Strengthening Pillar 3a
The parliamentary initiative "Strengthening personal pension provision" calls for increasing the maximum amount for tax deductions for payments within pillar 3a to CHF 15,000 for employees and CHF 45,000 for self-employed persons.
The Asset Management Association Switzerland is supporting the parliamentary initiative by SVP National Councillor Erich Hess for these reasons:
- Strengthening responsibility
The realities of life in Switzerland have changed in recent years. The increasing personalisation of society also requires adjustments in old-age provision.
In pillar 3a, there is no discrimination between full-time and part-time workers. Everyone is allowed to pay in the same amount. This benefits women in particular who, compared to men, work more often in part-time jobs and can thus build up less pension capital in the second pillar, for example.
Raising the maximum contributions reduces the dependency on the first two pillars and helps to reduce the individual pension gap, which tends to increase due to the reform backlog in the two first pillars.
- Strengthening individual old-age provision
It is in the interest of the state to promote individual old-age provision. After all, private old-age provision is not dependent on demographic and sociographic developments.
Raising the maximum contributions makes private old-age provision within the tax-privileged Pillar 3a more attractive. The incentive is strengthened for the middle class to set aside more for old age in good savings years.
- Strengthening the overall pension system
An attractive third pillar helps ensure that more people can maintain their accustomed standard of living in retirement. This complements the first two pillars, which are under reform pressure. The goal of retirees being able to access 80% of their last earned income even in old age will be achievable for more people by increasing the tax-deductible amounts. In the long term, this relieves the state both financially and administratively, even if an increase in maximum contributions in the short term leads to a reduction in the tax substrate.
The parliamentary initiative was submitted to the National Council by SVP National Councillor Erich Hess on 12/17/2020.
On 03/16/2022, the National Council followed up on the initiative, which means that it will be dealt with in the Committee for Social Security and Health of the Council of States (SGK-S).