What makes more sense: a purchase into the pension fund or payments into pillar 3a?

Both a voluntary purchase into the pension fund and payments into pillar 3a improve your retirement provision and can be deducted from income taxes. Because of this, both are generally sensible measures – there are, however, exceptions. An important difference is that missed payments into pillar 3a cannot be made up afterward. By contrast, voluntary purchases into the pension fund are possible at pretty much any time (provided that purchasing potential exists). From a tax perspective, it therefore usually makes sense to make the maximum payment into pillar 3a first, and only then consider a purchase into the pension fund. Generally, a pension fund purchase is more worthwhile the higher the taxable income. The highest return after taxes can usually be achieved with a purchase shortly before retirement. But be careful: A purchase should be made at least three years before retirement, if a capital withdrawal is planned. The state of the pension fund also plays a role; a purchase may only make sense if it is very healthy.

Alongside many other aspects, life expectancy plays an important role. The higher it is, the more sensible a pension fund purchase is if drawing a pension is planned. Given the many additional aspects that need to be taken into account, we advise insured persons to discuss the different options with an expert.