In this article
Key points
- The Swiss pension system rests on three pillars: state, occupational and private provision.
- The third pillar is divided into tied pension provision (3a), which offers tax advantages, and flexible pension provision (3b).
- In 2024, an employee affiliated with a pension fund could deduct up to CHF 7,056 from taxable income.
- Combining 3a and 3b lets you build a strategy tailored to you.
The Swiss pension system rests on three pillars: state pension provision, occupational pension provision and private pension provision.
The third pillar is optional, yet it is becoming increasingly essential to secure a comfortable future after retirement.
The third pillar: pillar 3a and pillar 3b
The third pillar is divided into two categories:
Pillar 3a and pillar 3b
Table 1| Pillar 3a · tied pension provision | Pillar 3b · flexible pension provision | |
|---|---|---|
| Tax advantage | Contributions deductible from taxable income | Depends on the product and the canton |
| Access to funds | From five years before the reference age, or in the cases provided for by the BVV 3/OPP 3 | Unrestricted |
| Main strength | Tax savings and retirement savings | Flexibility, according to personal needs |
Who should consider pillar 3a?
Pillar 3a suits anyone who wants to reduce the tax on their income subject to OASI contributions while building solid savings for retirement.
Making the most of the advantages
How much you can deduct depends on whether you are affiliated with a pension fund:
Deductible pillar 3a contributions in 2024
Table 2| Situation | Maximum amount |
|---|---|
| Employee affiliated with a pension fund | CHF 7,056 |
| Self-employed person without a pension fund, or income below the BVG/LPP entry threshold (CHF 22,050) | 20% of net earned income, up to CHF 35,280 |
When the funds are paid out, the capital is taxed separately from other income, at a reduced rate. Spread your investments across several pillar 3a accounts and stagger your withdrawals strategically to optimise your tax burden.
Pillar 3b for greater flexibility
Pillar 3b offers more flexibility and completes your pension strategy according to your own needs.
Combining pillar 3a and pillar 3b opens up a wide range of solutions to the many challenges of pension planning.
Lorena Respini, Assidu
Conclusion
Ask our advisers and specialists for a tailored pension analysis: make the most of the three pillars of the Swiss pension system and secure a solid, comfortable financial future.
Member of Management · Insurance Specialist with Federal Diploma of Higher Education · Social Insurance Specialist with Federal Diploma of Higher Education
