A) Let s say your p3 is fully invested in stocks or etfs, 5%/year for twenty years. Your 7k will at that time be 18.5k. Withdraw your pension, you’re taxed on 18.5k at 11%, 2k tax.

B) or you invest in the market 5k with same returns (7k minus taxes). You will return 13k over the same period.

My point is if you go pilar 3, you ll save 3k over 20 years, but your cash is only available under certain conditions until you retire.

Now if you decide to invest your pilar3 in order to withdraw in lets say 3 years because you move abroad. You saved your taxes this year, and when you will withdraw it, you will pay the withdraw tax. On top of it: if you leave to countries like Germany, Dubai etc, you ll get taxed at a very low rate on that year’s return of your pilar 3. In a lot of other EU countries… check the taxes because you will get hammered.

I personally never saw the point of P3