3rd pillar 3B in Geneva

3rd Pillar 3B Free in Geneva

The 3B, also known as the 3rd pillar libre, is a private savings plan offered by insurance companies with the aim of achieving a life goal or improving one’s future retirement. This makes it an extremely attractive solution, especially in Geneva, and we’re going to find out why.

What 3rd pillar 3B investments are available in Geneva?

The traditional 3rd pillar will give you a minimum guaranteed amount. In fact, this amount is insured independently of the financial markets or the company’s results, guaranteeing you protection even in the event of a crisis/bankruptcy. What’s more, the insurance company will pay you the surplus for your 3rd pillar. These surpluses are a form of profit-sharing and are not guaranteed. They are currently at 2% per annum. This is the most attractive solution if you’re looking for a guarantee. 

This solution is the opposite of the traditional one. This is a dynamic solution in which all your savings are invested in the stock markets. Although it’s much riskier (there’s no minimum guarantee), it also offers the biggest potential gains. Currently, you can earn between 8% and 12% a year on a 3rd pillar investment fund. 

The mixed 3rd pillar is a combination of a traditional 3rd pillar and an investment fund 3rd pillar. In fact, you will choose a % of minimum guarantees between 10% and 80% and the remainder will be invested in the financial markets. For this reason, this solution is highly attractive, offering yields ranging from 4% to 10% with minimum guarantees in the event of a downturn in the financial markets.

What is the tax deduction for a 3B in Geneva?

We are fortunate to be able to deduct our 3rd pillar 3B tax in Geneva, making it one of the most attractive investments in 2024. The maximum deductible amounts for a 3rd pillar 3B in Geneva are as follows : 

Asingle  resident in the canton of Geneva can deduct : 

  • CHF 2,200 if affiliated to a 2nd pillar pension fund. 
  • CHF 4,400 if not contributing to a 2nd or 3rd pillar 3A plan

Couples married or in a registered partnership can deduct :

  • CHF 3,300 for a couple both affiliated to a 2nd pillar pension fund. 
  • CHF 4,950 if one of the two does not contribute to a 2nd or 3rd pillar 3A plan
  • CHF 6,600 if both do not contribute to a 2nd or 3rd pillar 3A plan

For each child, the tax-deductible amount will increase by :

  • an additional CHF 900 if both parents are affiliated to a 2nd pillar pension fund. 
  • CHF 1,350 if neither parent contributes to a 2nd or 3rd pillar 3A plan
  • CHF 1’800.- if both parents do not contribute to a 2nd or 3rd pillar 3A plan

The total amount of deductions applies to the household as a whole. In fact, it is possible to put it on a single person and deduct it from the family’s tax return. In addition, it is always possible to make a 3rd pillar 3A in addition to its 3rd pillar 3B and thus increase its tax deductions. 

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What are the

contractual conditions for a 3B in Geneva?

Geneva’s 3rd Pillar Libre 3B is very flexible. Unlike Pillar 3A, the rules surrounding it are flexible. Below, we take a look at the contractual framework for 3B in Geneva.

The duration is entirely up to you. So you can choose to do it for the short term or for retirement. The fact that it can only be taken out as an insurance policy means that it needs to run for 8 to 10 years to be worthwhile. In fact, insurance policies penalize short-term surrender or termination of the solution, and you should always carefully analyze the surrender value table.

There is no maximum amount for a 3rd pillar 3B in Geneva. You are free to choose how much you want to save. However, it is advisable to aim for the maximum tax-deductible in order to benefit from tax optimization and reductions. The minimum amount depends on the solution and the insurance company, and is generally CHF 100/month. 

The 3B in Geneva lets you withdraw your credit freely. You’ll have the option of withdrawing all or part of it without having to justify anything, unlike the 3A. Once again, beware of surrender values, as before 10 years, you’re likely to lose out.

What are the

3B’s risk coverage in Geneva?

A 3rd pillar 3B in Geneva also offers attractive risk/protection coverage. In fact, you can choose whether or not to include 3 types of protection. However, it’s important to know that while they are generally recommended, they are not compulsory either. Let’s find out how they work.

The lump-sum death benefit works like life insurance and is included in your 3rd pillar 3B. From the outset, a fixed sum is guaranteed in the event of death, enabling you to protect your loved ones. What’s more, it’s even possible to freely choose the beneficiaries when this is done in a 3rd pillar 3B in Geneva.

Waiver of premium lets you protect yourself against disability. You can choose a waiting period of 3 months, 6 months, 12 months or 24 months. This period corresponds to the waiting period before the insurance company assumes payment of your premiums for the entire duration of the contract or disability. It’s also an option you can decide whether or not to include.

The disability pension works differently from the waiver of premium. This time you define an amount that the insurance company should pay you in the event of disability. This is an interesting option, especially when your 1st and 2nd pillars are insufficiently covered, but it’s also a costly one. It is therefore advisable to carry out a needs analysis before choosing an annuity amount.

How to get the best
best 3rd pillar 3B in Geneva?

First of all, we recommend that you choose the type of investment that suits you best, between a traditional, mixed or fund-based 3rd pillar. Next, you need to request quotes from all the insurance companies on the market, and compare projections and historical returns.

The company’s investment strategy is also an important consideration, as are the guarantees it offers.

With this in mind, we have developed an online 3rd pillar comparator. You can define your investment profile and receive a personalized comparison of solutions, all free of charge.