Frequently asked questions

Pillar 3a is part of the third pillar of the Swiss pension system – private retirement provision. It serves to close the financial gap after retirement, as the AHV (state pension) and occupational pension fund (Pensionskasse) on average only cover about 60% of the last income during retirement. Pillar 3a is tied, meaning that withdrawals are only possible under certain conditions.
For the year 2025, the following maximum contribution amounts apply to Pillar 3a:
  • Employees with a pension fund: maximum CHF 7,258.–
  • Self-employed individuals without a pension fund: up to 20% of net earned income, but no more than CHF 36,288.–
Contributions to Pillar 3a can be deducted from taxable income, leading to a reduction in the tax burden. The exact savings depend on income, canton of residence, and tax rate.
The earlier you start with Pillar 3a, the more you benefit from the compound interest effect. Starting is particularly worthwhile:
  • with a higher income (tax advantage),
  • if you have missing contribution years, e.g., as a newcomer to Switzerland,
  • or if you invest in equity funds and have a long investment horizon.
The Pillar 3a assets can be withdrawn at the earliest five years before the regular AHV retirement age. Early withdrawal is possible under certain conditions, e.g., for the purchase of owner-occupied residential property, when starting self-employment, or when leaving Switzerland.
Yes, you are allowed to have multiple Pillar 3a accounts with different banks or insurance companies. This is particularly useful to reduce tax progression when withdrawing funds at retirement age (staggered withdrawals).
In the event of death, the Pillar 3a assets are paid out to the legally defined beneficiaries. The order of beneficiaries is legally regulated and includes, among others, the spouse, direct descendants, or other supported persons.
No, assets in Pillar 3a are exempt from wealth tax.
Retrospective payments into Pillar 3a for past years are generally not possible. A buy-in requires that the ordinary annual contribution for the respective year was fully paid.
Pillar 3a is tied pension provision with tax advantages and restricted withdrawal options. Pillar 3b is flexible pension provision, where contributions are not tax-deductible, but it offers more flexibility regarding contributions and withdrawals.
From January 1, 2025, the new pension law in Switzerland will allow missed Pillar 3a contributions to be made up retroactively for up to 10 years. This applies to all employed persons with AHV-liable income who did not contribute the full Pillar 3a maximum amount in previous years. By making catch-up payments, you can utilize additional tax advantages and specifically close your pension gap.
That depends on how many years you have gaps. For example, if you haven't paid anything for 10 years, you can pay in over CHF 70,000 (depending on the annual limit).
Newcomers to Switzerland often have gaps in their AHV (state pension), which reduces their future pension. With Pillar 3a, you can build up tax-advantaged pension capital and thus compensate for missing pension entitlements – particularly important if you enter the Swiss system late.
Individuals taxed at source (e.g., with a B permit) can only deduct Pillar 3a contributions for tax purposes if they apply for a subsequent ordinary assessment (NOV). ✅ The 3a contribution is deductible if:
  • your gross income is over CHF 120,000 (NOV is then mandatory),
  • you have income not taxed at source (e.g., from assets, rent, secondary employment),
  • or you voluntarily apply for an NOV by March 31 of the following year at the latest. Attention: The ordinary assessment is permanent – a switch back to pure taxation at source is no longer possible. 💡 Tip: Get tax advice beforehand – depending on your place of residence, an NOV might lead to a higher tax burden despite 3a deductions.