Pillar 3a tax benefits and tips

Save on tax with pillar 3a

Tax benefits

  • Save tax each year:
    By paying into your pillar 3a, you can save several thousand francs on tax every year, depending on the amount paid in and on your place of residence.
  • Tax-free interest
  • Tax-free capital
  • Favourable tax rate on withdrawals:
    Any pension assets that are paid out are taxed separately from other income. This prevents pension benefits from being added to your annual income, which in turn might cause your income tax to go up to a higher tax rate (progressive taxation).
  • Tax advantages for multiple parallel pension plans:
    To achieve a lower tax rate, it might be advisable to withdraw your pillar 3a savings over the course of several years. Since you are not allowed to withdraw only part of the savings from a third-pillar account, it is a good idea to take out multiple parallel third-pillar plans.
  • Tax relief on payments into the third pillar :
    Payments into your pillar 3a are fully deductible from your taxable income up to the maximum annual contribution as set by law. Here you can calculate how much you can save on tax by paying into your third pillar.