Pillar 3a: restricted pension
You can use pillar 3a to improve your financial situation in old age and cut your tax bill at the same time. Comparis explains the ins and outs of restricted pension plans and shares tips on how to save on tax.
Key information on pillar 3a
Pillar 3a is a voluntary private pension plan and is one component of the third pillar. It is also referred to as a restricted pension plan. It is subject to certain statutory conditions.
The maximum amount in 2025 is CHF 7,258 for employees and CHF 36,288 for self-employed persons.
Because you can deduct payments into your 3a plan from taxable income that is subject to social security contributions, this is a good way to save on tax.
When it's time to access the money, you can reduce the tax due on the payout by staggering withdrawals from multiple 3a savings or investment accounts.
You can also take out third pillar plans in the form of a life insurance policy.
Various rules apply to the withdrawal of pillar 3a savings. Advance withdrawals are possible, for example, to finance residential property.
Comparis tip: compare a range of 3a account types and providers.
It's a good idea to start thinking about investing in the third pillar as early as you can.
Aims of pillar 3a: save money and provide for retirement
Pillar 3a is suitable for making up pension shortfalls with your private savings and/or for providing you and your family with financial protection. Pillar 3a can also help you reduce your tax bill.
Pillar 3a compared: savings and investment accounts, insurance and apps
There are various pillar 3a products to choose from. These include bank accounts, investment accounts and 3a insurance products. Pillar 3a products are now increasingly available in app format. Comparis compares various providers and 3a products.
Paying in to pillar 3a
Annual contributions to pillar 3a can be deducted from your taxable income. The more you pay in, the greater your tax savings. Remember, however, that a maximum applies.
FAQs on pillar 3a
In the short term:
You can deduct pillar 3a contributions up to the maximum set amount from your taxable income – and your pillar 3a deposits are exempt from wealth tax. Pillar 3a therefore helps you to reduce your annual tax bill. You can use our tax calculator to find out how much you could save.
In the mid term:
You can use money from pillar 3a to buy residential property.
In the long term:
Pillar 3a increases your pension and makes up any income shortfalls.
Since preferential interest rates are applied to pillar 3a accounts, it is worth paying in early in the year. That way you will benefit from a whole year's interest. Compare current interest rates here.
In 2025, the maximum contribution is 7,258 francs for employees and 36,288 francs for self-employed people.
Yes, this is the main benefit of pillar 3a. You can deduct pillar 3a contributions up to the maximum amount of 7,258 francs (in 2025) from your taxable income. Your 3a savings are also exempt from wealth tax. Pillar 3a therefore enables you to reduce your annual tax bill and save a considerable amount of money. Use our tax calculator to work out how much you can save.
A retirement savings account allows tax-privileged saving. The money is deposited with a pension foundation in either a savings account or an investment account that includes securities (stocks, funds, bonds). Pillar 3a investment accounts are available from banks and insurance companies. Unlike 3a savings accounts, some of the money is invested in securities (stocks, funds, bonds). Savings or investment account?
It's a good idea to start thinking about investing in the third pillar as early as you can. Building up a solid savings cushion is crucial for determining how much financial freedom you will have in retirement.
It’s never too early to save
If you invest 150 francs per month in a pillar 3a investment account starting from the age of 25, you will have paid in a net amount of 72,000 francs by the age of 65. However, assuming an average return of 3% each year, these assets will grow to 138,909 francs during this time. If you start paying in 200 francs per month at the age of 35, you will have put aside the same amount by the age of 65. However, assuming the same return of 3%, you will only have accumulated 116,547 francs all together. This is 22,362 francs less.
Here you can find information about the providers of pillar 3a products. It is divided into product details, bank information and forum posts. View list of pillar 3a providers.
Savers can transfer their money from one pension foundation to another, provided they transfer the total account balance. It can make good financial sense to do so. This is because the interest rates on pension accounts vary from one provider to another. The transfer of funds is usually free of charge.
It is possible to transfer the assets of a pillar 3a account to a different provider or to convert it into a different third pillar product. Most providers do not require you to give notice. However, the money must remain in the 3a system and may not be transferred to a traditional bank account.
For this reason, customers are required to provide confirmation from their new provider showing the previous provider that the money will remain within the 3a system. In addition, the assets must be transferred in their entirety. Note that although banks will allow you to transfer your pillar 3a account in this way, insurance companies will not.
Payout and advance withdrawal of pillar 3a
While there are exceptions, the savings in pillar 3a may generally be withdrawn no earlier than five years before statutory retirement age. Comparis explains what you should bear in mind.
