What are the advantages of pillar 3a?

The advantages of pillar 3a are of a tax nature. The state wants to encourage voluntary saving for retirement with a financial incentive. Specifically, payments into pillar 3a can be deducted from taxable income and thus reduce the income tax burden. In addition, there is no wealth tax or income tax on earnings within Pillar 3a. Only when the saved capital is withdrawn is there a privileged capital withdrawal tax, which is lower than the normal income tax.