Get more out of Savings 3

For many employees, putting money into Pillar 3a, reducing tax bills and providing for old age are key considerations as the year-end approaches. But by leaving all their pension assets in one account for many years, they could be missing out on potential capital market returns.

Pillar 3a in particular offers good opportunities for long-term investment. The period before you plan to withdraw your pension assets – for retirement or to purchase a home of your own, for example – is crucial: With a broadly diversified securities solution, this period can be used to target long-term asset growth.

“With a long investment horizon, it’s worth taking advantage of capital market opportunities. By starting early, you’ll give your pension assets more time to grow.”

Andrea Teufer, Private Clients Advisor, Zuger Kantonalbank

From saving to investing

With a Savings 3 account, your pension assets earn interest. By investing your 3a money in securities, you also get access to potential capital market returns.

Pension funds invest in a broad range of investment classes, including equities, bonds, and real estate – depending on the fund and the strategy. This diversification reduces cluster risk but doesn’t eliminate general market risk.

The long investment horizon is especially valuable. The period before you plan to withdraw your pension assets – for retirement or to purchase a home of your own, for example – is crucial: Short-term market volatility is natural, so a long investment horizon gives you more time to even out short-term price losses and benefit from the long-term growth of capital markets.

With Pillar 3a, therefore, it’s not just about how much you pay in; how your pension money is invested is just as important.

Think ahead. Start today.

Time and regularity matter when saving with securities. By starting early and investing continuously, your investments are spread throughout different market phases – thus giving your capital more time to generate income.

You can also make additional gains if the income generated is reinvested. The impact of this over a number of years can make an important contribution to the growth of your pension assets.

There’s no single investment strategy for everyone. Your investment horizon, risk capacity and risk appetite determine what proportion of securities suits your personal circumstances. A professional investment strategy combines these factors with broad diversification and a long-term perspective.

Five mistakes when it comes to Pillar 3a

“Pillar 3a is only worth it with the maximum amount.”

Even smaller sums help grow your pension assets and can be deducted from taxable income. What’s crucial is to start today and pay in regularly.

“My money is in a 3a account. So everything’s been taken care of.”

If you still have plenty of years until the planned withdrawal of your pension assets, you can take advantage of this investment horizon in a targeted way. Securities offer additional potential returns and enable you to benefit from growth in capital markets.

“Saving with securities is just for stock-market professionals.”

Professionally structured pension solutions invest on a broadly diversified basis and pursue a defined investment strategy. What matters is choosing a strategy that suits your personal circumstances rather than predicting individual stock-market winners.

“I’m waiting for the perfect entry point.”

No-one knows in advance what the perfect entry point will be. By investing regularly, the investments are spread across different market phases. With a long investment horizon, the individual entry point becomes less significant.

“I’ll worry about my Pillar 3a later.”

Time is valuable when investing for the long term. By starting early, you’ll give your pension assets a greater opportunity to grow.

Activate Pillar 3a now!

2026 contributions: Employees with a pension fund can pay in up to CHF 7,258 in 2026 and deduct this from taxable income. Those without a pension fund can invest up to 20% of their earned income, up to a maximum of CHF 36,288.

Investing pension capital: With a long investment horizon, you can use securities to get more out of your 3a assets. Investing regularly: With a standing order, your contributions are made automatically. In combination with a regular investment mandate, the investments are also spread across different market phases.

Choosing a suitable strategy: Your investment horizon, risk capacity and risk appetite determine what proportion of securities suits your personal circumstances.

Setting up multiple 3a accounts: Having multiple 3a accounts enables you to withdraw in different tax years. This can provide tax advantages, depending on your place of residence and other pension capital withdrawals.

Start early, in 2027: By paying in and investing from January, you can use the entire year for long-term asset growth.

What’s the right investment strategy?

A good investment strategy is geared to the long term and takes into account personal risk capacity, risk appetite and investment horizon. These factors are key to deciding a suitable securities solution for Pillar 3a with Zuger Kantonalbank.

Getting more out of Pillar 3a

Pillar 3a combines tax advantages with long-term asset growth. By starting early, paying in regularly and taking advantage of capital market opportunities, you’ll give your retirement assets more opportunities to grow long-term.