :
Combine insurance coverage with a dynamic investment strategy
Spread institutional risk
Gradually adjust market exposure with age
The question is therefore not whether to choose insurance, a bank, or a digital platform, but to determine the combination that best fits your situation.
Pension provision is based on a balance between returns and risk management. Optimizing returns is important for maximizing retirement capital. But ignoring the risks of disability or death can weaken the overall financial situation.
The best 3rd pillar is one that consistently combines performance, security and protection to suit your profile.
In general, digital platforms boast lower total fees thanks to an automated structure and the use of index ETFs.
Traditional banks may have slightly higher fees, but offer institutional supervision, a personalized customer relationship and sometimes a wider range of funds.
It all depends on your investment horizon and risk tolerance.
Over a long time horizon (20 to 30 years), a high exposure to equities can improve expected returns. On the other hand, a more cautious strategy may be preferable if you are close to retirement or sensitive to market fluctuations.
The best 3rd pillar is one whose allocation matches your risk profile.
Yes, it is possible to transfer your 3a credit balance to another company.
In the case of 3a insurance, on the other hand, early termination may entail charges or a cash surrender value lower than the premiums paid in the first few years.
It is therefore important to analyze the contractual conditions before making any changes.
This depends on the type of solution chosen.
3a insurance may include an annuity or waiver of premium in the event of disability.
A bank account or digital solution does not usually provide automatic coverage. The capital remains invested, but no additional benefits are paid out.
It is therefore essential to analyze the insurance dimension if protection against disability is a priority.
The data presented in this article are based on official sources and a standardized calculation methodology, applied in the same way to all the service providers compared.
For insurance products, projections and fee indicators are based on official offers provided by insurers, calculated for a 25-year-old policyholder contributing CHF 7,258 per year over 40 years, following an aggressive strategy. The unfavorable, average, and favorable scenarios are computed in accordance with the methodology of the Swiss Insurance Association (ASA), using historical market data. The reduction in return, a standardized ASA indicator, measures the annual impact of all fees (entry, management, administration, and fund TER) on net returns. Risk-related fees for the coverages taken are excluded from these projections.
For both traditional banks and digital providers, we have therefore reconstructed projections based on the total fees published by each provider, applying the same three gross return scenarios as for insurance. This approach enables a direct comparison between the two universes on a common basis.
Total fees correspond to the sum of platform fees and fund TERs for an offensive strategy (maximum equity exposure). These fees are deducted annually from the gross compounded return, which correctly reflects their real impact over 40 years.
The TERs used for each provider are those officially published in their reference documents or websites. Where a range exists according to strategy, the TER corresponding to the offensive strategy has been used. For providers whose costs are not officially published, a conservative estimate has been indicated and reported as such.
These projections are mathematical illustrations, not forecasts. They assume a constant gross return over 40 years, regular annual payments and an allocation maintained unchanged. In practice, returns vary from year to year, fees may change, and an investor's strategy often changes with age. The figures presented are intended to illustrate the impact of fees over the long term, not to forecast a precise capital sum at retirement.
