Pillar 3a custody account
Higher earnings potential for your money in the third pillar
The Fisca custody account is the pillar 3a custody account of UBS. Your money is invested in Vitainvest investment funds – so you can benefit from developments on the financial markets.
Save on taxes
Payments into pillar 3a are deductible from taxable income
Higher earnings potential
Your money does not earn interest, but is invested in UBS Vitainvest investment funds
Advance withdrawal
Possible, for example when buying your own home or becoming self-employed
Comparison: UBS Fisca account vs UBS Vitainvest investment funds
With the UBS Fisca custody account, your money is invested in Vitainvest investment funds – allowing you to benefit from developments in the financial markets.
Your choice of funds depends on your personal investment strategy and risk tolerance. You can also invest your money in several investment funds.
An example to illustrate:
*Calculations are based on the current interest rate of the UBS Fisca account as well as the following assumptions: a person has paid the maximum annual amount of CHF 6,768 into pillar 3a for 30 years. An early withdrawal of retirement assets is not included in the calculations.
**Calculations are based on the UBS Expert Opinion, which envisages a reduction in the equity component and therefore a lower risk of loss over the investment horizon. The expected annual return assumed for the calculation of capital growth is based on gross values before fees and taxes. Calculations are based on the following assumptions: investment horizon of 30 years and full investment of existing retirement assets and future annual payments. An early withdrawal of retirement assets is not included in the calculations. Past performance is not a reliable indicator of future results. The performance shown does not take into account any commissions and costs for the subscription and redemption of shares. Commissions and costs have a negative impact on performance. The information in this document is provided without any warranty or guarantee, is for information purposes only and is intended solely for the recipient's personal use. While these forward-looking statements represent our judgments and expectations concerning the future development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations.
Good advice pays off
We’re glad to answer any questions you may have about pensions and will give you comprehensive advice – for example, on the following topics:
- How can I invest my money to get higher returns?
- How can I finance my own home with pension funds?
- How can I best plan my retirement to save on taxes?
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A custody account is the ideal complement to a retirement savings account – because saving for retirement with funds offers higher returns over the long term compared to a savings account. Your money is invested in UBS Vitainvest investment funds, which allows you to combine the tax advantages of retirement savings with investment funds.
Flexible payments
A custody account gives you flexibility: In line with your investment strategy and within the legal requirements, you can buy or sell fund shares. However, this is subject to a maximum amount, which is set annually by the Swiss Federal Department of Social Security.
Good to know: You must normally sell pillar 3a fund shares as soon as you reach the AHV retirement age. This is not the case with Vitainvest investment funds. You can transfer them to your securities custody account when you retire. This lets you stay flexible with regard to selling the shares later.
With a pillar 3a custody account, you can save on taxes several times over:
- You can deduct the annual paid-in amount from taxable income.
- The assets saved up are exempt from wealth tax until maturity.
- Interest and capital gains are exempt from income tax.
- When your retirement savings are paid out, they are taxed separately from income at a reduced rate.
- By staggering your 3a withdrawals, you can keep your tax rate even lower.
The state counts your own home as part of your retirement provision. This lets you use assets from pillar 3a before reaching AHV retirement age to finance the purchase of a home – though only if you move into the house or apartment yourself.
In terms of financing, you have the following options:
- You can pledge your retirement capital as collateral for your mortgage.
- You can withdraw your retirement capital and thus increase your equity when purchasing the residential property – or you can use it to pay off an existing mortgage.
You can also use the amount you've paid in annually to the custody account to indirectly amortize the debt on the mortgage.
We’ll gladly show you in detail how you can finance your own home with retirement assets.
In principle, the capital you hold in a custody account is bound by law until you retire – and the soonest you can access it is five years before you reach the AHV retirement age. Early withdrawal, however, is possible if you
- buy or build your own home, which you move into yourself;
- would like to pay back debt on a mortgage for a residential property you live in yourself;
- become self-employed;
- leave Switzerland permanently;
- buy into a pillar 2 pension fund;
- draw a 100% benefit from the Swiss Federal Invalidity Insurance and the invalidity risk is not insured.
