Pillar 3b
Unrestricted Private Pension (Säule 3b)
Simple Definition
Flexible savings or insurance policies that do NOT offer the same direct tax deductions as Pillar 3a, but have no withdrawal limits.
Why this matters to Expats.
Often sold to expats by aggressive insurance brokers as a "Tax Optimization". Be careful. Unlike 3a, you generally cannot deduct contributions. It is mainly useful for wealth transfer, life insurance, or if you have already maxed out your 3a.
Actionable Intelligence
Lump-Sum Taxation: Payouts from qualified 3b insurance policies can be tax-free if certain conditions are met (e.g. policy held >5 years, paying premiums >5 years).
Geneva/Fribourg: Some cantons DO allow small deductions for 3b. Check your local tax code.
Bank vs Insurance: 3b is almost always an insurance product (Life Insurance).
Frequently Asked Questions
Why not just use a savings account?
3b Insurance offers bankruptcy protection and beneficiary designation (bypassing inheritance law).
Can I withdraw anytime?
Yes, usually (unlike 3a), but you might pay surrender penalties.
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