The 3rd pillar of the Swiss social security system is a private and voluntary pension plan that complements the benefits offered by the 1st and 2nd pillars. It entitles you to tax benefits. It will be of great use to you once you have retired. What are the advantages of this 3rd pillar? This is the question that this article will answer.
But first, what are the conditions for opening a 3rd pillar?
Here are the conditions for opening a 3rd pillar:
- Be 18 years old. You are entitled to open a 3rd pillar 3A on the 1st of January following your 17th birthday.
- End of the contract at the legal retirement age. You have the option of bringing it forward by 5 years or postponing it by 5 years.
- You must be gainfully employed with an AVS income and taxed in Switzerland.
The advantages of the 3rd pillar
The third pillar offers you several considerable advantages. It allows you to build up capital for your retirement. Indeed, once you retire, your income is reduced, so you can use the capital you have built up to meet your needs and those of your family.
This 3rd pillar can even help you with your real estate projects. It can also help you to create a company.
You have the possibility of withdrawing the capital built up by subscribing to the 3rd pillar up to 5 years before retirement. Another advantage, this pillar remains available even if you leave Switzerland.
The 3rd pillar also offers you tax advantages from the first contribution, during the entire contribution period and also when withdrawing funds.
Subscribing to the 3rd pillar of the social security system can be very useful after your retirement. You have surely realized this by reading this article. Do not hesitate to subscribe to it.