What pillar 3a solutions are available?

There are various options for paying into pillar 3a: Pillar 3a account: The pillar 3a account has the same function as an ordinary savings account. The interest rate is usually slightly higher as the capital is tied up for longer. In contrast to a savings account, the interest and the capital saved are tax-free until they are paid out. It is a pure savings solution and the amount of the deposit can be freely defined each year. In addition, the account can easily be switched to a securities solution and vice versa. The account offers a great deal of flexibility in the choice of provider, implementation solution, payment and withdrawal dates. Pillar 3a securities solution: A securities solution means that the amounts paid in are invested in investment funds. By investing the capital in shares, bonds and property, you can generally expect significantly higher returns than with an account solution. However, investments are always associated with investment risks and losses cannot be ruled out. To minimise the risk of loss, the investment horizon should be around 10 years. The securities solution also offers a great deal of flexibility in the choice of provider, implementation solution, payment and withdrawal dates. Pillar 3a insurance policy: The insurance policy not only allows you to save, but also insures risk benefits. In addition to saving capital, a lump-sum death benefit, a disability pension and a premium waiver in the event of disability can also be insured. For the savings capital, you can choose between a fixed interest rate or a securities solution. The annual premium is divided into a risk premium to cover the insured benefits and a savings premium, which flows into the savings capital. The premium is due annually and the payout date is defined with a fixed expiry date. The insurance solution is significantly less flexible but offers the possibility of protecting yourself and your family in the event of a risk. Which solution is the best depends on your personal situation, needs and preferences.