Pillar 3a Asset Management: A Guide to Online Retirement Saving Solutions

Mobile phones have taken over many areas of our life, and retirement planning is no exception. But how do online retirement saving solutions work? How secure are they? And how can I find the offer that suits my needs?

In this guide, independent online comparison service moneyland.ch answers the most important questions about using online pillar 3a asset management services to save and invest for retirement.

This article focuses on pillar 3a investment solutions from asset management services. These solutions let you invest your retirement savings in stocks and certain other assets. The information in this article does not cover solutions for vested pension fund benefits. However, online asset management solutions for vested benefits are included in the PDF comparison available at the foot of this page.

1. What is an online pillar 3a asset management service?

An online pillar 3a asset management service enables you to invest your pillar 3a savings in a whole portfolio of different assets. Many of these services use a mobile app to interact with you as the customer, but some also have web portals. Some solutions from banks are accessed through the bank’s online and mobile banking portals.

Pillar 3a asset management services are primarily designed for people who want to invest their retirement savings in stocks and other assets like bonds, real estate, commodities, and precious metals. In addition to investing, some of these services also offer pillar 3a savings accounts just like those offered by established banks. The PDF comparison available at the foot of this page shows you which service providers offer pillar 3a savings accounts. 

2. How do pillar 3a asset management solutions work?

Using an online pillar 3a asset management service generally works like this: You as the customer must answer a series of questions. Based on the answers you select, the app or other portal then recommends an investment portfolio. Once your portfolio is set up, you are shown all the necessary information and can begin transferring money to your account immediately. The management of your portfolio is typically all done within the app or web portal.  

3. Which features are included in online pillar 3a solutions?

The exact features vary between service providers, apps, and portals. The following features are normally included in online pillar 3a asset management solutions:

• You can choose your investment strategy when you sign up.
• You can change your investment strategy on an ongoing basis.
• You can manage your pillar 3a assets directly within the app or portal.
• You can download tax statements as PDF files.
• You can track the development of your pillar 3a investments.

4. Which online pillar 3a asset management services are available?

These Swiss asset management services for pillar 3a assets let you sign up and manage your portfolio using a dedicated mobile app. 

• Descartes
• Eplix (Tellco)
• Finpension
• Frankly (Zürcher Kantonalbank)
• Gioia 3a (Graubündner Kantonalbank)
• Inyova
• Liberty Green
• My Liberty
• Pilla (Crédit Agricole Next Bank)
• Selma Finance
• True Wealth
• Viac
• Yuh
• Volt (Vontobel)

These Swiss neobanks offer pillar 3a asset management solutions as part of their mobile banking services:

• Alpian
• Neon
• Yuh

Some conventional banks offers their customers online pillar 3a solutions as part of their online and mobile banking services. You can sign up for and manage the pillar 3a service directly within the online banking portal. Examples include:

• Denk 3a (St. Galler Kantonalbank)
• Fluks 3a (Luzerner Kantonalbank)

Viac, the first purely online pillar 3a asset management service, is now the market leader for this kind of product, with more than five billion francs of assets under management. Frankly, the online pillar 3a solution from the Zürcher Kantonalbank, holds second place with four billion francs. You can get a PDF comparison with additional information about each product using the form at the foot of this article.

5. Do online pillar 3a asset management solutions offer personal consultation?

Most of these service providers do not offer face-to-face consultation in person. But many of them do let you ask questions via a chatline or over the phone.

6. How much do I have to invest?

Most service providers either do not have minimum deposit requirements, or only require a relatively small initial deposit. Some have higher requirements. Selma and Volt, for example, require a minimum deposit of 500 francs. Alpian, and True Wealth have a 1000-franc initial deposit requirement. The requirements for all service providers are shown in the PDF comparison available at the foot of this guide.

For new payments you make into the pillar 3a, the total amount you can add each year cannot exceed the annual pillar 3a contribution limit. The limit does not apply to existing pillar 3a savings. These can be transferred from one pillar 3a solution to another in full. You have the right to transfer your pillar 3a savings to a different pillar 3a solution at any time. Make sure to pay attention to possible notice periods.

7. How much do online pillar 3a asset management services cost?

The table below shows the asset management fees, the fund fees (TER), the total costs, and the results of a moneyland.ch cost simulation.

Pillar 3a asset management solutions are primarily useful if you want to invest your retirement savings in stocks or other assets over a long term. For customers looking for a long-term investment solution, online pillar 3a asset management services are often much cheaper than conventional pillar 3a retirement funds.

8. Which investment portfolio should I use?

Online pillar 3a asset management solutions normally offer several different portfolios, each with a different stock component.

The rule of thumb: If you will leave your savings invested for at least 10 years, you can invest all your money in stocks. In other words, you can choose the portfolio that has the largest stock component. Over a term of 10 years or more, any temporary losses in value will – in all likelihood – be recovered.

Bei einem Anlagehorizont von weniger als zehn Jahren steigt das Verlustrisiko bei einem reinen Aktienportfolio entsprechend. Eine reine Aktienstrategie sollten Sie auch dann nicht wählen, wenn Sie wegen Kursschwankungen nicht mehr ruhig schlafen können.

But that is not the case for terms of less than 10 years. The rule of thumb in this case is: The shorter the investment term, the higher the risk of losing money with stock investments.

Using a portfolio with a large stock component is also not advisable if you have a hard time dealing with fluctuations, and prefer that the value of your pillar 3a savings remains as stable as possible.

9. How secure are online-only pillar 3a solutions?

In short, digital pillar 3a solutions are considered to be secure.

The securities you invest in using pillar 3a asset management services are held at Swiss custodian banks. Regardless of whether or not the asset management service provider is a bank, your assets are always held at a licensed Swiss bank.

In Switzerland, securities in your name are segregated, so they are not liquidated with the custodian bank’s assets in the event of a bank failure. You remain the owner of the securities, and can transfer them to a different custodian bank.

The PDF comparison shows the custodian banks used by different pillar 3a asset management service providers.

Retirement savings kept in pillar 3a savings accounts is protected by the Swiss bank depositor protection scheme, up to a maximum of 100,000 francs per customer and bank. You can find more information in the guide to the Swiss bank depositor protection system.

10. What do online pillar 3a asset management services invest in?

Some online pillar 3a asset management solutions invest your money in a mutual fund. But most invest your money in a whole portfolio of different investment vehicles – typically low-cost exchange-traded funds (ETFs) and index funds. Some service providers also use actively managed mutual funds for their portfolios, or combine actively managed and passively managed funds.

Online pillar 3a solutions may invest in many different asset classes. Depending on the service provider and portfolio, these may include stocks, bonds, real estate, commodities, precious metals, alternative investments, and currencies.

Many service providers also let you invest in sustainable investments. These investments are typically based on ESG criteria, with the exact criteria varying between investment solution providers. Some service providers use the more comprehensive SDG criteria for sustainable investing.

11. Are pillar 3a asset management solutions the right fit for me?

If you are not comfortable with using mobile apps and web portals, then online pillar 3a solutions are not a good fit. But it is worth noting that the digital interfaces are typically very user-friendly.

Using an asset management service for your pillar 3a is also not advisable if there is a chance that you will withdraw your money in five years or less. In this case, you should use a pillar 3a savings account instead (or a vested benefits account for pension fund benefits).

More on this topic:
Compare pillar 3a savings accounts now
Compare pillar 3a retirement funds now
The costs of retirement funds explained
The Swiss three-pillar pension system explained