Amortisation / Life insurance

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Linked 3rd pillar A

An employee subject to the occupational pension plan (LPP) can sign up for the linked 3rd pillar A up to CHF 6,826 /year from 1 January 2019 . For workers and the self-employed without LPP, it is 20% of net profit from activities up to a maximum of CHF 34,128 /year starting in 2019 .

3rd pillar contributions can be paid until the age of 69 for women and 70 for men.

Benefits can only be paid 5 years before the insured's age of retirement as defined by the Old Age and Survivors' Insurance Fund (AVS), meaning up to age 59 for women and 60 for men. At the latest, benefits are due when the subscriber reaches the age of 69 for women and 70 for men.

Old age benefits can be paid in advance, prior to the 5-year limit, when they relate to the retirement planning under the following conditions:

  • Establishment or change in personal business
  • Permanent departure from Switzerland
  • Disability with a full pension
  • Transfer of benefits to an occupational pension fund (LPP)
  • Financing of personal equity for a primary residence
  • Financing work on a primary residence
  • Total or partial loan amortisation for a primary residence

In matters relating to home financing, spousal consent is required.

When the policy expires, 3rd pillar survival benefits are paid out to the policyholder, who should also be the insured person. In the event of death, the beneficiaries are the surviving spouse and, failing him or her, the children as well as other persons for whom the deceased has provided in a substantial way or who have lived with the deceased uninterruptedly for at least 5 years immediately preceding the death as well as those who must provide for one or more common children. Then come the parents, siblings and other heirs.

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