All About The 3rd Pillar 3B Free
Operation and benefits of third pillar 3B
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3rd Pillar 3B
All the informations about the third pillar 3B
Based on 120 reviews
- Free and without commitment
- 100% independent and transparent
- Data secured and not resold
introduction
The 3rd pillar
3B
The 3rd pillar B is also called free 3rd pillar. It works as a 3rd pillar A, however there are almost no conditions and very few constraints. It only exists with insurance companies and no bank propose this solution.Everybody, whatever the nationality or residence country can invest in a 3rd pillar B. Furthermore, it is not mandatory to work and have an income controled by the AVS (in opposition to the 3rd pillar A)
This solution has 5 main advantages we will detail below.
Who We Are
About Us
3rd Pilliar 3A & 3B Specialists
We offer you
Our
knowledge
- Team of specialists recognized by the FINMA
- Neutral advice amongst 41 partners
- Free service & no commitment
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- Tailor-made solutions and comparision
- Your own advisor
Duration and
Withdrawals
This type of 3rd pillar has no constraint with regard to the duration. Indeed, you can choose to plan it till you retire, but it is not mandatory. You can either target a shorter goal or and longer. Therefore, it allows you to complete a project in a given time.
Even though the original purpose is retirement for example, you can withdraw the amount of the 3B at any time, without rules in opposition to the 3A. It is not well known, but it is often advised to withdraw the amount partially to continue the contract with the initial conditions. You can even ask for a policy loan with a prime rate if you don’t want to touch the capital accumulated but still need cash flow.
To resume, the 3B has no determined duration and can be withdrawn, fully or partially, at any time and without constraints.
Amounts and
Payment
The free 3rd pillar has no limit with regard to the amount invested. In opposition to the 3A where you can not overcome the maximum amout allowed, the 3B is as it’s name mentions: free.
Indeed, you can invest with a single premium, or with regular payments (per year, semester, quarter or month). You can save the amount freely without minimum neither roof. Depending on your needs, this freedom can be very useful as we will see after.
Guidelines and
Beneficiaries
We hear by guidelines , the policyholder, the beneficiary and the premiums payer. In the 3rd pillar B, all the guidelines can differ from one another. It is very useful and offers a lot of freedom as it allows to subsribe a 3rd pillar for someone else, even out of family, and pay yourself the premiums. With the 3A, it is not possible.
The beneficiary in case of life or in case of death can also be chosen freely, in opposition tot he 3A that follows strict rules.
Deductions and
Taxes
At the federal level, there is no tax deduction on the income with regard to the 3B. Generally speaking, the free 3rd pillar B made with an insurance offers other tax advantages.
First, there is no tax when you withdraw the capital. The only tax is on the wealth with the amount accumulated progressively, which represents a very low tax. Another advantage is that the gains are not taxed. Depending on the investment solution chosen it is not insignificant.
In some cantons you can even deduct your 3B as a “life insurance premium”. Indeed, the tax savings change depending on the canton.
In Genève and Fribourg, the 3B is even deductible from the taxable income up to :
Geneva 3B
- 2’200.- each year for a single person.
- 3’300.- each year for a married couple.
- 900 in addition each year and per child in your tax return.
Fribourg 3B
- 750.- each year for a single person.
- 1’500.- each year for a married couple.
The deduction can go higher for an independant and/or for people who do not contribute neither to a 2nd pillar nor a 3rd pillar A. See our tax returns page
Guarantee and
Pledging
The 3rd pillars A or B are often used in the context of home ownership or for the depreciation / reimbursement of the debt. The 3A, however, is limited to a principal residence. Another advantage of the 3rd pillar B is that it can be pledged for any type of property asset: a secondary residence, a rental appartment, a business loan. This flexibility can be very useful.
Why would you request an
Advise ?
- Make the good choice among our 41 partners.
- Bank or insurance.
- 3rd pillar A or 3rd pillar B.
- Beneficiaries order and succession.
- What are the 4 investment vehicles that exist for a 3rd pillar.
- Safety or return.
- What are the traps to avoid.
- How to choose the 3rd pillar and in which company.
- Our advice and tricks
Sparta Group SA
I used the service for advice on third pillar and I definitely recommend them. I got in touch with David which was very transparent and efficient and gave me a clear overview of the possibilities I have in front of me.
Make the best
Choice
As retirement savings are a long term engagement and the invested amounts impornant, we offer you a free expertise during an appointment.
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