
Pillar 3a: Those who don't switch are giving away a fortune
A switch to more securities and lower fees: changing your Pillar 3a takes just a few minutes – and pays off for the rest of your life.
Ideally, you should invest your third pillar assets where they will grow the most. With securities, you can expect a higher long-term return than with an interest-bearing account – not least in the current low interest rate environment. However, when investing in securities, make sure that the provider's fees do not eat up a large part of the additional return.
For an investment with such a long-term horizon as retirement provision, there is therefore no question about it: investing in securities should be your strategy of choice. We explain what is important.
Saving taxes: that's just the beginning
You can deduct payments into Pillar 3a from your taxable income. In addition, assets and income within Pillar 3a are not taxed during the term. Even if you only pay into Pillar 3a for tax reasons, this is an important step towards increasing your assets. But are your assets growing as much as you deserve?
Optimal investment: securities in Pillar 3a
If you opt for a strategy involving investments in securities, you can expect higher returns in the long term. However, this also involves a higher level of risk. Since the investment horizon for retirement provision is usually very long, fluctuations should not play too big a role.
Save on fees: with the right provider
Higher returns with securities – providers charge for this advantage. They usually charge fees for investing in securities. A 3a retirement account, on the other hand, is usually free of charge. These fees reduce your returns and have a significant impact on your investment success. That is why it is important to thoroughly check the provider. Only invest in securities where the fees are low.
«A 0.0% management fee on a 3a securities portfolio is only available at True Wealth.»
To get the best terms for your securities investment, you should compare the management fees, custody fees, external product costs (TER), transaction costs, and foreign currency surcharges. It is also important to know whether index funds exempt from withholding tax are used as instruments in pension provision.
At True Wealth, low fees have been at the heart of our offering since the company was founded over ten years ago. We are independent in our selection of investment instruments and choose ETFs and index funds with the lowest costs. We manage assets in an index-oriented and passive manner out of conviction, because: back and forth empties your pockets.
The best part is that we do not charge any fees for Pillar 3a. Our management fee is 0.0%. The average external product costs are a minimal 0.13 percent.
«This makes True Wealth seven times cheaper than an average pension fund, as determined by the online comparison service Moneyland.»
Untapped potential: the majority are missing out on opportunities
Although switching from an interest-bearing account to an investment solution offers many advantages, according to the latest study «How much capital is in Pillar 3a?» by the Federal Social Insurance Office, only 24 percent of pension assets invested with banks are invested in securities. The other 76 percent are missing out on this opportunity. This does not include funds that are tied up in a combination of life insurance and Pillar 3a. However, the market share of unit-linked life insurance policies in the overall 3a market is steadily declining, as documented by the FSIO. This is hardly surprising, as experts repeatedly advise against them.
Most people in Switzerland are reluctant not only to change their investment strategy, but also to switch providers. Exact figures on the switching of 3a accounts are not available. However, the figures for bank accounts show how unwilling customers are to switch. Yet opening a new 3a account via an app, as is possible with True Wealth, for example, is very easy.
Opening an account via the 3a app: it only takes a few minutes
The True Wealth app is available free of charge in the App Store and Google Play Store. Registration is completely digital and takes less than 10 minutes. No paperwork, no video call. All you need is a smartphone and an ID document. And if you want, you can try out the solution without real money first.
Transferring 3a: more convenient than you think
If you have been paying too much for an investment fund at your local bank or have not invested in securities at all due to high costs, then you should know that transferring Pillar 3a is easy and convenient – and can be done in just a few minutes. The change is:
- Easier than changing health insurance providers. There are no deadlines for termination, so you can't miss any deadlines. In short, you can switch to another provider at any time – and you can do so with a simple, informal letter.
- Easier than switching payment providers. If you switch checking accounts, you have to inform your employer, set up new direct debits, and change your e-bill procedures. None of this is necessary with the third pillar.
As you can see, switching Pillar 3a is the easiest bank switch there is.
We make cancellation easy
By switching, you can take advantage of opportunities that many people pass up: you benefit from lower investment costs, more attractive return opportunities, and an even stronger compound interest effect.
True Wealth offers you an investment strategy for Pillar 3a with securities and extremely low overall costs for asset investment. Our algorithm also tailors an individual investment strategy for you, in which the proportion of stocks, bonds, and other asset classes is optimally diversified and precisely matched to your individual risk tolerance.
We make the switch as easy as possible. No matter which provider you want to switch from, we have everything ready for the termination and transfer. After opening your account, select «Transfer from external 3a» and all the necessary documents will automatically be available as PDF files.
It's that simple: your assets now have room to grow. You don't have to worry about anything except making the right decision. Because we believe that the first steps with True Wealth should be just as convenient and effective as the subsequent wealth management.
About the author

Founder and CEO of True Wealth. After graduating from the Swiss Federal Institute of Technology (ETH) as a physicist, Felix first spent several years in Swiss industry and then four years with a major reinsurance company in portfolio management and risk modeling.

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