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Old 25.10.2016, 20:53
digitsclimb digitsclimb is offline
Join Date: Nov 2009
Location: Zurich
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Re: Pillar 3a stock funds

This depends again on your age, income and situation. For example if your income is high enough and you are old enough, the annualized return you get from the up front tax savings overcomes the low return you get in the 3a. In fact, this is a great way to lock in a ROR, since in the open market you don't know what the outcome will be. An x% tax savings is money on hand.

The other aspect is the fact that you can pledge your 3a towards 5% of the price of a home. This also increases the effective return.
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