Did you know you can put up to 100% stocks into your 3a pillar account?

You know how sometimes you just are so sure about something and you don’t question it until you are presented with a new fact?

It happened to me just recently in connection to the legally allowed stock percentage in 3a pillar accounts. I was under the impression, that there is a legal maximum of stocks allowed in the 3a pillar accounts.

The “Ordinance on occupational old-age, survivors’ and disability pension schemes” says in chapter 4, article 55 law says:

The following limits apply to the individual asset categories in relation to total assets:

a. 50 percent: for Swiss mortgage securities on real estate, buildings under construction law and building land; these may be pledged up to a maximum of 80 percent of the market value; mortgage bonds are treated as mortgage securities;

b. 50 percent: for investments in shares;

c. 30 percent: for investments in real estate, of which a maximum of one third must be abroad;

d. 15 percent: for alternative investments;

e. 30 percent: for foreign currencies without currency hedging.

Ordinance on occupational old-age, survivors’ and disability pension schemes” says in chapter 4, article 55 (Link); Emphasis added

It is important to note, that this applies to the 50 % shareholding limit does not apply to the individual account, but to all the holdings within the pension institution!

The holding bank will let you increase the stocks exposure within the account, as long as you are risk-tolerant and have a long enough investment horizon. I am not the most risk-tolerant person, but I still have 30 years to my official legal retirement age – so let’s change some things!

Starting in 2020 I will be changing the strategy of my 3a pillar accounts. I have all my 3a accounts with VZ Vermögenszentrum and their 3a pillar with ETF solution. They allow you to select from a prefiltered list of ETFs when putting together your strategy. Find the file below:

All three 3a accounts with them, will be switched to the new strategy.

Old strategy with 45 % stocks

22%Stocks GlobalMSCI WorldiShares MSCI World ETF 0.24%
23%Stocks SwitzerlandSLIiShares SLI ETF A 0.35%
5%Real-EstateSXI Real Estate® Funds Broad Total Return UBS ETF SXI Real Estate A0.25%
6%Specialties and raw materialsGoldGAM Physical Gold A hdg 0.23%
10%Bonds GlobalGlobal Bond IndexVanguard Glbl Bd Idx CHF hdg I 0.15%
31%Bonds SwitzerlandSwiss Bond Index Domestic Government® 7-15 iShares Swiss Dom Govt Bd 70.15%

New strategy with 90% stocks

25%Stocks USAMSCI USAXtrackers MSCI USA0.07%
25%Stocks Europe EURO STOXX 50Xtrackers Euro Stoxx 500.09%
25%Stocks SwitzerlandSPIiShares Core SPI0.10%
22%Stocks Emerging MarketsMSCI Emerging Markets CSIF Equity Emerging MarketsMSCI Emerging Markets0.25%

One thing you’ll notice, is that the overall TER will be significantly lower, and that I simplified the strategy into four broad regions. I’ll keep you updated on the progress.


Where do you have your 3a accounts? Did you pick your own strategy? What is your stock percentage?

Let me know in the comments below or send me a message!

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