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Old 10.09.2019, 16:26
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can I and shall I cancel 3rd pillar payment for a year during a low income year?

Dear all, would be grateful to have your opinion.
I subscribed to 3rd pillar a few years ago with AXA purely in the purpose of tax deduction and pay a yearly payment of 6'826 CHF

In 2019 I had low income due to not having a stable job. It wouldn't really allow me deduct any tax any more, based on the current estimation. (As I will start next week a 3 months job but salary not sure as based on hours)

1. Am I allowed to cancel payment for one year in the 3rd pillar payment? If not the option would be cancel the whole policy and go back with them for example in 2020 when I once again have a stable job?

2. If I am allowed to do above, is it in my interest to do it? I kind of have enough money in my UBS bank account, most of them sit on the saving accounts with almost 0% interest.
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Old 10.09.2019, 16:30
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Re: can I and shall I cancel 3rd pillar payment for a year during a low income year?

Depends on what you chose. If it is for example an investment fund, just do not pay this year.

If it is a life insurance, then you are stuck.

Check with the provider for any pitfalls?
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Old 10.09.2019, 22:36
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Re: can I and shall I cancel 3rd pillar payment for a year during a low income year?

Cancel take the penalty and if you want a 3a don’t go with these products.
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Old 11.09.2019, 10:39
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Re: can I and shall I cancel 3rd pillar payment for a year during a low income year?

Check your contract, some 3a products from insurances allow you to skip paying for a given year with the money paid by the insurance if you're jobless.

That said, I would never use an insurance for 3a. Depending on your age it may still be a good idea long-term to cancel the whole thing and take the hit.
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Old 11.09.2019, 11:19
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Re: can I and shall I cancel 3rd pillar payment for a year during a low income year?

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Check your contract, some 3a products from insurances allow you to skip paying for a given year with the money paid by the insurance if you're jobless.

That said, I would never use an insurance for 3a. Depending on your age it may still be a good idea long-term to cancel the whole thing and take the hit.
Can you please explain the rationale behind "I would never use an insurance for 3a"
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Old 11.09.2019, 11:55
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Re: can I and shall I cancel 3rd pillar payment for a year during a low income year?

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Can you please explain the rationale behind "I would never use an insurance for 3a"
Yes I love to hear a well thought out argument on that as well and particular how such individuals cover the risks that such a policy covers to ensure that they actually have sufficient savings in old age, if they were incapacitated in early life and were unable to continue their annual savings.
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Old 11.09.2019, 13:03
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Re: can I and shall I cancel 3rd pillar payment for a year during a low income year?

call your advisor ad check the terms and ask about potential consequences
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Old 11.09.2019, 14:12
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Re: can I and shall I cancel 3rd pillar payment for a year during a low income year?

I signed for 3a pillar with AXA just couple weeks ago.

I know that in my contract I need to pay for the first 5 years without a break but then I can skip or pause the payment at any point for any reason.

The best would be to talk to your agent (if he/she is still at AXA) or find someone there who can advise.
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Old 11.09.2019, 16:48
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Re: can I and shall I cancel 3rd pillar payment for a year during a low income year?

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Can you please explain the rationale behind "I would never use an insurance for 3a"
It's been discussed many times over. Search the forum for "3a" and look for threads with titles like "can't get out of my 3a without losing everything paid in so far".

Using an insurance 3a product does have (a few rare) advantages but usually they're dwarfed by the disadvantages. In like 99% of the cases it's safe to say you want to use a bank product instead, assuming 3a is something for you in the first place.
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Old 11.09.2019, 17:32
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Re: can I and shall I cancel 3rd pillar payment for a year during a low income year?

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I signed for 3a pillar with AXA just couple weeks ago.
Poor choice.
Cancel the contract ASAP and cut your losses early.

If you want risk (life) insurance, buy insurance separately. If you want 3a, go to a Bank or VIAC.
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Old 11.09.2019, 17:44
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Re: can I and shall I cancel 3rd pillar payment for a year during a low income year?

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Poor choice.
Cancel the contract ASAP and cut your losses early.

If you want risk (life) insurance, buy insurance separately. If you want 3a, go to a Bank or VIAC.

Highly agree. Keep your savings and if you have additional worries the best is a separate insurance that doesn't take from your potential earnings in a separate 3a.


Also VIAC...
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