Pillar 3a disadvantages

Hello,

What are the disadvantages of keeping money in the Swiss third pillar of retirement savings. Are there any?

Hi there,

The biggest possible disadvantage of saving money using the third pillar is that assets placed in pillar 3a accounts or policies cannot be accessed until you reach a certain age (59 for women, 60 for men).

If a fantastic investment opportunity or a major financial need arises in the meantime, there is no way that you can access money in a 3a savings account or another 3a solution (with a few exceptions which you can find listed here).

A regular savings account provides far more flexibility - albeit without the tax benefits which come with the third pillar.

However, this is also an advantage because you have the guarantee that those assets will be there when you near retirement age.

Best regards from Moneyguru

More on this topic:
Interactive 3a retirement account comparison
Interactive Swiss savings account comparison