Pillar 3a: Bank, insurance or app?
January 5, 2026
4 min read
Pillar 3a: Bank, Insurance or App? The Honest Comparison
The tax benefits are identical across all 3a options. The only difference you can control: what happens to your money in between. The difference over 35 years: CHF 355,000.
CHF 7,258
Maximum contribution 2026 (employees with pension fund)
CHF 355,000
Difference over 35 years: savings account vs. investment solution (5% after costs)
New 2026
Retroactive buy-ins for missed years from 2025 now possible
Contents
01The three options at a glance
| Criterion | 🏦 Savings account | 🛡️ Insurance | 📱 Investment app |
|---|---|---|---|
| Contributions | Voluntary, flexible | Fixed, contractually obligated | Voluntary, flexible |
| Return | ~0.5–1.5% | ~1–3% (after costs) | ~4–7% (long-term) |
| Costs | None/minimal | High (risk premium + admin) | 0.4–1.0% p.a. |
| Risk protection | None | Death + disability | None (solvable separately) |
| Early termination | No issue | High losses (surrender value) | No issue |
| Provider switch | Easy | Expensive / nearly impossible | Easy |
02Option 1: The 3a savings account
The classic. You open a 3a account, deposit money, earn 0.5–1.5% interest. No risk, no effort. The problem: over 35 years, inflation eats most of it. Final value at 1%: CHF 302,000. With investments at 5%: CHF 655,000.
When it still makes sense
Less than 5 years to retirement. Or if you need the money for a property purchase within 3–5 years.
03Option 2: The 3a insurance policy
Savings combined with life and disability insurance. Sounds sensible — but the costs are enormous and well hidden.
The uncomfortable fact
3a insurance policies are extremely lucrative for the insurer and advisor. Early termination costs 20–40% of contributions. Separate saving and insuring. A cheap risk policy costs a fraction separately — and your capital works unencumbered.
04Option 3: The 3a investment app
Your 3a money is invested in securities — diversified, with a risk profile matching your situation. Contributions voluntary, costs transparent, provider switch anytime.
What really matters
Whether passive or active — the key is that you invest in securities at all (if your horizon is 10+ years), that total costs are transparent, and that you understand what you own.
05The 35-year calculation — corrected mathematics
Age 30, maximum contribution until 65. Total contributed: CHF 254,030.
| Option | Avg return after costs | End capital after 35 years |
|---|---|---|
| 🏦 Savings account | 1% | CHF 302,000 |
| 🛡️ Insurance | 2% | CHF 363,000 |
| 📱 Investment solution | 5% | CHF 655,000 |
FV = PMT × [((1+r)^n − 1)/r], annual contributions CHF 7,258, annual compounding. Illustration.
CHF 355,000 difference — same amount contributed, same tax benefits, same number of years.
06New from 2026: Retroactive 3a buy-ins
Since 1 January 2025, missed 3a contributions can be made up retroactively. First buy-in possible from 2026 — for gaps from 2025 onwards. Up to 10 years retroactively, max. CHF 7,258 per year additionally. Must have AHV-liable income in both years.
The pro move: Staggered withdrawal
Capital withdrawal tax is progressive — more in one year = higher rate. Solution: multiple 3a accounts, withdrawn across different years. From CHF 50,000 per account, open another.
07Which 3a solution fits you?
10+ years to retirement: Investment solution. Less than 5 years: Savings account. Need life insurance? Investment app + separate risk policy. Already have a 3a insurance? Check surrender value — switching often pays off after year 10.
08Frequently asked questions
How much can I contribute to Pillar 3a in 2026?
CHF 7,258 (employees with pension fund). Self-employed without PF: CHF 36,288. New: additional CHF 7,258 retroactive buy-in possible.
How much do I save in taxes with 3a?
At 30% marginal rate: ~CHF 2,177/year. At 35%: ~CHF 2,540. A guaranteed return regardless of markets.
Savings account or investment 3a?
At 10+ years: investment. The difference over 35 years: CHF 355,000 (1% savings vs. 5% investment).
Should I cancel my 3a insurance?
Check the surrender value. Early years: high loss (20–40%). After ~10 years, switching often becomes advantageous.
How does the retroactive 3a buy-in work?
From 2026: make up missed contributions from 2025, up to 10 years back, max. CHF 7,258 additional per year.
How many 3a accounts should I have?
Rule of thumb: one per CHF 50,000. Staggered withdrawal massively reduces progressive capital withdrawal tax.
What does 3a cost at arvy?
0.93% all-in per year. Incl. transactions, FX, tax statement. Investment in ~30 quality companies.
Further reading
The tax benefits are identical. The difference is what happens in between.
CHF 355,000 more over 35 years — same contributions, same tax deduction, same discipline. The only difference: whether your money sits in a savings account or works in quality companies.
Written by Thierry Borgeat, reviewed by Patrick Rissi, CFA and Florian Jauch, CFA. 35-year projection: FV = PMT × [((1+r)^n − 1)/r], annual compounding. Maximum 3a 2026: CHF 7,258 (ESTV). Retroactive buy-in: Federal Act on Occupational Pensions (BVG), amendment effective 1.1.2025. Last updated April 2026.
Disclaimer: Not tax or investment advice. Returns are historical averages, not a guarantee. arvy is a FINMA-supervised asset manager with a CISA licence. Imprint & Legal Information.
