Why is pillar 3a so important for me?

You might think you’re too young to worry about such things. But you’d probably like to remain independent and decide yourself how you’ll spend your retirement. Saving and investing in the frankly pillar 3a app should help you do just that – without much paperwork or effort.

Invest a few minutes of your time today so that you have optimum financial security in the future. You’ll see that it’s easier than you thought.

To help you understand what the third pillar is, we’ll give you a brief overview of the Swiss three-pillar pension system:

Your future retirement pension is based metaphorically on three pillars (the three-pillar principle), and it aims to ensure the security and quality of your life in retirement.

Pillar 1 = state pension provision

To financially secure your subsistence needs, the first pillar includes various types of compulsory insurance, above all the AHV (Old Age and Survivors’ Insurance). This is Switzerland’s mandatory state pension insurance. It is available for all persons resident or employed in Switzerland. The amount of pensions is controlled by law and depends on the contributions paid in.

Pillar 2 = occupational pension provision

Occupational pension provision from the credit balance of pension funds (BVG) and accident insurance (UVG) aims to secure people’s standard of living in an appropriate manner – whether in the event of an accident or after retirement. Employed persons are therefore affiliated to the second pillar of the Swiss social security system on a compulsory or voluntary basis.

Pillar 3 = private provision (pillar 3a is shown here as an example)
Pillar 3 private provision is an important add-on that secures people’s individual standard of living in the future. Pillar 3a helps employed people to build up their own retirement assets and ensure their personal retirement provision. At the same time, pillar 3a savers benefit from considerable tax advantages. Pension contributions paid can be deducted from taxable income. Saving in a pillar 3a securities solution offers higher long-term return opportunities than with conventional account solutions.

Unfortunately, pensions from the AHV (pillar 1) and pension funds (pillar 2) are often not sufficient to maintain people’s previous standard of living. This is known as the “pension gap”. It means that your future pension will probably only cover 60% of your current income. Pillar 3a is so important because it enables you to close this gap.

To be able to maintain your standard of living in old age, we recommend that you set up a pillar 3 account with frankly. In our pension calculator, we show you how much you can save.