Since the State encourages private retirement plans through tax incentives, pillar 3a accounts are an excellent way to save taxes. The higher your income bracket, the greater the tax-saving effect. This is because of Switzerland's progressive tax system: taxes do not progress linearly but progressively as your income rises.
Pay in before the end of the year and save taxes
Gainfully-employed persons who are members of a 2nd pillar pension plan and live and pay taxes in Switzerland have a tax-deductible allowance of CHF 6,566 for contributions to a pillar 3a savings plan. For persons without a 2nd pillar pension plan, the tax-deductible allowance is CHF 32,832. Earnings in pillar 3a plans are not subject to income or withholding tax.
The higher your earnings before retirement, the more important a pillar 3a plan
Not only does a 3rd pillar plan enable you to save taxes, it will contribute significantly to securing your lifestyle once you retire. Pillar 3a retirement savings can make up for any gaps in benefits which are not covered by the AHV/IV // AVS/AI or compulsory BVG/LPP occupational pension plans. The higher your pre-retirement earnings, the more important it is to have 3rd pillar supplemental benefits once you retire.
Liberty clients have many advantages
Liberty helps you build up your retirement savings capital while maximising flexibility. We offer attractive interest rates and inexpensive securities solutions. You decide the investment strategy. You can pay funds in to your Liberty 3a account until 27 December. If you are leaving Switzerland permanently and liquidating your 3a account, Liberty offers the lowest withholding tax rate in Switzerland.
Open your 3a retirement savings accounts online
To make sure you have your 3a account quickly, we have expedited account opening procedures. With the new online form, you can now open your Liberty 3a account quickly and easily.