How is the Max life insurance

Tied personal provision (pillar 3a)

The 3rd pillar can be divided into two areas:

  • Free self-provision consists of personal savings, e.g. cash ("Sparstrumpf"), savings book, life insurance, investments, etc. You can freely dispose of your savings at any time. There is no tax privilege.
  • The bound self-provision is that form of provision of the 3rd pillar that is to be promoted in the spirit of the constitutional three-pillar concept through fiscal and property policy.

Pillar 3a was regulated in detail in an ordinance and came into force on January 1, 1987 (Ordinance of November 13, 1985 on the tax deduction entitlement for contributions to recognized forms of pension provision, BVV 3).

Characteristics of pillar 3a:

Pillar 3a is essentially characterized by its tax privileges, which consists in the fact that the contributions to the recognized forms of provision are tax-deductible. However, like those in the 2nd pillar, the benefits are fully taxed. Pillar 3a assets cannot be freely accessed at any time.

Only 2 very specific forms of provision are permitted, namely:

  • The tied pension insurance with insurance institutions;
  • The bound pension agreement with bank foundations.

Anyone who is gainfully employed can set up the forms of pillar 3a pension provision: For employees, pillar 3a supplements their first and second pillar pension plans. For self-employed people, for whom the 2nd pillar is optional, the pillar 3a is of far greater importance: it serves as a substitute for the 2nd pillar. People who receive daily unemployment benefits can also form a pillar 3a.

Persons entitled to form a pillar 3a:

Pillar 3a is open to people who are self-employed or employed and whose income is subject to AHV. People living abroad who work in Switzerland can also accumulate a Pillar 3a balance. Daily allowance recipients of the Swiss unemployment insurance and partially disabled persons who receive an income subject to AHV are also entitled to contributions. For more information, see the