Pillar 3a: 6 reasons why neon convinces
neon is the Swiss «All-in-one» app that brings your account, savings, investment, and retirement planning under one roof. Retirement planning and banking in one app, that sounds simple, and with neon it actually is. Here we show you why neon's pillar 3a is so convincing: with a complete overview of your finances, quick opening, easy transfer, and getting started from just 1 CHF – without having to be a financial expert.
neon's pillar 3a also stands out when comparing prices and performance with VIAC, finpension, frankly, and traditional banks. But since brevity is the soul of wit, we have broken this down for you in detail in a separate blog on the fee and performance comparison.
Do you need more information about pillar 3a before reading on? Here you can find everything you generally need to know about pillar 3a. And our blog how Switzerland's 3-pillar system works gives you «the big picture».
Your finances, one app, everything at a glance
Does this sound familiar? You have your account with one bank, your pillar 3a with another provider, and your ETF investment plan somewhere in between. Three apps, three logins, zero overview. It doesn't have to be that way. With neon, your account, investing, and retirement planning are united in one place. You can see at a glance what your total balance is, including your private or joint account, your Spaces, your investment portfolio, and your pillar 3a.
In the total screen of the app, you can specifically hide individual amounts, for example certain Spaces or the pillar 3a, to immediately see how much money you really have available to spend and what money is meant for the future. You don't have this advantage with VIAC, finpension, or frankly, because they are purely retirement apps. But with neon you will find what you need, because we are a true «All-in-one» solution: a complete overview of your finances, at a glance.
Another benefit: you set up your standing order for payments into pillar 3a once – and your wealth building continues automatically without you having to actively think about it. Yet you stay on top of things: your salary goes to your neon account, and all your payments leave from there, including your payment into pillar 3a. Everything in one place, everything transparent.
Get started in less than five minutes
Retirement planning sounds like paperwork, advisory appointments, and hours of reading fine print. Not with neon. You can open pillar 3a in just a few minutes directly in the app. Just the way it should be: uncomplicated, fast, without barriers. So if you want to start saving for your future today, you can do so.
Transferring is also simple: you can transfer your existing pillar 3a to neon easily and free of charge, directly in the app. Read here on how exactly you can transfer your existing pillar 3a to neon.
Join from just 1 CHF
Are you still waiting for the «right moment» to start planning for retirement? There is none. But there is a simple first step: just get started. With neon, the barrier is as low as possible: you can join from just 1 CHF, and your money starts working for you from 10 CHF. In other words: once you have 10 CHF in your 3a balance, your money will be invested. There is no minimum monthly amount you have to pay in.
This applies to everyone, but especially to those just entering the workforce. Starting early means benefiting the longest from the compound interest effect. A Morgan Stanley analysis of over 50 years of market data shows: with an investment horizon of one year, around 23% of the months are negative. Over ten years, this value drops to just 3%. When investing, time is your strongest ally. And because pillar 3a is a long-distance project, this applies all the more, regardless of whether you pay in 50 or 500 CHF per month.
The right strategy, without becoming a portfolio architect
Uncomplicated and fast does not mean we leave you on your own. When you open your pillar 3a, we ask you a few questions about your risk tolerance, your investment horizon, and how much you can pay in annually. Based on your answers, we suggest a suitable investment strategy to make the selection easier. With neon, there are five different strategies, ranging from a 25% to 100% share of equities. In addition, each strategy can be personalised with a Swiss or sustainable focus. You can find the details in the blog: Find your suitable 3a investment strategy. You can change your strategy later at any time, free of charge.
The home bias: deliberately low, deliberately flexible
A point that many overlook: many 3a providers have a high share of Swiss equities in their standard strategies, whether you want it or not. This is called «home bias». It is different with neon: in the standard strategy, the Swiss portion accounts for only 10% of the equity portfolio. In comparison: it is 39% each with finpension and VIAC, and 35% with Yuh.
So you have complete freedom of choice from the start. If you deliberately want more Switzerland, choose the Swiss focus and increase the share to 60%. If you want to remain globally diversified, go for it. Your decision. And this freedom goes further: you can even combine the Swiss focus and the sustainability focus, tailoring your portfolio exactly to your values and preferences. No other 3a provider in Switzerland offers you this flexibility.
Up to five portfolios for more tax flexibility
If you are already thinking ahead, the option to manage multiple 3a accounts brings a real tax advantage when drawing benefits. The keyword is tax progression: by drawing your 3a assets in staggered stages, you can keep your tax rate lower. That is why it is worth opening multiple 3a accounts to remain flexible when drawing your pension. Five years before retirement age, you are already allowed to close one portfolio each year. With neon, you can open up to five 3a portfolios.
Summary: neon as a complete package
You can find low fees and competitive returns in our pillar 3a fee and performance comparison. What also sets the neon pillar 3a apart: it allows you to keep track of your finances because it is seamlessly integrated into the neon app. Plus: opening takes just a few minutes and transferring an existing pillar 3a is also very easy. All this with understandable strategies and real leeway if you want more control. Your retirement planning belongs where the rest of your finances are: with neon.
