Retirement in Switzerland rests on three pillars. Many people know the first, can guess the second and overlook the third. Yet it is the one you control.
- 1st pillar (AVS/AI): state pension (AVS) and disability insurance (AI). Compulsory, it covers basic needs.
- 2nd pillar (LPP): occupational pension, paid into your employer’s pension fund, to maintain your standard of living.
- Third pillar: your personal, voluntary savings, to close the gap.
Together, the first two pillars often replace much less than your last salary. The third pillar is there to fill that difference.
Pillar 3a, the tax advantage
Payments into a restricted third pillar (pillar 3a) are deductible from your taxable income. In 2026, the limit is CHF 7,258 if you are a member of a pension fund. Without a second pillar, for example if you are self-employed, you can pay in up to 20% of your income, up to a maximum of CHF 36,288 (Federal Social Insurance Office, FSIO). For 2027, these limits rise to CHF 7,373 and CHF 36,864 (FSIO, 2 October 2026).
| Pillar 3a limit | 2026 | 2027 |
|---|---|---|
| With a pension fund | CHF 7,258 | CHF 7,373 |
| Without a pension fund | 20% of earned income, up to CHF 36,288 | 20% of earned income, up to CHF 36,864 |
The 2027 limits apply from 1 January 2027. For your 2026 payments, the 2026 limits still apply (FSIO, 2 October 2026).
Bank or insurance?
Both exist, and neither is better for everyone.
- Bank pillar 3a: flexible payments, often low fees; you can stop or reduce your payments whenever you like.
- Insurance pillar 3a: includes cover in the event of disability or death, and can keep paying in for you if you are no longer able to work. In return, you commit for the long term, and cancelling early is costly.
The right choice depends on your family, your income and the protection you already have.
When can you withdraw your pillar 3a?
In principle from 5 years before retirement age, or earlier to purchase your main home, to become self-employed or to leave Switzerland for good.
The deadline not to miss
Your payment must be credited to your pillar 3a account by 31 December at the latest to count for that tax year (FSIO).
Sources
