But at some point the moment of payout arrives. Many assume they could freely choose this point after retirement and leave the savings in place for as long as they like. But that is not the case.
As a rule, the payout of pillar 3a is linked to retirement. Upon reaching the ordinary retirement age the savings must in principle be withdrawn; waiting indefinitely is not possible. At the earliest, pillar 3a can be withdrawn five years before the reference age. There is, however, an important exception: anyone who remains in gainful employment beyond the ordinary retirement age can defer the contribution and thus also the withdrawal, as a rule by up to five years. Moreover, the payout does not happen automatically at a certain age such as 60, but is tied to retirement and the aforementioned deadlines.
This link to retirement makes sense, because pillar 3a as tied provision is specifically intended for the time after working life. Anyone who plans the withdrawal cleverly and, where possible, staggers it over several years can on top of that noticeably lower the tax burden. It is worth thinking through one's own timing early on.