Säule 3a
The tied private pension — the third pillar. Contributions are deductible from taxable income up to an annual maximum amount, and the savings are locked until retirement. One of the most effective legal ways for private individuals to save on taxes.
Pillar 3a (Säule 3a) is Switzerland's tied private pension — the voluntary, tax-privileged part of the three-pillar system. Contributions are fully deductible from taxable income up to an annual cap, and the savings are locked until shortly before retirement, with only limited early-withdrawal grounds such as buying a home or becoming self-employed. For 2024 employees with a pension fund could pay in up to CHF 7'056 per year.
Example: An employee pays the maximum CHF 7'056 into her pillar 3a account in 2024. She deducts the full amount on her tax return, lowering her taxable income, and the savings grow until she draws them between five years before and at the latest at the reference retirement age.
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How much can I pay into pillar 3a in 2024?
Employees who are members of a pension fund can contribute up to CHF 7'056 per year. People without a pension fund (e.g. many self-employed) may pay in up to 20% of net earned income, capped at a higher amount.
When can I withdraw my pillar 3a savings?
Normally from five years before the reference retirement age. Earlier withdrawal is allowed only on specific grounds — buying owner-occupied property, starting self-employment, leaving Switzerland permanently, or buying into a pension fund.