Pillar 3b
A 3b pillar to suit you
Switzerland's pension system is based on three pillars. While the first two are compulsory, the third is optional and is divided into two categories: the pillar 3a (restricted pension plan) and the pillar 3b (unrestricted pension). Pillar 3b stands out for its flexibility, allowing you to save without any specific constraints, whether for retirement, property acquisition or any other personal project.
First and foremost, we take the time to listen to you.
During a first exchange, we address:
your financial situation (income, expenses, taxes),
your projects (property acquisition, early retirement, provision for your loved ones),
and your risk profile.
On this basis, we'll work with you to build a 3b strategy tailored to your reality and your projects.
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insurers (insurance life risk pure, life mixed, products from investment with or without guarantees),
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banks and managers assets (portfolios investment no related, products flexible),
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or from models hybrids, combining savings, investment and foresight.
You receive a reasoned selectionwith:
concrete projections (maturity value, return scenarios),
an explanation of fees (funds, contracts, risks),
and a contract you understand in detail.
All you need to know about unrestricted pension plans
Explore our articles on private pension provision (3rd pillar B) in Switzerland.
Frequently asked questions about Pillar 3b
Here are the answers to the most frequently asked questions about unrestricted personal pension plans.
There is no regulatory limit to the number of 3b contracts a couple can hold. Each spouse may take out one or several contracts in their own name, depending on their needs.
However, it is advisable to coordinate solutions so that they are complementary and tax-optimized.
Yes, if you are a cross-border worker and a tax resident in France, you are in principle required to declare 3b-type contracts (life insurance, savings, etc.) to the French tax authorities.
The rules vary according to the nature of the contract and the amount saved. A personalized analysis is recommended to avoid any risk of double taxation or non-compliance.
Yes, in Geneva, Pillar 3b premiums can be deducted of your taxable income, within certain limits set by cantonal legislation.
The deductible amounts are as follows:
- CHF 2,232 for single people (single, widowed, divorced or separated).
- CHF 3,348 for married couples.
These amounts may be doubled if the taxpayer or taxpayers are not affiliated to a pension fund (LPP). If only one of the spouses is affiliated, the limit is increased to 1.5 times the basic amount.
The deduction is also increased by 900 CHF per dependant.
For example: a single parent, not affiliated to a pension scheme, living alone with dependent children, can benefit from double the deduction, plus the increases for family dependants. If only one of the spouses is affiliated, the increase per dependant is raised to CHF 1,350.
1. Capital tax (during the contract)
The capital saved in a 3b pillar is subject towealth tax for the duration of the contract.
This tax depends on your canton of residence and only applies above a certain wealth threshold:
- In Geneva from CHF 87,632
- In Vaud from CHF 58,000
- Rates and progressiveness vary from canton to canton.
2. Tax on withdrawal
The capital withdrawn from Pillar 3b is tax-exempt on capital benefits under certain conditions :
- The contract must last at least 5 years (or 10 years if linked to investment funds).
- Withdrawal must take place after age 60.
The contract must have been concluded before age 66.
If these conditions are met, capital withdrawals (including surpluses and returns) are tax-free.
3. Taxation of life annuities
As of January 1, 2025, life annuities from pillar 3b will be taxed at 4% of taxable income (compared to 40% previously).
However, the profit participation remains taxed at 70% as income.
Yes, pillar 3b is flexible, which means you can withdraw your funds at any time, according to the conditions of your contract.
However, some products (such as life insurance with savings) may involve exit fees or a loss of return in the event of early withdrawal. So it's important to choose a solution in line with your investment horizon.
Yes, absolutely. Pillar 3b is complementary to pillar 3a. It can cover needs that the 3a does not allow (flexibility, family protection, capital accumulation not tied to retirement). It is particularly useful if you have already reached the 3a deduction limits or if you have no professional income.
No, unlike at pillar 3a, the pillar 3b is not capped. You are free to save visit amounts that you please, according to your capacity financial and your objectives.
It all depends on the type of product you choose. An interest-bearing savings solution offers greater security but limited returns. Products invested in funds offer a higher potential return, but with some volatility. Hence the importance of independent advice to assess your risk profile.
Why choose Invexa?
Invexa will work with you rigorously, ethically and objectively to optimize your retirement and personal finances, without any conflict of interest.
Independent advice
Invexa is not affiliated with any bank or insurance company. We are on your side, defending your interests to the best of our ability.
Results-oriented approach
We'll help you make concrete, realistic decisions that are consistent with your tax, business and family situation.
Expert advice
Our advisors are specialists in their field and hold qualifications recognized in Switzerland.
All-round Support
Our team is at your disposal to advise and support you at all times, for simple or complex situations.
What is Pillar 3b?
Pillar 3b is part of private pension provision in Switzerland. Unlike pillar 3a (linked to retirement and governed by strict rules), pillar 3b is a form of flexible pension planning: it is not subject to uniform tax regulations and offers great flexibility. It can take the form of insurance products, savings accounts, or more dynamic investments, depending on your needs and personal situation.
What are the differences between Pillar 3a and 3b?
Pillar 3a is limited to people exercising a gainful activity in Switzerland, whereas pillar 3b is open to everyone. Contributions to pillar 3a entitle you to tax deductions, which is generally not the case for pillar 3b, except for certain cantonal exceptions. Finally, pillar 3a is subject to strict rules for withdrawals, while pillar 3b allows freer access to funds.
Pillar 3b benefits
Pillar 3b is attractive for its flexibility and ability to adapt to specific objectives:
- Flexible payments and withdrawals: you save according to your means, with no ceiling or time limit.
- Freedom to choose beneficiaries: unlike 3a, you are free to decide who receives the funds or the insured benefit.
- Accessible to all: Pillar 3b is open to salaried employees, the self-employed, students, pensioners and those not in gainful employment.
- Shape flexibility: unlike 3a, all forms of savings and investment are possible.
What products are available in 3b?
The most common products include:
- Life insurance, pure or mixed risk with variants
- Immediate or deferred life annuities
- Savings or investment plan with or without insurance guarantees
- Free bank savings accounts, interest-bearing at low rates
- Fund portfolios / securities accounts
- Customized wealth management solutions
The right product depends on your profile
The choice of a 3b solution depends on several factors: your age, your investment horizon, your need for security or return, as well as your personal objectives or projects (family protection, retirement savings, capital accumulation).
At Invexa, we analyze these criteria with you to guide you towards the most appropriate combination, without commercial pressure, and with total independence.
Get advice
Make a free appointment with one of our insurance experts for personalized advice.
