This question is mostly related to taxation. Indeed, having several Pillar 3A makes it possible to withdraw assets over different fiscal years and therefore to reduce the total tax burden. The more capital withdrawn, the higher the tax rate. Since withdrawals are possible from 5 years before the official retirement age, installments leave a good margin of tax savings by withdrawing capital in several installments.
The number of pillar 3A is absolutely not limited as long as the total amount of the total premium does not exceed the annual maximum deductible amount of CHF 7,258. This amount is revised every 2 to 3 years with a slight increase (around CHF 60.-).
Be careful, however, how the tax authorities consider the installments to the deadlines of your 3th pillars is collected differently depending on the canton of taxation.
The most advantageous cantons for Pillar 3A
Cantons such as the canton of Valais allow for an unrestricted deadline every fiscal year. This is valid for banking pillars such as those in insurance. Be careful, however, the 3th Pillars A in insurance must have deadlines in different fiscal years. In the event of an interruption before the due date (voluntary repurchase), the tax authorities will combine this deadline with a possible other deadline that would have accumulated over the same year.
The least advantageous cantons for Pillar 3A
The canton of Neuchâtel is the strictest example in fiscal distinction. In fact, whether it is a pillar 3A in banking or insurance, the tax authorities will accumulate the deadlines from 5 years before the official retirement age until retirement and tax them as a whole.
In this case, it is useless fiscally to have several contracts. However, you should not neglect the diversification of your investments.
Intermediate cantons
Most frequently, like the cantons of Geneva and Vaud, the tax authorities authorize up to 3 different deadlines per individual to tax them separately. These cantons allow a maximum of two 3A banking and a 3th Pillar A in insurance, a 3th Pillar A banking and two 3th Pillar A in insurance or three 3th pillar 3A in insurance.
The rule is that beyond this accepted number, the tax authorities no longer consider the deferral as retirement planning but as an evasion of tax obligations.
Conclusion
Depending on the canton of residence, it is useful to consider taxation at maturity when setting up pension plans via the 3th Pillar A.
Other situations also allow you to release the 3th pillar A during the contract and to smooth the taxation. Whether it's becoming self-employed, going abroad permanently or even buying your own home, these situations are an opportunity to review the whole of pension provision with a close eye on the fiscal aspect.
