No. The State leaves it up to its citizens whether or not to set aside additional private savings for retirement. Private 3rd pillar retirement savings plans contribute to securing your customary standard of living when you retire especially since income from the 1st and 2nd pillar pension benefits will continue to decrease over time.
You can build up retirement savings capital in the third pillar. The third pillar is subdivided into tied savings (pillar 3a) and free savings (pillar 3b). To encourage private savings, the legislator created privileges such as tax advantages for pillar 3a savings, but also enacted rules designed to tie up such savings capital for retirement. So you cannot profit from the advantages and then spend your money whenever and however you wish. There are no such rules for pillar 3b, nor does this pillar offer any tax advantages.
For one, you can open a 3a retirement savings account. You pay a certain amount into your 3a account each year and earn interest. Or you can invest in a pillar 3a equities portfolio. By investing in equities, you can participate in the performance of the financial market. But that involves added risk.
Absolutely. The State encourages the creation of capital by granting tax advantages. But you can also use private retirement savings plans for death and disability covwerage. The longer you invest in the third pillar, the more capital you save not least given the effect of compound interest. Under certain conditions, you can withdraw this capital before term, for example to finance the purchase a residential property for your own use.
You can open a 3rd pillar account with LibertyGreen if you are over 18, live in Switzerland, and you are subject to AHV/AVS contributions on your income. We offer securities investments from the first franc.
No. There is no minimum contribution. Each year you can decide at your discretion whether you want to pay in at all, and if so, how much. The maximum contribution for 2023 is CHF 7,056 for employees who are members of a pension fund. If you are not member of a pension fund, you can contribute up to 20 percent of your earnings with a maximum limit of CHF 35,280 for 2023.
No. LibertyGreen does not impose a minimum duration. You can structure your contributions as you please and you can terminate your pillar 3a account at any time. In that case, all securities will be sold at the next rebalancing date (at least once a month).
The Federal Council sets the maximum contributions in each case:
- for employees with a pension fund - maximum CHF 7'052
- for self-employed persons (without a pension fund) - maximum 20% of net income or maximum CHF 35,280.
You can transfer the savings contribution by bank transfer, eBill, credit card and standing order.