Splitting Pillar 3a into five accounts to save on taxes - does it really work in reality?

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danaudio

New member
Hello All, I'm new to the forum but old to the site and I already gained a plenty of valuable information :) Now I faced an interesting topic. I had a debate with a financial advisor related to taxation after Pillar 3a. He told that even if I would split the money to 5 pockets to open up one in each tax year, the authories most probably would not allow it, and tax it together. I could not believe it as I saw this recommendation even on sites like UBS.

However, after a research, I got to this page: https://www.smolio.ch/en/wissen/pillar-3a-partial-withdrawal-possible/
And related: https://www.parlament.ch/de/ratsbetrieb/suche-curia-vista/geschaeft?AffairId=20243067

It is about partial withdrawal, which might be not the same thing, but for me, hard to tell. Is there anyone around who know that actually the splitted withdrawal was possible with tax advantage? Do you have legal documents proving that it is possible?

Thanks in advance :)
 
danaudio said:
Hello All, I'm new to the forum but old to the site and I already gained a plenty of valuable information :)
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Welcome to the forum!
danaudio said:
It is about partial withdrawal, which might be not the same thing, but for me, hard to tell. Is there anyone around who know that actually the splitted withdrawal was possible with tax advantage?
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Currently, it's not possible to split an existing 3a account. And it's not possible to a partial withdrawal at retirement. You must withdraw a full account at once.

Currently, it's allowed, in most cantons, to withdraw on up to 6 different years (unless you still work). And that is legal. There are exceptions, such as the canton of Vaud and Neuchatel. In these cantons, they are stricter and will count multiple years together if you go over a certan limit.
danaudio said:
Do you have legal documents proving that it is possible?
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No, but it's an established fact that is still present in many websites including those of UBS and Finpension, among many others.

Currently, it is believed that the best strategy is to get 5 3a accounts. And then stagger them over different years (ideally on a different year of your second pillar). If you happen to live in a canton which is stricter, you should adhere to its rules and then stagger over fewer years.
 
Baptiste Wicht said:
Welcome to the forum!

Currently, it's not possible to split an existing 3a account. And it's not possible to a partial withdrawal at retirement. You must withdraw a full account at once.

Currently, it's allowed, in most cantons, to withdraw on up to 6 different years (unless you still work). And that is legal. There are exceptions, such as the canton of Vaud and Neuchatel. In these cantons, they are stricter and will count multiple years together if you go over a certan limit.

No, but it's an established fact that is still present in many websites including those of UBS and Finpension, among many others.

Currently, it is believed that the best strategy is to get 5 3a accounts. And then stagger them over different years (ideally on a different year of your second pillar). If you happen to live in a canton which is stricter, you should adhere to its rules and then stagger over fewer years.
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Thank you for the info :) Yes I found it on UBS website as well, I told to the advisor in my debate, but he kept saying that it won't work, and I should not believe everything I find online (I told but its UBS, but he did not care). However I rather not believe to the advisor, as I pretty much know he want to make me sign an insurance 3a which would be the biggest benefit... for him :)
 
danaudio said:
Thank you for the info :) Yes I found it on UBS website as well, I told to the advisor in my debate, but he kept saying that it won't work, and I should not believe everything I find online (I told but its UBS, but he did not care). However I rather not believe to the advisor, as I pretty much know he want to make me sign an insurance 3a which would be the biggest benefit... for him :)
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What advisor? Is he/she an UBS employee? If not: dump him/her!
 
Thanks for all the comments. It was very helpful that I could prepare for the meeting reading the blogs here and challange everything the advisor told, and ultimately showed me that he has 0 interest in my wealth, rather in his bonus :). I paid nothing and started together not a single investments. It was one of the companies asking you to give further names and contacts they can approach, I also refused to do so. It was a great lessons learned for us where we could ultimately decide that we will do all by our own.
 
OxygeN said:
What advisor? Is he/she an UBS employee? If not: dump him/her!
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Nope. Does it mean that UBS has an actual working advisor service where the focus is not on referral bonuses? I'm not planning any service for a while, just out of interest.
 
danaudio said:
Nope. Does it mean that UBS has an actual working advisor service where the focus is not on referral bonuses? I'm not planning any service for a while, just out of interest.
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Of course not. UBS is "advising" you in terms of suggesting to not leave money on your bank accounts but invest it with them... after I realised how much I was paying in management fees, I moved all my invested money over to IBKR (VT).
 
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