Account Types for the 3rd Pillar A: Which One to Choose?

In this article we will analyze concerning the different types of account 3rd pillar A: Which one to choose?

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⚠ Investing your 3a can cause money losses!

What is a 3a account?

I have written several articles to detail what a 3a account is. In my page ”investments”.

In broad terms, a 3a account is an individual pension plan via a savings account.

👉 In fact, the 3a account was created to compensate for low income from the AHV and the pension fund (first pillar and second pillar).

The aim of account 3a is to maintain the standard of living from the last salary to retirement age.

On the other hand, account 3a can be used for other projects, such as:

Final departure abroad
Buying a primary residence
Create your business

However, these payments are subject to certain conditions!

Here is a summary of the three Swiss pillars 😉

3rd pillar	Maintain the standard of living of the worker's former occupational salary
2nd pillar	Major expenses
1st pillar	“Vital” expenses

👉 Also, note that paying money into the 3a account allows you to deduct taxes! As a result, contributing to your retirement account allows you to benefit from tax advantages!

However, there is a maximum amount that can be saved in the 3a account each year. The maximum amount is decided by the Federal Council and the Confederation. In 2025, the maximum ceiling is CHF 7,258.

Is a 3a account mandatory or optional?

A 3a account is optional.

On the other hand, it is strongly recommended in order to have adequate income during retirement.

3 types of 3a account

If you understand the importance of making a 3rd pillar A, you will need to open an account. In reality, you have 3 possibilities!

👉 Note that the 3 types of 3a accounts have exactly the same tax deductions compared to the amounts you add each year. So, which one should you choose?

Insurance
Bank
Provident fund

With insurance?

➡ Which I strongly advise against, 3rd pillar A accounts with insurance have 2 negative aspects.

1 – The insurance includes life insurance which will deduct your first contributions.

As a result, your money will be blocked and will only be distributed to you in the event of death or disability.

2 – Insurance requires you to pay minimum amounts per month.

In reality, no one guarantees that you will have the financial means to pay a minimum monthly amount for many years.

With a Bank?

With a bank, a 3rd pillar A account is freer than insurance.

👉 Unlike insurance. With banks, there is no minimum amount to add.

Therefore, in my opinion, I prefer the freedom of a 3a bank to the obligations of 3a insurance.

With a contingency fund?

In the mid-2010s, startups specializing in pension fund management appeared with very interesting products for the 3a account financial market.

👉 Their goal is very simple. It is to offer customers better 3a accounts than banks and insurance companies.

Indeed, these new pension funds have allowed customers to save and invest their 3a account with low commissions. In a 100% passive way. Which allows for interesting investments and returns!

I wrote an article to explain '‘'‘how to choose the best 3a account”. And in reality, 3a pension funds are (at the time of writing), in my opinion, the best accounts to invest your 3a account in.

Viac as a contingency fund?

👉 For example, as I write these lines. I prefer Viac! 😊

I wrote an article about all of Viac's services, available here.

👉In broad terms, this is why I suggest a Viac account.

Quick, easy registration from your smartphone.

Free amounts – You choose when and how much you want to add to your 3a Viac. The only limit is that imposed by the Swiss government.

Guarantee of the first 100,000 CHF, even in the event of bankruptcy.

Ability to choose your strategy quickly and freely.

Once the strategy is defined, the customer no longer has to worry about anything! Viac is responsible for investing the money according to the client's strategy.

If you invest your 3a in the stock market. Commissions will be a maximum of 0.41% for a global strategy.

Customer service is very good.

Conclusion

👉 Here is a table to summarize the essential differences of each type of 3a account. According to my knowledge.

account 3a (third pillar)	Insurance	Bank	Pension fund 3a
Free amounts?	No	Yes	Yes
Opportunity to invest	Yes	Yes	Yes
Death or disability insurance included 3a?	Yes (but paying)	No	Yes (some free)
3a stock market commissions	Dear	Dear	Cheap

▶ To conclude, a 3a pension fund is, in my opinion, the best option!

Indeed, I only use Viac as a 3a account and I am very satisfied 😉

If you want more information on Viac, read my article dedicated to Viac 😉

And you, what type of 3a account are you thinking of opening?

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Compared to before, I was a person who consumed a lot until the day I realized that my consumption made me sadder and poorer 😑

Now I prefer the minimum of my needs to be happy and achieve my financial freedom.

Without realizingI started to focus on saving and investing to depend on a boss for as little time as possible and to speed up my personal projects.

For several years I have felt happy and I have become richer in a way that I would never have imagined given that I have an average salary in Switzerland.

It is for this purpose that I decided to create this blog. In order to share and learn with other people who seek freedom and simplicity 😉

Are you rather minimalist or frugal Jonny?

I am as minimalist as I am frugalist. However, there are situations where I lean more towards an art of life.

To conclude, I think the most important thing is to feel comfortable in your lifestyle 😊

Types of account for the 3rd pillar A annexes

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1 -https://viac.ch/fr/pilier-3a/frais/

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Account types for the 3rd pillar A: Which one to choose?