Steuern sparen mit Pensionskasseneinkauf oder Säule 3a: Für wen sich welche Variante eignet

In this report, we will cover the differences between two savings options for retirement in Switzerland: buying into the private pension pillar 3a and making voluntary contributions to the professional or private pension scheme. Both options offer potential tax savings, but they have distinct features that make them more suitable for different individuals.

For those who can afford it, the report suggests that investing in both options may be the best strategy to maximize tax savings.

There are significant differences between the two options. First, the amount that can be saved in pillar 3a is limited. If employed with a pension scheme, the maximum amount that can be saved in pillar 3a is 7,258 Swiss Francs. For those without a pension scheme, the limit is 36,288 Swiss Francs, or 20% of the employee's income, whichever is lower.

Voluntary contributions to the professional pension scheme have a higher limit, with employees allowed to save up to 7258 Swiss Francs in pillar 3a, while those without a pension scheme can save up to 36,288 Swiss Francs or 20% of their income.

Another difference is the flexibility in choosing how to invest the saved money. With pillar 3a, investors can decide how their money is invested, with options ranging from interest-bearing accounts to insurance products and equities. This flexibility allows for potential higher returns, especially over long-term horizons, thanks to the "interest-on-interest" effect.

However, this comes with the risk of investment losses if the market declines, especially for those with a large portion of their portfolio invested in equities.

In contrast, pension scheme savings are managed by the employer, who determines the investment strategy. For younger people who may not yet be employed or insured, pillar 3a can be an attractive option. However, it also carries the risk of investment losses, particularly if the portfolio is heavily invested in equities.

The Swiss pension schemes themselves are currently in good financial health, with high returns driving up the financial reserves. However, there are some concerns about future changes in the system, such as redistributions of funds from active employees to retirees and possible system restructuring. Therefore, younger savers should weigh the risks associated with these potential changes before proceeding with their retirement savings.