What to ask when comparing pension solutions

1. What job should this plan do?

Start with your pension statement, household budget and emergency reserve. Are you filling a retirement gap, protecting a dependent partner, or both? Those are different needs. A bank-based 3a arrangement and an insurance policy are both recognised forms, but their commitments differ. Write down a contribution you could maintain during parental leave or a quieter business year. The legal maximum is a ceiling, not a personal savings target. Money needed for near-term expenses belongs in your liquidity discussion before a long-term contract is considered.

2. How much may I contribute in 2026?

The ordinary annual limit is CHF 7,258 if you belong to a second-pillar pension institution. Without that affiliation, the limit is 20% of eligible net earned income, capped at CHF 36,288. Check the applicable income calculation, especially when employment status changes. These limits cover your combined ordinary contributions across providers. For the 2026 deduction, the provider must receive the contribution by 31 December 2026; allow processing time. Catch-up contributions have separate eligibility conditions and are not automatically available just because you skipped an earlier payment.

3. What happens if I stop paying?

Ask each provider to answer the same hypothetical case: you contribute CHF 300 monthly for two years, then need to pause for a year. What remains invested, what charges apply, and which protection continues? Banking arrangements generally allow flexible contributions; insurance premiums follow contractual rules. Request written figures for a premium pause, a paid-up policy and a transfer or surrender, where available. An early insurance exit can reduce the value substantially. Compare the amount actually transferable, not merely the premiums paid. Do not cancel existing protection before understanding its replacement.

4. Where does each franc go?

Request the saving portion, risk premium and all acquisition, administration, investment and exit charges separately. Check whether a quoted return is before or after those charges. Compare offers using the same contribution, duration and investment assumptions. For example, CHF 300 per month is CHF 3,600 per year, but an insurance premium can also finance protection and charges: it is not necessarily CHF 3,600 invested. Ask how the adviser is remunerated and whether this affects the options shown. A simple written breakdown is more useful than a headline return.

5. Which figures are contractual guarantees?

Separate guaranteed benefits from investment projections and non-guaranteed surplus participation. Ask for favourable, central and adverse scenarios, including an early-exit value. FINMA has highlighted overly optimistic life-insurance illustrations; its adverse scenario is not the worst possible outcome. Ask what a market fall near the planned retirement date would mean for your contract. A securities-based arrangement can lose value. FINMA supervision is not a promise that a proposal suits your household: individual life-insurance tariffs are not approved by FINMA. Read the contract and the assumptions together.

6. What protection am I actually buying?

If death or disability benefits are included, identify the insured person, benefit amount, waiting period, exclusions and conditions for premium waiver. Compare this with your employer pension cover and any separate life or income-protection policy. Ask for a written explanation of overlaps and gaps. Do not compare a savings-only proposal with a proposal including insurance solely on the final projected balance: their purposes and costs differ. Medical acceptance and policy terms matter when replacing cover. Obtain the applicable conditions before making a decision.

7. Does the tax case match my residence?

Eligibility to contribute and the route to a tax deduction are separate questions. Living in France while working in Geneva does not automatically make a 3a contribution advantageous. Geneva’s standard quasi-resident test uses at least 90% of worldwide gross income taxable in Switzerland, combining spouses’ incomes when married; special cases need review. Use the appropriate calculator below, then compare the tax position alongside fees, protection and restricted access to savings. Bring two complete proposals, existing statements and your questions to an adviser. General information cannot determine your individual tax outcome.