Pillar 3a

Pillar 3a is a tied, tax-privileged private pension plan. It is available to all employed persons aged 18 and over with income subject to AHV contributions. Annual contributions can be deducted from taxable income. The pension capital itself is tax-free and therefore not subject to wealth tax.

When the retirement assets are withdrawn, a capital gains tax is payable. Taxation is independent of ordinary income. Municipalities, cantons, and the federal government apply a preferential tax rate. At the federal level, the rate corresponds to one-fifth of the ordinary income tax.

Pillar 3a is fee-free at True Wealth. You can find more information here:

Pillar 3a with ETFs and index funds. 0.0% management fee.