How exactly does True Wealth's auto top-up system work?

If you activate Pillar 3a in your account, the annual contributions you pay into Pillar 3a are automatically distributed over up to 5 accounts. In the first year you start with one account, in the second year a second one is added, until the fifth year – always assuming you make annual deposits. In the sixth year, the deposits go into one of the existing accounts, namely the one with the lowest account balance. This logic is also applied in each subsequent year. This ensures that the five accounts are filled as evenly as possible.

Transfers from external 3a providers to True Wealth are handled differently. A separate account is created for each external transfer (multiple external transfers are never mixed) and these accounts are excluded from future deposits.

What happens when I withdraw? If you have paid into 3a with True Wealth for at least 5 years and have also made, say, 2 external transfers, you will have seven 3a accounts with True Wealth. When you withdraw, you can decide for yourself which of the accounts you want to pay out. Due to the splitting, you are flexible and can greatly reduce the progression of the capital payment tax.

More questions in "Pillar 3a"

How is True Wealth regulated and where are my pension assets held?Does True Wealth also use fractional shares?For what reasons can Pillar 3a be paid out early?Can I also transfer my 3a accounts from other providers to True Wealth?Where can I view the regulations of the 3a Digital Pension Foundation?What are the advantages of holistic asset management and why is only one investment strategy possible?Does True Wealth plan to also use withholding tax-exempt index funds in Pillar 3a?I am self-employed and can pay more than CHF 6'883 into my Pillar 3a. Is this possible with True Wealth?What is the maximum amount I can pay into my 3rd pillar?When can I liquidate my Pillar 3a?How large are the FX spreads on Pillar 3a from True Wealth?How is the Pillar 3a payout taxed?How can True Wealth offer an interest rate of 1%?Where can I find the tax return documents?How can I withdraw my Pillar 3a?What is Pillar 3b?How much money should be in each Pillar 3a account?Is there a minimum investment amount?Do currency-hedged investment instruments incur additional costs?How long does it take to open my Pillar 3a with True Wealth?By when do you have to withdraw the Pillar 3a?What happens to Pillar 3a in the event of death?Which is better for Pillar 3a, ETFs or index funds?What is Pillar 3a?Why are past returns not an indicator of future returns?Is there a minimum contract term with True Wealth?Is True Wealth planning to increase fees in the future?Does True Wealth engage in securities lending in Pillar 3a?Why should you choose True Wealth's Pillar 3a?Is there also a Pillar 3a app?How much does True Wealth's Pillar 3a cost?The cost regulations of the pension foundation mention an administrative fee. Why does the website say that the offer is free of charge?Is my money safe and does the deposit guarantee also apply to my Pillar 3a assets?Where is the registered office of the Pension Foundation 3a Digital and how is it supervised?Can I have my Pillar 3a transferred from True Wealth to another provider?Why are currency-hedged ETFs or index funds used in some cases?What is pooling and netting and how does it benefit me as a client?How often does the rebalancing of the Pillar 3a account take place?I already use True Wealth's Pillar 3a and have paid in the maximum annual contribution. Now I want to transfer an additional amount from another provider to True Wealth. How does this affect the staggering of the accounts?Why is True Wealth able to offer a securities-based Pillar 3a free of charge, while other market participants charge for it?Can I hold the same number of shares and the same amount of foreign currency in my Pillar 3a as in my free assets?
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