published22. April 2022, 04:41
Seven out of ten Swiss employees save with pillar 3a. That is almost ten percent more than four years ago. Among 20 to 29 year olds it is even twelve percent more.
More than 60 percent of 20 to 29 year olds pay into Pillar 3a. In 2018 it was only regarding 48 percent.
20min / Stevan Bukvic
“Awareness of old-age provision has increased significantly among the younger generation,” explains Comparis pensions expert Leo Hug.
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The Swiss are increasingly worried regarding their retirement provisions.
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More than 60 percent of 20 to 29-year-olds now pay into Pillar 3a.
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In 2018 it was only regarding 48 percent.
Provision for old age is in vogue: 69.8 percent of employed Swiss people pay into pillar 3a. In 2018 it was only 63.1 percent. That is an increase of almost ten percent, as a current survey by the comparison platform Comparis shows.
Interest in old-age provision has risen particularly sharply among 20 to 29-year-olds. Today, more than 60 percent pay into pillar 3a (see box). Four years ago it was only regarding 48 percent. “Awareness of old-age provision has increased significantly among the younger generation,” says Comparis pensions expert Leo Hug.
Pillar 3a offers another option (in addition to the pension fund and AHV) to save for private old-age provision. From the age of 18, money can be transferred annually to a 3a account; this up to a maximum of five years following normal retirement age (if you continue to work). A maximum amount (this year CHF 6,883) can be transferred to the 3rd pillar account each year. This amount can then be deducted from taxable income. In addition, the money saved can also be used before retirement for owner-occupied residential property, the purchase or coverage of a mortgage – but also for renovation work (here, however, the maximum withdrawals are limited).
Many Swiss people have increasingly realized that they will not be able to make ends meet in old age with the AHV and pension fund. That is why more and more people are opting for additional voluntary pension options.
“The mentality has changed, people are thinking more regarding the future,” says Hug. Many younger people also harbored great mistrust of the AHV and the pension fund. The reasons for this are the falling conversion rates and the deadlocked political discourse on pension reforms.
Banks instead of insurance companies
When it comes to saving money for old age, there is a clear trend toward bank accounts, including among the younger generation. Almost three quarters of 20 to 29-year-olds have an account with a bank for 3a provision. Just under 40 percent have an insurance policy and some also have an account.
When it comes to pension provision, there is a big difference between women and men. More than three quarters of men use the savings option via pillar 3a. For women it is only regarding 63 percent. But that is significantly more than in 2018. At that time it was just under 56 percent.
There are also regional differences when it comes to old-age provision: 3a savings are most popular in German-speaking Switzerland at 72.7 percent. In French-speaking Switzerland it is only 62.9 percent and in Italian-speaking Switzerland 60.3 percent.
