What is the third pillar?

The third pillar refers to additional pension savings that individuals build up themselves alongside the state pension (the first pillar) and any employer-sponsored pension (the second pillar). Within the third pillar, people can use, for example, an investment account, an annuity insurance policy, or other financial instruments to accumulate extra capital for retirement.

It is an individual and voluntary arrangement in which you are personally responsible for building up your pension.

An important advantage is the tax benefit you may receive by deducting contributions to your additional pension from your taxable income in Box 1.