Investing in securities through a pillar 3a scheme is the ideal way to save for retirement, especially when your own retirement is still quite a long way ahead. In today's low-interest rate environment, investing in securities is a worthwhile alternative for your retirement savings provided you have the relevant risk capacity.

Your savings contributions are fully tax-deductible. Interest credits (in the case of a classic account solution) and unrealized capital gains (in the case of a securities solution) are exempt from income and capital tax.

Assuming taxable income of CHF 75,000, for example, for each CHF 1,000 paid in, you can save about CHF 200 in taxes and, given the tax progression, the higher your income, the greater your tax savings.

For 2017, the maximum tax deductible allowance in the pillar 3a is (no adjustment in 2018):

• CHF 6,768 for gainfully employed persons who are members of a pension fund
• 20% of net earnings for gainfully-employed persons who are not members of a pension fund; max. CHF 33,840

To enable us to certify the savings contributions paid in this year, we recommend that you transfer such amounts by 22 December 2017, at the latest.

Please use the transfer instructions which will be individually sent to account-holders at the end of October 2017. If you have given your bank a standing order, we advise you to check it and make any necessary changes.