Tax saving tip 2: Payment into the pillar 3a

19 November 2020

Tax saving tip 2: Payment into the pillar 3a

Payments into the pillar 3a are also fully deductible from taxable income within the scope of the earned income.

The maximum payment amounts for the year 2021 are:

  • Employees with pension fund membership CHF 6’883
  • Without pension fund membership: 20 % of annual earned income, but max. CHF 34’416 (self-employed / pensioners up to 70 years)

As the National Council and Council of States have adopted a motion that pillar 3a funds can be paid in arrears every 5 years, it can be assumed that this change in the law could be implemented quickly. However, it is somewhat risky to decide today not to make any payments in order to be able to benefit from them later.

Most providers of pillar 3a accounts allow you to invest in shares, which has led to a much higher return in recent years.

There are no blocking periods when withdrawing capital from a pillar 3a account, as is the case with pillar 2 accounts.

Capital can be withdrawn from Pillar 3a accounts in the following cases:

  • Reaching the regular retirement age
  • Change to self-employment
  • Buying or investing in your own home
  • When leaving Switzerland permanently

As with withdrawals from the 2nd pillar, withdrawals from the pillar 3a are taxed separately at a privileged rate. Due to the progression larger withdrawals are taxed more heavily. Therefore it may make sense to divide up the payments among several accounts resp. financial institutions. The withdrawal must be coordinated with possible withdrawals from the 2nd pillar.

Lisa Piller will gladly help out for further questions:

+41 41 226 30 54
This email address is being protected from spambots. You need JavaScript enabled to view it.


Agira AG _ Pilatusstrasse 26 _ Postfach _ CH-6002 Luzern
Phone +41 41 226 30 50 _ This email address is being protected from spambots. You need JavaScript enabled to view it. _ www.agira.ch