Providing for the future while saving tax
Saving with pillar 3a pays off. Because you’re not only saving for retirement, you can also deduct your payments from your taxable income. This means you reduce your tax bill every year.
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The maximum amounts are determined by the Federal Social Insurance Office and can change each year. Currently, the maximum amounts are:
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The most important facts about pillar 3a
Contributions
- You may contribute the specified maximum amount each year and deduct this amount from your taxable income.
- You can contribute to pillar 3a if you are employed or receive unemployment benefits and you live in Switzerland.
- If you remain employed, you may continue to make contributions for five years after reaching retirement age.
Payout
- You can have the money paid out no more than five years before ordinary retirement age.
- In a few special cases, you are allowed to withdraw the money earlier – if you emigrate, go into business for yourself or buy a home that you use yourself, for example.
Save tax
- You can deduct your annual contributions from your taxable income.
- You do not have to pay wealth tax on your pillar 3a assets.
- Your pillar 3a assets are not taxable until you withdraw them. This tax rate is more favourable than the normal rate.
- You may have more than one 3a account. The advantage: you can have your money paid out in phases and your savings will not be subject to taxation at the same time. We recommend a maximum of CHF 40,000 to CHF 60,000 per 3a account.
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You can find more tips and tricks around pensions in our magazine.