Pillar 3a

Tax saving


The pillar 3a offers tax privileges that are regulated by law:

  • Tax deductions for 3rd-pillar payments
  • Tax-free interest yield
  • Tax-free capital
  • Tax advantages in case of several parallel pension plans

 

  • Tax deductions for 3rd-pillar payments
    Payments into a pillar 3a account are tax-deductible within the scope of the maximum contributions specified by law. For this, you need to fill in the corresponding field in your tax return and include a confirmation of payment from your bank or insurance company.
    Learn more about the maximum contributions.
  • Tax-free interest yield
    Interest earnings from pension accounts are exempt from taxation. This applies both to traditional 3rd-pillar savings accounts and to pension funds and pension policies.

  • Tax-free capital
    The savings on a pension account are exempt from taxation. Once a pillar 3a account balance is paid out, however, it is subject to income tax. This is why a bank or insurance company generally reports every withdrawal or advance withdrawal to the Swiss Federal Tax Administration.
  • Fiscal advantages in case of several parallel pension plans
    It is recommended to hold several parallel 3rd-pillar products and distribute one's savings evenly. Since retirement savings may be paid out up to five years before the regular retirement age, it is possible to make several withdrawals in different fiscal years and thus avoid excessive progressive taxation. It is not permitted to withdraw only part of the savings on a 3rd-pillar account.