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.