After emptying our third pillars for our home purchase, it's now time to find a new one in order to optimize our taxes. I need to find it before the end of the year. Which is why I want to crowdsource my choice decision.
Third pillar is one of these tax savings tips that is well known in Switzerland (I'll blog about it in details later on).
The less known thing is that you can invest (part of) this cash into the stock market.
Until last year, the Swiss federal regulation restricted pension fund allocation to a maximum of 50% of shares. It changed at the end of 2015 it seems, with actors like PostFinance and UBS who now propose funds with 75% of shares.
Although it sounds interesting, the TER of the PostFinance passive fund is 0.94%, and the UBS actively managed one is 1.74%. Not for us Mustachians, thanks.
After some Googling, I found this interesting VZ third pillar invested into ETFs. I did some more research and found on forums that Swisscanto seemed to propose an even better alternative with lower fees.
My investigations led me to this "Swisscanto LPP 3 Index 45 R" fund (Factsheet, KIID).
TER is 0.36% and its allocation is approximately 50% Swiss bonds, 5% foreign bonds, 20% Swiss equities, and 25% foreign equities. A strong focus on Switzerland that I will take into account when I define my new ETF portfolio allocation.
An important note: there exists two funds "Swisscanto LPP 3 Index 45" and "Swisscanto LPP 3 Index 45 R". The only difference is the additional R, that you really need. It means retrocession-free. That follows a regulation update which enforces financial institutions to stop taxing you with fancy fees.
Now that I know what to invest in, I need to find the bank which offers it with the lowest commission possible.
My goal is to crowdsource this research as 1/ it takes time and 2/ my Swiss German is far from perfect...
I gathered all Swisscanto resellers so that we can add for each one its commission on such a third pillar.
We got all the answers from banks and you find below all the results, cheapest first. Legend is CF for Custody Fees, TF for Transaction fees, and AiF for All-in-Fees.
|Rank||Bank||CF (%)||TF (%)||AiF (%)|
|4||GKB||0.40 ||0.55 |
 Minimum CHF 50/y
 Minimum CHF 5/transaction
 Minimum CHF 25/y
 Degressive fees the more money you have
 NWKB requires you to live or work in their Canton to open an account with them
The following banks don't offer this "R" third pillar version, but propose the "not R" with conditions specific to each bank:
- BCF - Don't offer this "R" third pillar version, but offer the "not R" for 0.60% TER (with 0.25% custody fees — min CHF 50/y, no transaction fees)
- APPKB - Offers the "not R" for 0.61% TER (without any additional fees)
- BCJ - Don't offer this "R" third pillar version, but offer the "not R" for 0.61% TER (without any additional fees)
- SGKB - Don't offer this "R" third pillar version, but offer the "not R" for 1.21% of total fees
The following banks don't offer this Index 45 (with or without the "R") from Swisscanto:
- BancaStato - Didn't contact them but it seems they don't offer it
- BCGE - Do not offer Swisscanto products at all
- BCV - Do not offer this Swisscanto product, nor the non-R version
I will contact french speaking banks on my side.
On your side, here is how you can help if you want:
- Share infos you might have found on German Kantonalbank websites
- Let us know your bank conditions if you already have this third pillar
- Contact your bank advisor if you are in one of the listed banks and ask for their commission fees on this specific third pillar
I'm gonna update this list with all the infos I receive.
Let's build a complete resource that will be helpful to many of us!