3rd pillar 3a: contribution limits, tax deductions and withdrawal

What is the 3rd pillar 3a?

The 3a is restricted provision: voluntary retirement savings encouraged by the state through a tax deduction. In return for that benefit, the capital is locked until retirement, except for early-withdrawal cases provided for by law.

It supplements the AVS and the 2nd pillar to bridge the gap between your pensions and the income needed for your standard of living, often estimated at around 80% of your last salary.

The 2026 contribution limits

The deductible amount depends on whether you belong to a pension fund. Employees covered by a 2nd pillar have a fixed ceiling. People without a pension fund, either because they are self-employed or because they earn less than CHF 22,680 a year, may pay in up to 20% of their determining income, subject to an absolute cap.

The limits are set by the Confederation and adjusted periodically. Paying in the maximum every year is the most effective way to capture the tax advantage in full, because an unused allowance cannot be carried forward.

The tax saving, quantified

Every franc paid into the 3a is deducted from your taxable income for that year. The actual saving depends on your marginal tax rate, the rate applying to your last franc earned: the higher your income, the more the deduction is worth.

The table below quantifies the saving on a maximum contribution of CHF 7,258 by marginal rate. That rate depends on your income, your canton and your commune: a high income in a city can exceed 35%, while a modest income in a low-tax canton stays below 20%.

On withdrawal, the capital is taxed once, separately from income and at a reduced rate. The net advantage is the difference between the tax saved during the savings phase and the tax paid on withdrawal, which is generally far smaller.

When can you withdraw your 3a?

The 3a can be drawn at retirement, in principle within the five years before or after the reference age. Early withdrawals are possible in specific cases: buying your main home, starting self-employment, leaving Switzerland permanently, or a 2nd-pillar buy-in.

At the time of withdrawal, the capital is paid out and taxed once, separately from other income.

Optimising your 3a

Two main levers: pay in the maximum each year to maximise the deduction, and hold several 3a accounts so you can stagger withdrawals across different years and reduce the exit tax.

RetirePlan factors your 3a into a full projection alongside the AVS and the 2nd pillar, and quantifies the tax effect of your contributions and withdrawals.

Frequently asked questions

How much can you pay into a 3rd pillar 3a?

The annual deductible limit depends on whether you belong to a pension fund. Employees with a 2nd pillar have a fixed limit; self-employed people without a fund can pay in a higher percentage of their income, up to a cap. The amounts are set each year.

What tax saving does the 3a give?

Your contributions are deducted from taxable income. The saving depends on your marginal rate: the higher your income, the more advantageous the deduction. The capital is then taxed at a reduced rate on withdrawal.

When can you withdraw your 3a?

In principle at retirement, within the five years before or after the reference age. Early withdrawal is possible to buy your main home, become self-employed, leave Switzerland permanently, or fund a 2nd-pillar buy-in.

Why open several 3a accounts?

So you can close them in different years and stagger withdrawals. Because the exit tax is progressive, this reduces the total tax bill.