The interest rates of pillar 3a accounts are, in most cases, only slightly above the zero percent mark. At this low level, it will be difficult to earn enough capital gains even over a long period. That is why it is advisable even in your personal retirement planning to tolerate somewhat greater fluctuations and to use the earnings potential in the markets better. Securities, and especially equities, are suitable for this purpose.
Pillar 3a retirement funds make widely diversified investments in bonds, real estate and also in equities in compliance with legal guidelines. A certain amount of risk tolerance is necessary since equity prices can fluctuate strongly.
A UBS study shows that pillar 3a pension assets should be invested differently depending on your age. Until you are 44, you can invest up to 75 percent of your 3a savings in equities. UBS recommends a portfolio with a 46-percent equity allocation for 45- to 56-year-olds. If you are over 57, you should transfer your ongoing contributions to a fixed-income account.