Pillar 3a
Tax-advantaged private pension savings: contributions are deducted from taxable income, withdrawals are taxed separately at a reduced rate.
Employees with a pension fund can pay in up to a yearly maximum. The money is locked until five years before the AHV reference age, except for buying a home, starting a business or leaving Switzerland. Several accounts let you stagger withdrawals and lower the tax.
Tools that use it
Related terms
- Three pillarsThe Swiss pension system: AHV (state), BVG (occupational) and private savings (3a and 3b).
- Pillar 3bFree private savings and investments outside the pension system, with no lock-up and, in most cantons, no special tax break.
- Capital withdrawal taxThe separate, reduced tax on lump sums from the pension fund, vested benefits and Pillar 3a.
Read more
Swiss pensions
Pillar 3a for early retirees: tax saver now, bridge later
Pillar 3a cuts your tax bill while you work and becomes reachable five years before 65. How to use several accounts, when to withdraw and what the limits are.