Pillar 3

Private pension options

Complementing the occupational pension from a pension fund, pillar 3a – tied, private pension provision – allows people to save specifically for their retirement while enjoying attractive tax benefits. As of 2026, it is possible to make top-up payments to fill gaps in previous years, up to the permitted maximum for the year in question.

Pillar 3a offers the following advantages for your pension:

  • Annual payments can be deducted from your taxable income.
  • Free choice of provider: select from banks, insurers or online providers.
  • A range of investment strategies: prioritise security or grasp opportunities.
  • Savings can be used as equity to fund the purchase of a home.
  • You can open more than one pillar 3a account, for example to meet different investment objectives or to stagger your payouts.
  • A long-term investment brings benefits: The longer your investment horizon, the more you can profit from compound interest and balance out fluctuations in securities.

Always bear in mind the costs of your chosen product. Over an extended period, even apparently small differences in costs can have a big impact on the overall return. 

 

Buy in to your occupational pension or pay in to pillar 3a?

If you want to make extra provision for your retirement, you essentially have two options: buy in to your occupational pension or pay in to pillar 3a.

The choice you make will depend on your personal situation and readiness to assume risks. There is no difference between them as regards taxes. Contributions can be deducted in full from your taxable income, and tax only becomes due when the money is paid out. 

In pillar 3a, you can only pay in up to the annual maximum amount; for almost all pension fund members, occupational pension buy-ins can be much higher. Amounts that exceed the pillar 3a maximum can thus normally be paid into your occupational pension.


Generally, a buy-in is better suited to people who

  • wish to draw their pension assets as an annuity in future.
  • do not wish to take on investment risks. The interest rate offered by a pension fund is much better than on conventional pillar 3a accounts. The assets are protected against losses and normally receive at least the OPA minimum interest rate.

Generally, pillar 3a is better suited to people who

  • wish to make riskier investments than the pension fund (for example, aiming for a high equity allocation) and are prepared to bear the financial market risk.
  • wish to stagger their payouts to avoid getting drawn into a higher tax band, but without taking partial retirement.
  • wish to use the money to finance the purchase of a home, because a withdrawal comes with fewer restrictions.