Individual Pension (3rd Pillar A)
Our Pictet Individual Pension Foundation (3rdPillar A) enables you to build up their own additional personal capital as pension provision and benefit from tax allowances and relief applicable to tied personal pension accounts (3rd Pillar A).
3rd Pillar A
Assets managed by our Foundation are in safe hands. These tied personal pension accounts are held at Banque Pictet & Cie SA, with the responsibility for managing asset portfolios being entrusted to Pictet Asset Management SA. Both these companies are part of the Pictet Group which enjoys a worldwide reputation for its business performance, its integrity and the quality of its services.
Our solutions for tied personal pension savings give you the opportunity to choose freely how to invest your occupational pension assets in one or more portfolios.
Your investment strategy can be changed at any time depending on your goals, your personal circumstances and what is happening on financial markets.
Pictet Individual Pension Foundation (3rd Pillar A)
The Pictet Individual Pension Foundation (3rd Pillar) was created on 1 January 1990 and enables individuals to build up their own personal capital as pension provision and to benefit from the tax exemptions applicable to individual pension accounts (3rd Pillar A). Through a rigorous approach to investment and professional management, and by taking advantage of all the investment possibilities allowed under Swiss law, the Foundation's aim is to increase individuals' pension assets. The Foundation allows overall management of all of an individual’s tied retirement savings as well as offering the following advantages:
- lower fees
- greater possibility for diversification (because of larger sums available)
- less overall risk as a result
Tax advantages of a 3rd Pillar A account
Payments into a tied pension account (3rd Pillar A) may be deducted from taxable income, according to the provisions of Art. 7, OPP3. The maximum contributions permitted by law are determined by the Federal Council, and rise regularly in line with inflation.
All the income is exempt from income tax and is not subject to withholding tax, either by the Swiss Confederation or by the cantons, until such time as the capital is withdrawn. Furthermore, no wealth tax is deducted from the capital until the latter is withdrawn.
If assets are withdrawn, or in the event of death, the Confederation and the cantons tax capital payments as income, as a general rule separately from other income, at a special rate or at the pension rate.
In some cantons, however, the lump-sum benefits paid out to certain beneficiaries may be subject to inheritance tax rather than income tax; in some circumstances, they may even be subject to both inheritance tax and income tax.
Maximum deductions for 2022
- Employed and self-employed persons who are member of a pension scheme: CHF 6'883.-
- Employed and self-employed persons who are not member of a pension scheme:20% of income from gainful activity up to a maximum of CHF 34'416.-.
The expertise and services offering are aimed at:
- Anyone taxed in Switzerland whose income derives from gainful employment, whether a salaried employee or self-employed, and who has to pay OASI/DI social security insurance
- Any person wishing to improve the financing of their retirement
- tax payers who would like to take advantage of the tax breaks offered by the Confederation and the cantons
- Anyone already paying into a 3rd Pillar A account or policy, but who has not yet reached the statutory limits
- Pension fund members who already have a tied pension account (3rd Pillar A), and wish to transfer their assets to a different pension account.
