Several 3a accounts

Is It Sensible to Have Several 3a Accounts? If Yes, How Many?

Anyone who distributes their pension capital between several 3a accounts will be able to optimize the tax implications of these withdrawals in many cantons. In addition, it is possible to adjust the withdrawal better to meet individual needs, especially in the case of early retirement.

In fact, although pension contributions are deductible, the corresponding benefits are taxed at a reduced rate separately from income upon withdrawal. In most cantons, the tax burden is progressive and is structured according to the amount withdrawn. The higher the benefit withdrawn, the higher the tax rate. In the five years before the statutory retirement age, the tax progression can be reduced by planned staggered withdrawals from different 3rd pillar pension accounts in the individual tax periods. 

Flexibility for Early Withdrawal

A pension account – 3rd pillar can only be withdrawn in full in each case – no partial withdrawals are possible. As a result, several accounts offer greater flexibility if you withdraw the retirement savings because the money can be withdrawn from the different accounts at different times.

Differences between Cantons

Although there are no restrictions on the permitted number of 3a accounts, two to three accounts per person represent a good solution in most cases. However, taxation practice may vary from canton to canton. It is advisable to check the taxation practice in the canton of residence and your personal situation in detail at an early stage so that several 3a accounts can be set up in the most effective way.