Pillar 3a withdrawal: when to withdraw, how to stagger, what tax to expect

From when and until when pillar 3a is paid out

Regular withdrawal is possible at the earliest five years before the AVS reference age, so from 60 with a reference age of 65. If you are no longer working, the money must be withdrawn by the reference age at the latest; after that the bank or insurer pays it out automatically.

If you keep working beyond the reference age, you can defer the withdrawal by up to five years, so until 70, and even keep contributing, provided you can show earned income. Retiring early at 62 therefore lets you leave your 3a accounts untouched until 65, but no longer.

Early withdrawal: the five legal reasons

Before the regular age, pillar 3a can only be withdrawn for one of the reasons exhaustively listed in the ordinance. An early withdrawal is taxed in the same way as a regular one.

Each account is withdrawn in one go: why you want several 3a accounts

A 3a account can in principle only be withdrawn in full; partial withdrawals are not provided for at regular retirement. With a single account, your entire 3a therefore lands in one tax year.

The fix: hold several 3a accounts or securities portfolios, in practice three to five, and close them in different years. An existing account generally cannot be split afterwards, so open new accounts early and spread your future contributions across them, ideally so they end up of similar size.

How the pillar 3a payout is taxed

The payout is not added to your other income. It is taxed separately at a reduced rate: at one fifth of the ordinary scale for federal tax, and under each canton's own special scale. Your place of residence on the payout date determines the canton.

Two points are often overlooked. First, the rate is progressive: the larger the amount withdrawn in a single year, the higher the percentage. Second, all pension capital paid out in the same year is added together (3a, pension fund lump sum, vested benefits) and, for married couples, that of both spouses.

Worked example: all at once or staggered

Mr K. has CHF 180,000 in pillar 3a, split across three accounts of CHF 60,000, and plans to take CHF 300,000 of pension fund capital at 65. Option A: he withdraws everything at 65, i.e. CHF 480,000 in one year. Option B: he closes the three 3a accounts at 61, 62 and 63 and takes the pension fund capital alone at 65.

With the assumed average rates, staggering saves around CHF 15,000. The higher the amounts and the more progressive the cantonal scale, the bigger the effect. Withdrawing earlier also means the money becomes taxable private wealth sooner and loses its 3a advantages.

Securities 3a: sell or transfer in kind

With a fund-based 3a solution, the units are usually sold at withdrawal and paid out in cash. Some providers also allow a transfer in kind: the fund units move to an ordinary securities account and tax is based on their market value on the transfer date. That way you do not have to sell in a down year.

Staggering also reduces timing risk, because your whole balance is not valued on the same day. For each account, decide a few years before the planned withdrawal whether to reduce the equity share.

Withdrawing when you move abroad

If you leave Switzerland for good, you can withdraw your entire pillar 3a, including when moving to the EU/EFTA. If you live abroad when it is paid out, the provider deducts a withholding tax that depends on the canton where the pension foundation is based. Depending on the double taxation agreement, you can reclaim it in full or in part within three years, by showing that your country of residence is aware of the payout.

Pillar 3a withdrawals in your retirement plan

The best withdrawal order depends on all your capital: 3a accounts, pension fund, vested benefits and, for couples, both spouses' assets. In RetirePlan you set the withdrawal year for each account and immediately see the effect on tax and available wealth, free of charge and with as many scenarios as you like. The contribution side (2026 maximum: CHF 7,258) is covered in our pillar 3a limits guide.

If you would like a second opinion on your withdrawal plan, an optional expert analysis is available. The tool itself stays completely free.

Frequently asked questions

From what age can I withdraw my pillar 3a?

At the earliest five years before the AVS reference age, so from 60 with a reference age of 65. Earlier only to buy an owner-occupied home, to start self-employment, when leaving Switzerland for good, with a full IV pension, or to buy into your pension fund.

How much tax do I pay when withdrawing pillar 3a?

The payout is taxed separately from other income at a reduced but progressive rate. Depending on the canton and amount, the burden ranges roughly from 2% to over 10%. Withdrawals in the same year, including pension fund capital and your spouse's, are added together.

Can I withdraw part of my pillar 3a?

In principle no: a 3a account is paid out in full at regular withdrawal. To stagger, you need several accounts closed in different years.

Do I have to withdraw pillar 3a by 65 at the latest?

Yes, if you no longer work: by the reference age at the latest. If you keep working, you can defer the withdrawal until 70 and keep contributing.

Are pillar 3a and pension fund capital taxed together?

Yes, if they are paid out in the same tax year. The Confederation and cantons add up all pension capital paid in a year (and for both spouses), which raises the rate. That is why it pays to close 3a accounts in different years from your pension fund lump sum.

Can I cash out pillar 3a if I emigrate?

Yes. If you leave Switzerland for good, you can withdraw the whole balance, including when moving to the EU/EFTA. If you live abroad at payout, withholding tax is deducted, which can be reclaimed depending on the double taxation agreement.