What is pillar 3a?

The Swiss pension system consists of three pillars. The first pillar is the state pension scheme (AHV/IV/EL), the second pillar is the occupational pension scheme (BVG/pension fund) and the third pillar is the private pension scheme. In contrast to the 1st and 2nd pillars, the 3rd pillar is voluntary. Within the third pillar, a distinction is made between restricted pension provision (3a) and unrestricted pension provision (3b). Payments into the tied pillar 3a are savings that are intended for retirement and are therefore tied up or blocked until retirement. Only in exceptional cases can these savings be drawn on early. For example, for the purchase of owner-occupied residential property, the repayment of a mortgage, for taking up self-employment, in the event of emigration or disability.