Once you own property, if that's part of your plans, you can use 3a every five years to downpay the mortgage. That makes it just about the best investment there is given that the return due to the reduced tax is known in advance and guaranteed.

Taxation rates going forward are not guaranteed.

For me the logical thing to do with pillar 2 is to have a relatively conservative default option, possibly with an age/risk dependency (more risk at a younger age).

Then, you should be able to change the default to change your risk tolerance with predetermined strategies, and then even to avoid the prepackaged options and simply to invest in any fund you like - but on your head be it.

I think this is what I will do

Yes, and since we already have AHV in theory you're protected from being penniless.

Perhaps a step in this direction is to have some amount which is relatively conservative (pillar 2a) and the rest being flexible (pillar 2b) but still tax exempt.

It only makes sense if your pension return is less than your mortgage rate plus wealth tax.

Given current low mortgage rates that would be crap even by old 3a standards never mind new 3a funds.

You don't have to wait until retirement. There are various options for getting the 3a out early.

What exactly have they compared against?

Of course if they chose the idiotic active funds by banks (at 2.5% and underperforming the market) that it's a robbery.
With these new solutions you can get much closer to a good diversification (especially paired with your investments outside of the 3rd pillar), and then add the tax-free (or deferred to be precise) dividends, tax refund per year, and remove the still-slightly-too-high maintenance fees.
And you are not too far off from investing outside.

I wouldn't call it crap, it's a close call at worst, but depending on your current income tax rate I'd say.

Same tax advantages as VIAC
https://viac.ch/en/academy/lower-fee...igher-returns/

Not a formal one of course. But given how long changing one takes you're on the safe side when acting on it.

I didn't actually know about the early withdrawal fee from VIAC (and Finpension as mentioned).

I imagine it might be possible, before withdrawing, to transfer the pension to a cash account at a bank (e.g. UBS), and then withdraw? I don't believe they have an early withdrawal charge.

I am sure you will, I paid 500 every time I moved my CH Pillar 2 & also 500 on redemption. I can't think they will rip you off less with Pillar 3

moved from PF 3a to Viac and there was no fee.

Moving between different 3rd pillar providers should be free.
(Early) withdrawal from it will be charged, I believe with every provider (and would be surprised if UBS wouldn't charge it TBH )

I also moved from UBS to VIAC for free

Additional question (will ask VIAC directly if nobody knows):

With VIAC you can have multiple accounts one login (for spreading withdrawals for tax reasons).

Now I'm thinking, will they charge 300 CHF to early withdraw from each of those? Could add up to a significant amount if you have many accounts.



By the way, just found out UBS also charge 300 CHF for early withdrawal: "You pay a fee of 300 Swiss francs per account. "

Adds up to CHF 1500. More than 5 accounts are not needed for regular withdrawal. If you expect or plan early withdrawal than it does not make sense to have multiple accounts.

You can close them one by one as needed after retirement. Spreading the withdraal then will reduce your tax. Have not done the maths but likely that the saving is more than the 300 CHF.

But early withdrawal is different.

Can you link that article? From what I know (and also what I read), pillar 3a can be effective both if you're close and far away from retirement:

• Close to retirement: you benefit mostly from income tax deductions (in essence you make a return equal to your marginal tax rate, which you save)
• Far from retirement: you benefit mostly from tax exemption on dividends