What is it?

The free part of your pension planning

Pillar 3b includes savings, investments and life insurance that complement the mandatory pillars and 3a.

Mandatory?

No, and without a federal limit

You choose the amounts, duration, beneficiaries and timing of use depending on the chosen product.

Key point

3b is not a lesser 3a

It serves other goals: freedom, transmission, cohabitation, pre-retirement projects and family protection.

Simple pillar 3b diagram

More flexible outside the federal cap, useful for freer goals.

  1. By goal Vehicles Savings, life insurance, investments
  2. Strength Flexibility Goals beyond strict retirement
  3. Base Need outside 3a Liquidity or unlocked project

Less federal tax advantage, more withdrawal freedom.

What is pillar 3b?

Le pilier 3b est la prévoyance libre. Contrairement au pilier 3a, il n’est pas limité par un plafond fédéral annuel et n’impose pas les mêmes conditions strictes de retrait. Il peut prendre la forme d’une assurance vie, d’une épargne, de placements, de titres ou d’autres éléments patrimoniaux.

Its main value is not immediate tax deduction, but flexibility: choosing the amount, duration, beneficiaries, withdrawal timing and protection level according to your project.

Criterion
Pillar 3a
Pillar 3b
TaxationDeduction
Contributions deductible within legal limits.
No standard federal deduction; cantonal exceptions may apply for certain life insurance policies.
AvailabilityWithdrawal
Withdrawal limited to cases provided by law.
Availability according to the contract, often more flexible.
BeneficiariesTransmission
More regulated legal order, even though adjustments exist depending on the applicable rules.
Freer designation, useful for a cohabiting partner, blended family or third party.

When 3b becomes useful

3a optimised + Flexible project + Protection for a loved one = 3b to review

3b makes sense when you need freedom: accessible capital, tailored beneficiaries, savings beyond the 3a limit or death protection linked to a specific family situation.

Taxation: what to understand

Pillar 3b does not offer the direct federal tax advantage of 3a. In most cantons, contributions are not deductible. Some cantonal exceptions exist, particularly for life insurance in Geneva and Fribourg, under precise conditions.

During a 3b insurance contract, the surrender value generally has to be declared as wealth. On payout, the capital may be exempt from income tax if pension conditions are met, for example minimum duration, conclusion before a certain age and payout after age 60. Exact rules depend on the product, canton and personal situation.

3b life insurance: protection and transmission

Une assurance vie 3b peut verser un capital en cas de décès, garantir une épargne à l’échéance ou investir une partie des primes dans des fonds. Elle peut aussi intégrer une couverture incapacité de gain ou une libération des primes selon le contrat.

Free designation of beneficiaries is an important advantage, but it must be coordinated with inheritance law, forced heirship shares and family situation. It is particularly useful for a cohabiting partner, blended family, self-employed person or targeted transmission.

Common pitfalls

3b gives freedom, but that freedom must be structured.

Confusing taxation and real valueWithout a federal deduction, the product must be justified by your objective.
Surrendering too earlyA life insurance policy surrendered quickly can generate a loss.
Beneficiaries not updatedMarriage, divorce, birth or change of partner should trigger a review.
Forgetting 3aIn many cases, 3a should be optimised before adding a 3b.

I already have life insurance or a 3b: should it be adapted?

Check surrender value, fees, guarantees, beneficiaries, cantonal taxation and real liquidity. A free investment can sometimes better suit a short or medium-term project than an insurance policy.

With Finwise

We validate whether 3b brings real value

We compare free investments, life insurance and mixed solutions according to your taxation, family, projects, beneficiaries and protection needs. 3b should complement 3a, not weigh it down.

Finwise Assurances partner logos

Review my pillar 3b Compare with pillar 3a See life insurance

Let’s talk about your needs

Tell us about your situation in a few lines. A Finwise adviser will contact you to clarify your options and compare suitable solutions.