Pension apps compared: fees of the Pillar 3a apps like VIAC and frankly
Pension apps like frankly, finpension and VIAC manage Pillar 3a fully digitally and offer low costs. Compando gives an overview of the digital private pension providers and compares them by fees, strategy and minimum investment.
1. What is a pension app and how does it work?
A pension app manages Pillar 3a digitally, with high usability and no paperwork. With many providers the account opening takes under 15 minutes; payments and strategy selection then run entirely via smartphone.
At the start, the app guides you through a short questionnaire that determines your risk profile and investment strategy. Based on this, a personal strategy is recommended, which can be adjusted at any time later.
The key difference from the classic 3a savings account lies in the form of investment: the app invests the balance in securities such as funds and ETFs, instead of only paying interest on it. The actual pension function and the tax advantage are identical for both routes.
Good to know: The equity share is freely selectable and reaches up to 100 percent with individual providers; the portfolio is continuously rebalanced automatically. You adjust payments flexibly and without contractual commitment; many apps remind you as soon as the maximum contribution for the current year has not yet been used.
2. Pillar 3a fund comparison: what does a pension app cost?
From CHF 0 minimum investment, several fintech providers make it possible to enter digital pension provision. Even small amounts are enough to start. The total annual costs from flat fee and product costs range from under 0.20 percent to over 1 percent. Individual Pillar 3a providers extend their offering beyond Pillar 3a, for example with vested benefits solutions for the 2nd pillar or free saving in Pillar 3b.
Pension apps: costs compared
Provider | Cost p.a. | Minimum investment | Equity share | Special features |
|---|---|---|---|---|
True Wealth 3a | 0.14–0.21% | CHF 1 | up to 99% | no flat fee, automated |
finpension 3a | 0.39–0.41% | CHF 0 | up to 99% | low costs, many strategies |
Neon 3a | 0.39–0.45% | CHF 1 | up to 100% | integrated into Neon banking |
VIAC | 0.16–0.44% | CHF 0 | up to 99% | flexible strategies, broad ETFs |
Tellco (Eplix) | 0.40–0.72% | CHF 100 | up to 98% | broad investment universe |
frankly (ZKB) | 0.44–0.49% | CHF 1 | up to 95% | easy to use, Swisscanto funds |
Yuh | 0.50% | CHF 10 | up to 99% | all-in fee, integrated into banking |
Volt (Vontobel) | 0.54–0.56% | CHF 500 | up to 98% | active strategies |
Fluks 3a | 0.60% | CHF 2 | up to 100% | all-in fee, easy entry |
Selma Finance | 0.64–0.90% | CHF 500 | up to 97% | guided strategy |
Descartes | 0.64–0.76% | CHF 1 | up to 100% | sustainable strategies |
Gioia 3a | 0.72–0.99% | CHF 1 | up to 97.5% | flexible risk levels |
Cost p.a. = total annual costs from flat fee and product costs (TER) according to providers. Additional charges possible.
Several apps advertise sustainable strategies. Some of them only filter individual sectors out of the index, others align the entire portfolio with it.
How are the fees of pension apps calculated?
The ongoing costs of a fund are measured as a percentage of the managed assets. This figure is called TER (Total Expense Ratio) or total expense ratio and makes different funds comparable: the lower the fee, the higher the net return. The example assumes a one-off investment of CHF 3'100 at 6 percent gross return per year and shows the gain after 10 years.
TER | Gain after 10 years |
|---|---|
0.5% (low-cost app) | CHF 2'195 |
1.0% (classic solution) | CHF 1'950 |
Around CHF 250 difference arise solely from the higher fees. Because the fee falls on the entire balance every year, this gap grows along with your capital.
3. How safe is a Pillar 3a app?
The pension assets lie not with the app provider but in a legally independent pension foundation under the BVG and foundation supervisory authority. This makes them legally protected in the same way as with a major bank. If the provider goes bankrupt, the balance remains fully preserved and can be transferred to another provider.
The actual risk therefore lies not in the app but in the chosen investment strategy: a high equity share brings stronger price fluctuations but offers higher return opportunities over a long horizon. Login at most apps is via two-factor authentication.
4. What is the difference between a 3a account and a 3a fund?
With a Pillar 3a account, you save your money in a bank account and receive interest annually. This interest is currently low. A 3a account is therefore mainly suited to the safe build-up of retirement assets and to saving taxes.
A Pillar 3a fund, as offered by the pension apps, can be considerably more lucrative. Instead of only paying interest, the provider invests part of the money in securities such as shares, ETFs and bonds. Over a longer investment horizon this opens up greater return opportunities but also brings stronger price fluctuations. Those who can sit out the fluctuations until retirement usually do better with a fund solution.
5. Conclusion: are pension apps worth it?
Pension apps impress with easy handling, low fees and the real-time view of the invested capital. A direct one-to-one comparison is nevertheless difficult, because the providers differ in structure, strategy and equity share.
For a long investment horizon and cost-conscious savers, a pension app is usually the cheaper choice than the classic 3a account. Those who want personal advice or integrated risk protection are better served by a bank or insurance solution. The practical process of paying in follows the same rules for all routes, just digital with the app.
Compando tip
When choosing, pay particular attention to the fees and the investment focus. That way you find the solution that fits your financial situation and your investment horizon.
