What is a 3rd Pillar A?
Introduced into the Constitution in 1972, Pillar 3a represents the tied individual pension plan. It is characterized by its favorable tax framework and has the primary goal of preparing for retirement. This private pension scheme is a voluntary savings plan that complements the first two pillars (AVS and pension fund) and, in exchange for tax deductions, comes with restrictions on withdrawals. The accumulated funds can only be accessed in cases of retirement, disability, death, or the purchase of a first home — under certain conditions.
Who can open a linked pension account?
Opening a Pillar 3a account is available to anyone residing in Switzerland, whether employed or self-employed, but you must engage in a gainful activity and therefore earn a income subject to AVS. Pillar 3a is also available to cross-border workers.
Possible shapes
There are a multitude of possibilities for the form of a 3A pillar. There are two main categories: the pillar 3A in banking and pillar 3A in insurance.
At the bank
In insurance
Contribution limits
In 2025, it will be possible to pay out the following amounts in tied personal pension plans:
- Employees affiliated to a pension fund: Up to CHF 7,258 / year
- Self-employed or employees not affiliated to a pension fund: 20% of income, maximum CHF 36,288
Under what conditions can I make a withdrawal?
The conditions for early withdrawal from the 3rd Pillar A are strictly defined to ensure that savings remain earmarked for pension provision and retirement. Here is a breakdown of the various situations in which it is possible to make an early withdrawal, either in part or in full:
1. Retirement age
Retirement benefits can be paid out as early as 5 years before the insured person reaches the standard AVS retirement age (“reference age”), and at the latest five years after.
2. Purchase of 2nd pillar contributions
Early withdrawal is permitted when the Pillar 3a savings are used to buy back contributions into a second-pillar pension institution. This option allows you to supplement or regularize your occupational pension capital in case of gaps.
3. When receiving a full DI/IV pension
If the client receives a full disability pension from the IV and the risk of disability is not covered by the pension plan, the early withdrawal can be activated.
4. Change of self-employed activity
Early withdrawal is also possible for the policyholder who changes to a new self-employed activity. This allows access to the necessary liquidity to support their professional transition.
5. Starting a self-employed business
If the pension fund member sets up their own business, they can apply for early withdrawal. The aim is to provide financial support when starting a self-employed or entrepreneurial activity, which is often crucial in the early stages of setting up a business.
6. Final departure from Switzerland
If the pension fund member leaves Switzerland permanently, they may make an early withdrawal of their funds. This provision is intended to allow the insured person to access their savings when they move abroad, outside the EU/EFTA.
7. Home purchase or mortgage repayment
Early withdrawal is also possible when the funds are used to purchase a home for one's own needs or to repay mortgage loans. This condition facilitates home ownership by allowing insured persons to use their savings in a practical way for a real estate project.
What are the tax benefits of Pillar 3a?
The contributions paid are deductible of taxable income, thereby reducing annual taxation. What's more, on withdrawal, the capital is taxed at a reduced rate of 1/5th of the tax.
Furthermore, during the term of the contract, no wealth tax will be levied, allowing capital to grow without additional costs.
How many 3a accounts can I have?
There is no no legal limit as to the number of 3a accounts you can hold, however, some cantons impose limits. In practice, you can open several accounts, such as a bank account and a life insurance policy.
However, the annual contribution ceiling remains the same and applies to the total of all your payments, which means that the total amount deposited cannot exceed the ceiling set by law.
New: 3a redemptions
In 2026, it will be possible to make subsequent 3rd pillar A purchases for the 2025 tax year of CHF 7,258 (ceiling).
Pillar 3a vs. 3b: which to choose?
Pillar 3a is a linked retirement savings plan offering significant tax deductions. Funds are locked in and can only be withdrawn in specific circumstances (retirement, purchase of a home, disability, permanent departure from Switzerland).
Pillar 3b, on the other hand, is a more flexible supplementary savings option, without strict usage constraints. Although it benefits from fewer tax advantages, it allows you to freely dispose of your funds for various projects. In short, making the difference between a 3a and a 3b relies mainly on flexibility as well as the tax deductions to be leveraged.
Frequently asked questions
Pillar 3a is a form of tied individual pension provision in Switzerland. It allows you to save for retirement while benefiting from tax advantages. It is subject to strict conditions regarding beneficiaries, amounts paid in, and withdrawal possibilities.
Anyone who exercises a gainful activity in Switzerland and pays contributions to the AVS can contribute to pillar 3a. This includes:
- Employees,
- Cross-border commuters,
- Independents,
- Unemployed persons under certain conditions.
Pillar 3a allows :
- To supplement AHV and BVG pensions,
- Reduce taxable income (thanks to tax deductions),
- To finance a real estate project or a transition to independence.
Yes, but at a reduced rate at 1/5 of the tax rate, separately from the rest of the income.
You must make Pillar 3a payments no later than December 31 to be tax deductible in the current year.
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