Pillar 3a — Tax-Free Retirement Savings
Pillar 3a is the single most effective legal tax deduction in Switzerland. Every franc you contribute reduces your taxable income — saving hundreds to thousands per year.
Step by step
- 1
Understand the 3-pillar system
Pillar 1 (AHV) = state pension. Pillar 2 (BVG) = employer pension. Pillar 3a = voluntary private savings with tax benefits. Together they aim to maintain your standard of living in retirement.
- 2
Know the maximum contribution
Employees: CHF 7,258/year (2025). Self-employed without BVG: CHF 36,288/year. Contribute the maximum every year for the biggest tax saving.
- 3
Choose a provider
Banks: UBS, PostFinance, Raiffeisen (capital guaranteed, low returns). Digital: VIAC, frankly, finpension (invested in ETFs, higher long-term returns). The difference over 30 years is significant.
- 4
Open multiple accounts
You can split contributions across up to 5 accounts. At withdrawal, each account is taxed separately — staggered withdrawals reduce the one-time tax hit.
- 5
Withdrawal rules
Locked until 5 years before retirement age (60 for women, 60 for men). Early withdrawal allowed for: buying property, leaving Switzerland permanently, starting self-employment.
- 6
Claim the deduction
Declare your 3a contributions on your tax return (or correction request for Quellensteuer). The full amount is deducted from taxable income.
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