What is Pillar 3b?
Pillar 3b, known as "unrestricted pension provision", is the part of the optional of private pension provision in Switzerland, and complements the pensions guaranteed by the 1st and 2nd pillars. Unlike Pillar 3a, there is no annual payment limit, and capital is fully available at any time, unconditional related to age or use (self-employed, property purchase, personal project, etc.).
What products are available in 3b?
The freedom of 3rd Pillar B means great flexibility in the choice of savings vehicle. life insurancebank account, investment funds or real estate - as well as in the duration and amount of payments. Pillar 3b also offers the possibility of freely designating beneficiaries in the event of death, making it an ideal instrument for topping up retirement income while retaining a high level of financial security. financial reserve accessible for other purposes.
Tax benefits of 3rd pillar B
Although contributions to the 3rd pillar B are not encouraged as much as in 3A via tax deductions, 3b nevertheless offers several advantages.
Tax-free capital on withdrawal
The amount of Pillar 3b (including surpluses and returns) is exempt taxes on lump-sum benefits when he withdraws, if he fulfills the conditions for provident status. That is to say, if it
- Contract duration must be 5 years (10 years if linked to funds)
- Payment is made after age 60
- The contract was concluded before the age of 66
Taxation of life annuities
Since January 1, 2025, life annuities under Pillar 3b have been subject to income tax at a rate of 4% (compared with 40% in 2024).
Participation in surplus however, is imposed up to 70% (income tax).
Tax deductions
The cantons define the amount of deductible annual contributions. In some cantons, a Pillar 3b is not deductible at all, whereas in the canton of Geneva in 2025, it will be possible to deduct up to:
- CHF 2,232 for a single person
- CHF 3,348 for a married couple
In the canton of Fribourg, the following deductions are available:
- CHF 750 for a single person
- CHF 1,500 for a married couple
How is Pillar 3b capital taxed?
Pillar 3b capital is subject to thewealth tax for the duration of the contract. Assets are taxed above a certain amount and depends on canton. In Geneva, wealth tax is due from CHF 87,632while his debut at CHF 58'000 in the canton of Vaud.
3rd pillar B: for whom?
The 3rd Pillar B can be adapted to the following profiles:
- People who have contributed the legal maximum to Pillar 3a
- Those seeking total flexibility on amounts, supports and withdrawals
- Anyone wishing to save beyond retirement
- Persons with no income subject to AHV
Where can I take out a Pillar 3b?
You can conclude a 3b with insurance than with a financial institution. The decision will depend on your needs (protection of loved ones, retirement provision, return on investment, etc.).
What solutions exist?
Several models are available, depending on your objectives. You'll find single-premium life annuitiesThese are ideal if you want to secure a supplementary pension without worrying about the markets. On the other hand regular premiums offer you the flexibility of spreading your payments over several years, while gradually building up your capital.
For those aiming for more growth dynamicssolutions for financial markets (investment funds, dedicated securities accounts or units of account) enable you to expose your savings to equities, bonds or ETFs, with the potential for higher returns - but also the risk of capital fluctuation. Finally, life insurance products multisupport combine protection (capital guarantee) and investment (variable-return funds), offering a compromise between security and performance. Your choice will depend on your time horizon, risk tolerance and liquidity requirements.
Frequently asked questions
Each spouse is free to take out one or more Pillar 3b policies; there is no regulatory limit per person or per household.
Yes - capital and gains must be reported on your French tax return if they generate taxable income or are included in the IFI calculation, but they are not deductible.
Yes, up to CHF 2,232 for a single person and CHF 3,348 for a married couple.
If the contract allows, you can withdraw your funds at any time without restriction or penalty.
Pillar 3a is capped, tax-deductible in Switzerland, and withdrawals are subject to strict conditions.
Pillar 3b has no automatic ceiling or tax benefits, and withdrawals and payments are completely free. What's more, there's a wider choice of investments.
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