3rd pillar: 3A or 3B?

These two savings solutions are similar in several respects but there are crucial differences in terms of freedom, taxation and inheritance..

In general if you don’t already have a 3rd pillar, it’s probably the 3A that you need because it’s tax-deductible everywhere, and therefore more attractive from a tax point of view.

However, there are cases where 3B may be preferable for example:
 – Passing the benefit on to someone other than yourself
 – In the event of the death of a person who is neither your child nor your spouse
 – Be able to withdraw the amount at any time, without having to meet any of the 3A withdrawal conditions
 – Save more than 3A amounts

In the cantons of Geneva and Fribourg, it’s not uncommon to do both, as 3B is also deductible up to a certain amount.

The following table summarizes the main differences between Pillar 3A and Pillar 3B: