Do you want to protect yourself, save taxes and at the same time plan for your future? Welcome to the world of Pillar 3a ! It is more than just a savings instrument - it is a powerful tool for achieving your financial goals. In this article, I will explain everything you need to know about Pillar 3a and how you can use it to your advantage.
What is Pillar 3a?
Pillar 3a is a component of the Swiss pension system and serves to close gaps in retirement provision. Together with the AHV (1st pillar) and occupational pensions (2nd pillar), it forms the basis for a financially secure life in old age.
Important: Pillar 3a is a tied pension plan . This means that you cannot use the money freely until shortly before retirement - unless you meet certain conditions such as:
Purchase of owner-occupied residential property.
Starting a self-employed activity.
Final departure from Switzerland. (You can find out more about this in my blog article for expats ).
Why is Pillar 3a special?
You can make tax-deductible contributions of up to CHF 7,258 (2025, with pension fund).
Without a pension fund, the maximum amount is 20% of net income , up to a maximum of CHF 36,288.
During the savings phase, your capital remains exempt from wealth tax.
New from 2025: Subsequent payments possible
From 2025, you can close contribution gaps in Pillar 3a up to ten years retroactively . This is ideal if you were unable to pay the maximum amount in one year, because you can catch up later and still take advantage of the tax benefits.
Example:
In 2025, you only paid CHF 5,000 of the possible CHF 7,258 into Pillar 3a. In 2026, you will receive a pay rise and have more money available. Now you can pay the maximum contribution of CHF 7,258 for 2026 and also make up the CHF 2,258 difference from 2025 .
The tax benefits for 2026 will then apply to the entire amount – i.e. CHF 9,516.
How can you invest in Pillar 3a?
Pillar 3a offers you three main options for investing your money:
1. Pension account at a bank
A classic savings account with a fixed interest rate.
Advantages: Safe and stable – perfect if you need the money in the next 5 years.
Disadvantages: Low returns, often below the inflation rate.
2. Funds or ETFs (securities solutions)
Your money is invested in funds or ETFs that consist of stocks, bonds or other securities.
Advantages: Higher return potential – ideal if you still have many years until retirement.
Disadvantages: Fluctuations in value and risk of loss, especially with a short-term investment horizon.
Important:
There are big differences between providers and the costs of the products. Do your research before you decide. You should only choose a product once you understand how ETFs work and what fees are acceptable.
3. Insurance solutions
Combines savings with insurance protection, such as life or disability insurance.
Advantages: Useful if people (e.g. children, partner) are financially dependent on you.
Disadvantages: Higher costs and less flexibility than banking solutions.
Tip: Think carefully about whether you really need life insurance. If no one is financially dependent on you, a bank solution might be a better fit for you.
Which strategy suits you?
The right choice depends on your life situation and your goals:
Short-term goals (payout planned in 5 years or less):
Choose a classic retirement account. It offers security and protects your money from exchange rate fluctuations.
Long-term goals (payout planned in more than 10 years):
Use funds or ETFs with a higher share of stocks to benefit from the growth opportunities of the capital market.
Protection of financial responsibility:
An insurance solution with death or disability cover can make sense if you have a family that depends on your income.
Tips for optimal use of Pillar 3a
Open multiple 3a accounts:
This allows you to reduce the tax progression when you withdraw your money. It is recommended that you save around CHF 40,000 to CHF 60,000 per account .
Take advantage of the tax benefits:
Pay the maximum amount annually to reduce your taxable income.
Compare providers:
Pay attention to fees, interest rates and investment opportunities – these can vary greatly depending on the bank or insurance company.
Stay flexible:
Consider carefully whether you need an insurance solution. If you have no financial obligations, a banking solution may be more cost-effective.
Conclusion: Your Pillar 3a, your future
Pillar 3a is an incredibly versatile instrument for planning for your old age, saving taxes and building wealth in the long term. With the new options from 2025, it will become even more flexible. Think about which solution best suits your life - and start now to benefit from the many advantages!
📩 Do you have any questions? In my workshops you will learn how to make the most of Pillar 3a. Let's shape your financial future together! 🌟
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