The third pillar refers to a supplementary pension that individuals build up themselves in addition to the statutory pension (the first pillar) and possibly the pension through the employer (the second pillar). In the third pillar, for example, people can use investment accounts, annuity insurance or other financial instruments to build up additional assets for retirement.

It is an individual and optional plan where you are responsible for your own pension accrual.

An important benefit is the tax advantage you can get by deducting contributions toward your supplemental pension from your taxable income in Box 1.