With a fund-linked 3a policy, you invest in funds and ETFs instead of an interest-bearing bank balance. This creates long-term return opportunities, but at the same time you also bear the risk of negative price movements.

Prosperity 3a is moreover not a pure savings solution but an insurance policy. It combines wealth accumulation with risk protection: on signing you choose either death cover or premium waiver in the event of incapacity to work (the latter only with periodic premiums). Both together is also possible. Optionally selectable are annuity payment in the event of incapacity to work, premium guarantee (50 %, 80 % or 100 %), automatic lifecycle management and rebalancing.

Pillar 3a is state-encouraged private pension provision: contributions can be deducted from taxable income. In return, payout and use are regulated by law. Pillar 3b is free private pension provision. It offers more flexibility on contributions, term and payout, but its contributions are not tax-deductible. Because of these structural differences, the two pillars complement each other well. The differences are set out row by row in the comparison table further up.

Within a fund-linked policy, under current Swiss tax law no ongoing income tax is generally levied on the investment income. Switching between funds usually does not trigger income tax. Only the surrender value of a Pillar 3b policy is subject to annual wealth tax. Pillar 3a assets are exempt from wealth tax until they are paid out. Payouts from free pension provision (Pillar 3b) are exempt from income tax provided the statutory conditions are met.

Maximum Pillar 3a deductions (2026) (linked to BVG threshold values, subject to official adjustment):

• Employed persons with a pension fund: CHF 7,258
• Employed persons without a pension fund: CHF 36,288 (20 % of net earned income)

The 3a tax calculator shows how much tax a 3a contribution can save. Pillar 3a in particular is governed by BVV 3, Ordinance on Tax Deductibility of Contributions to Recognised Forms of Pension Provision (SR 831.461.3); further federal and cantonal tax provisions also apply.

This section is general information and does not replace tax or legal advice. Amounts and rules can change. The actual tax effects depend on your canton of residence and your individual situation.

Pillar 3a provides for an early withdrawal in certain life situations, e.g.:

• Emigration: On permanently leaving Switzerland, a surrender of the policy is possible. You are obliged to report a change of residence within 30 days. The tax treatment of the withdrawal differs between EU/EFTA and third countries.
• Self-employment: On taking up full-time self-employed activity and discontinuing mandatory occupational provision, a surrender is permitted. The written consent of your spouse or registered partner is required.
• Home ownership purchase: A full advance withdrawal or a partial surrender every five years is possible for owner-occupied residential property. With the privileged advance withdrawal, the cancellation deduction is waived and the loyalty fund is paid out in full. Here too, the written consent of your spouse or registered partner is required. In the case of a partial surrender, the remaining value of the investment assets must amount to at least CHF 500.

You can in principle have your existing 3a balance transferred into a Prosperity 3a policy. A direct transfer from one recognised 3a solution to another does not count as a payout and as a rule triggers no income tax. The transferred legacy amount itself is not a new deductible premium. You do, however, keep the deductibility of the premiums paid in the current year, up to the maximum amount.

Additionally: Premium gaps from previous years (from tax year 2025) can be made up through retrospective buy-ins.

How the switch works: Your intermediary guides the switch and coordinates the next steps with your previous provider. Usually the details of the existing 3a solution and a signed transfer or dissolution declaration are required for this. A switch ideally before year-end secures the tax advantage for the current year.

What you should know for context: When switching to the insurance policy, a risk assessment is carried out which can result in risk surcharges or coverage exclusions. If you choose the Premium Guarantee Select, a minimum insurance term of 20 years (Select 50/80) or 30 years (Select 100) applies.

Costs consist of the fund-linked policy's acquisition and administration fees, the fund costs (TER) of the funds you select, and the costs of the included risk cover and guarantees.

You receive a full cost overview in the conversation with an intermediary. The offer states the costs as a percentage reduction in return. The actual amount depends on the product, its configuration and your situation.

Yes. You choose freely from over 180 funds and ETFs, and within our fund-linked policies you can adjust your investment strategy on an ongoing basis. Fund shift (rebalancing existing amounts) and fund switch (changing the allocation of future contributions) are usually free of charge up to twelve times a year. These changes remain tax-neutral inside the policy.