Tax glossary
Pillar 3a
Pillar 3a is the tax-advantaged, tied private pension scheme: contributions up to the annual maximum are fully deductible from taxable income — for 2026 that is CHF 7,258 if you have a pension fund.
Pillar 3a is the tied private pension within Switzerland's three-pillar system. ‘Tied’ means the money is locked in until no earlier than five years before the statutory AHV retirement age, except in cases defined by law. In return, you may deduct the full amount you pay in from your taxable income.
For the 2026 tax period, the maximum contribution is CHF 7,258 for employed people who belong to a pension fund. Anyone without a pension fund — typically the self-employed — may pay in 20 per cent of their earned income, up to a maximum of CHF 36,288.
The deduction applies in the year the payment is made — what counts is the date the pension provider credits it, not the date of your payment order. A payment made on 30 December that is only credited on 2 January counts towards the new year.
How much tax you actually save
Your saving equals the amount paid in multiplied by your marginal tax rate — the rate at which the top slice of your income is taxed. In Winterthur, the marginal rate for middle incomes, including federal tax, typically lies between 20 and 30 per cent.
With a full contribution of CHF 7,258 and a marginal rate of 25 per cent, you save around CHF 1,815 in tax — every year. Forget to pay in, and that amount is simply gone: back-payments for past years are not possible in Pillar 3a.
Withdrawal and taxation
When the money is paid out, it is taxed separately from your other income at a reduced pension rate. If several accounts are withdrawn in the same calendar year, the tax office adds them together to determine the rate — and progression increases.
That is why staggering pays off: spreading your pension savings across several 3a accounts and withdrawing them in different years noticeably reduces the withdrawal tax. For married couples, both partners' withdrawals in the same year are also added together.
- At the earliest five years before the statutory AHV retirement age
- Early withdrawal to buy a home for your own use
- Early withdrawal when starting self-employment
- Early withdrawal when leaving Switzerland permanently
- Early withdrawal to buy into a pension fund
Back-payments since 2025
Since 2025, back-payments into Pillar 3a are possible for contribution years from 2025 onwards if less than the maximum was paid in during a given year. The gap can be closed within ten years, provided the full regular contribution has first been made in the year of the back-payment. This does not apply to gaps from before 2025.
Example: paying in December rather than January
An employee in Winterthur has for years paid CHF 7,258 into her Pillar 3a every December. At a marginal rate of around 24 per cent, she saves roughly CHF 1,740 in tax each year.
Paying in January instead secures the same deduction — but gives eleven more months of interest or market exposure. Over a working life of 30 years, this seemingly minor shift adds up to several tens of thousands of francs in final capital.
Frequently asked questions: Pillar 3a
Can I make back-payments for previous years?
For contribution years from 2025 onwards, yes — within ten years and only if the full regular contribution has first been made in the year of the back-payment. Gaps from before 2025 cannot be filled.
Is it worth having several 3a accounts?
Yes, so you can stagger your withdrawals. Withdrawals in the same year are added together to determine the rate; spread over several years, the withdrawal tax is lower.
I work part-time — how much can I pay in?
As long as you belong to a pension fund, the full amount of CHF 7,258 applies, regardless of your workload. Without a pension fund, the limit is 20 per cent of your earned income.
Does the certificate or the account statement count?
Your pension provider issues a tax certificate every year. This is the document to enclose with your tax return — an account statement is not sufficient.
Related terms
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