Pillar 3a.
All the questions and answers.

Pillar 3a is part of the Swiss pension system. Together with pillar 3b, it forms the private pension component of Switzerland’s three-pillar model. Pillar 3a solutions are available as an account/custody account with a bank or as a policy with an insurance company.

You can pay a maximum amount defined by law into pillar 3a each year – and thus supplement your pension benefits from pillar 1 and pillar 2. You might do so in order to have more money available after retirement or to protect yourself and your loved ones in the event of disability or death, for example. 

Pillar 3a is also a great way of reducing your tax bill. Up to the maximum limit, money that you deposit in a pillar 3a solution can be deducted from your taxable income. 

However, money that you have paid in can only be withdrawn in certain cases – for example, if you buy residential property, emigrate from Switzerland or become self-employed. That is why pillar 3a is known as “restricted retirement provision”.

Pillar 3a is also a great way of investing money for the long term. With a 3a fund custody account, you put your money in investment funds and thus benefit from the prospect of returns. Both banks and insurance companies offer pillar 3a fund custody accounts.

Deposits in a pillar 3a policy or a pillar 3a account/custody account are possible annually up to the maximum pillar 3a amount defined by law.

For the year 2026, this means:

• Employees with a pension fund can pay in a maximum of CHF 7,258
• People who are working but do not have a pension fund (e.g. the self-employed) can deposit up to 20% of their net income – up to a maximum of CHF 36,288
• Following a recent change, it is now possible to make retroactive payments into pillar 3a for 2025 and subsequent years Retroactive pillar 3a payments: everything you need to know (2026).

Normally, pillar 3a can be paid out no earlier than five years before and no later than five years after normal retirement age, i.e. between the ages of 60 and 70.

However, deferral until five years after the normal AHV retirement age is only possible if you provide proof that you are still in gainful employment.

Early withdrawals of pillar 3a funds are possible in some specific cases. You can have your pillar 3a capital paid out early:

• To buy or build residential property for your own use
• To repay a mortgage loan
• If you become self-employed or are already self-employed and take up another self-employed activity
• If you leave Switzerland permanently
• If you are drawing a full disability pension from the Swiss Federal Disability Insurance (IV)
• In order to buy into pillar 2

In some cases, you can also have only part of your pillar 3a funds paid out. It is best to talk to your advisor about this.

Private retirement provision is subsidised by the federal government in three ways:

1. You can deduct pillar 3a contributions from your taxable income and thus save money every year when you file your tax return.
2. Your pillar 3a funds do not count as part of your assets, so you do not pay wealth tax on them.
3. A reduced rate of capital gains tax is applied when you have your pillar 3a assets paid out.

In other words, providing for your retirement in pillar 3a means you benefit from tax savings.

Having multiple 3a accounts is generally a good idea as it enables you to minimise your tax burden with staggered payouts.

Most cantons allow this form of tax optimisation. Find out whether this also applies to your canton in the guidelines for your tax return, directly from the tax authorities or by asking an advisor.