Pillar 3a

Name: findependent
Brand: findependent
Rating: 4.8 (127 reviews)

For the pillar 3a (Säule 3a), the maximum contribution for 2026 remains at 7’258 francs and 36’288 francs (without pension fund).

Great news: Our pillar 3a foundation has just been founded. We’re now working full speed on the 3a investment solutions which will be launched in the 2nd half of the year. So you can definitely still make your first deposit with us in the 2026 tax year. We are super excited and will keep you updated.

In the meantime, you can invest your money in findependent’s unrestricted investment solutions, where you have complete flexibility in terms of contribution amount and withdrawal timing.

Pillar 3a

For the pillar 3a (Säule 3a), the maximum contribution for 2026 remains at 7’258 francs and 36’288 francs (without pension fund).

Great news: Our pillar 3a foundtation has just been launched!
We will keep you posted.

In the meantime, you can invest your money in findependent’s unrestricted investment solutions, where you have complete flexibility in terms of contribution amount and withdrawal timing.

Providing for retirement with pillar 3a

The AHV (OASI – Old-Age and Survivors’ Insurance) and pension fund (1st and 2nd pillar) are often not enough to maintain your usual standard of living in retirement. The pillar 3a can help fill this gap. For example, with pillar 3a, you can make tax-optimized contributions to a retirement solution during your working life.

Contributions to the pillar 3a remain “locked” until you reach retirement age. They can only be withdrawn in a few exceptional cases (e.g., mortgage repayment or emigration).

You can find out how worthwhile the investment is, especially in the long run, with our return calculator. Individually tailored to your situation.

Investment term

Start amount

Monthly deposit

Investment solution

Your advantage with findependent* CHF 0

* We calculate with 0.25% interest on the savings account and for the forecasts the past performance based on index data, minus management fee, custody fee and ETF costs since 2005 is used (net return). It is not a guarantee for the future market performance. The actual asset value achieved may differ significantly from the forecasts.

Pillar 3a account

Each contribution to the 3rd pillar first goes into your account with the pension foundation. There, it earns interest, usually at a slightly better rate than a regular savings account. However, even then, the interest rate is rarely, if ever, above 1% per year.

Pillar 3a investment

Earlier, we mentioned that the pillar 3a funds only become accessible at retirement. While this may seem like a disadvantage, it actually has a benefit: the investment horizon for these funds is generally very long-term. This makes pillar 3a funds well-suited for investing. Instead of simply leaving your retirement funds in the account, you can invest them in securities. However, the options are somewhat limited; for example, direct investments in individual stocks are not allowed. This is due to legal regulations aimed at maximizing the security of your retirement funds through broad diversification.

When choosing retirement funds within the pillar 3a, pay close attention to the annual fund costs, usually expressed as the TER (Total Expense Ratio). As a guideline: TER above 1% is too expensive, around 0.5% is just okay, and anything below 0.3% is good. You can learn more about findependent’s fees here.

Sometimes, banks or pension foundations charge a transaction fee (brokerage) for buying (or selling) funds. This is worth reconsidering; look for a provider with lower costs, as you can easily avoid such brokerage fees.

Pillar 3a investment

Earlier, we mentioned that the pillar 3a funds only become accessible at retirement. While this may seem like a disadvantage, it actually has a benefit: the investment horizon for these funds is generally very long-term. This makes pillar 3a funds well-suited for investing. Instead of simply leaving your retirement funds in the account, you can invest them in securities. However, the options are somewhat limited; for example, direct investments in individual stocks are not allowed. This is due to legal regulations aimed at maximizing the security of your retirement funds through broad diversification.

When choosing retirement funds within the pillar 3a, pay close attention to the annual fund costs, usually expressed as the TER (Total Expense Ratio). As a guideline: TER above 1% is too expensive, around 0.5% is just okay, and anything below 0.3% is good. You can learn more about findependent’s fees here.

Sometimes, banks or pension foundations charge a transaction fee (brokerage) for buying (or selling) funds. This is worth reconsidering; look for a provider with lower costs, as you can easily avoid such brokerage fees.

How much can I pay into the pillar 3a?

Contributing to the pillar 3a works just like depositing into a regular account. Your pension foundation provides you with an account number (IBAN) that you can use for your contributions. You can either deposit the maximum contribution in a single annual payment or contribute in smaller, regular installments—for example, by making monthly payments. A standing order is a convenient option so you don’t have to remember to initiate the payment each month in your bank’s e-banking system.

The annual contribution to the pillar 3a is limited to a maximum contribution of CHF 7,258. For those without an occupational pension, the limit is CHF 36,288, reflecting an increase of CHF 202 and CHF 1,008 respectively since the last adjustment in 2023.

The smaller pillar 3a limit applies to employees covered by an occupational pension, while the larger limit applies to self-employed individuals without BVG (Swiss occupational pension plan) coverage.

If you exceed the maximum contribution to your pillar 3a account, your pension foundation will contact you and refund the amount over the limit.

By the way, in private retirement savings (also known as pillar 3b), there is no contribution limit. Learn more about findependent’s investment solutions.

How much can I pay into the pillar 3a?

Contributing to the pillar 3a works just like depositing into a regular account. Your pension foundation provides you with an account number (IBAN) that you can use for your contributions. You can either deposit the maximum contribution in a single annual payment or contribute in smaller, regular installments—for example, by making monthly payments. A standing order is a convenient option so you don’t have to remember to initiate the payment each month in your bank’s e-banking system.

The annual contribution to the pillar 3a is limited to a maximum contribution of CHF 7,258. For those without an occupational pension, the limit is CHF 36,288, reflecting an increase of CHF 202 and CHF 1,008 respectively since the last adjustment in 2023.

The smaller pillar 3a limit applies to employees covered by an occupational pension, while the larger limit applies to self-employed individuals without BVG (Swiss occupational pension plan) coverage.

If you exceed the maximum contribution to your pillar 3a account, your pension foundation will contact you and refund the amount over the limit.

By the way, in private retirement savings (also known as pillar 3b), there is no contribution limit. Learn more about findependent’s investment solutions.

Pillar 3a transfer

If you already have a pillar 3a account, you can easily transfer the balance to another pension foundation. To close the existing account, the pension foundation simply needs confirmation that the new account is also a pillar 3a account. You can obtain such confirmation from your new pension foundation.

If you have a Pillar 3a savings account and have also made investments in securities under the Pillar 3a framework, you can nonetheless proceed with the transfer. In this case, you will need to sell the investment funds at the old provider and transfer the cash equivalent in Swiss francs to the new account. Even if the old funds are currently trading below their purchase price, this should not deter you from making the transfer. It is crucial to promptly reinvest your retirement savings in securities at the new provider as well. This way, you can benefit from future market recovery and maintain your long-term investment horizon.

Several pillar 3a accounts

Depending on the canton in which you are liable for taxes, it may be beneficial to have more than one Pillar 3a account. This way, you can withdraw from different accounts in the years around your retirement, optimizing your tax burden.

For example, if you have two Pillar 3a accounts with CHF 80,000 each instead of one with CHF 160,000, you can withdraw from both accounts in two different tax years, at ages 62 and 64. This allows you to break the tax progression and save on taxes.

Several pillar 3a accounts

Depending on the canton in which you are liable for taxes, it may be beneficial to have more than one Pillar 3a account. This way, you can withdraw from different accounts in the years around your retirement, optimizing your tax burden.

For example, if you have two Pillar 3a accounts with CHF 80,000 each instead of one with CHF 160,000, you can withdraw from both accounts in two different tax years, at ages 62 and 64. This allows you to break the tax progression and save on taxes.

Early withdrawal pillar 3a

You can withdraw your pillar 3a funds at the earliest five years before reaching the regular AHV retirement age, or for one of the following reasons:

You purchase a residential property
It’s important that the house or apartment is owner-occupied. It doesn’t matter whether you use the pillar 3a funds for the purchase or for repaying the mortgage.
You make additional contributions to your pension fund. This must be done through a voluntary top-up.
You receive a disability pension.
You become self-employed.
You leave Switzerland permanently. You must deregister from Switzerland and provide written proof of this.
Upon your death, the balance of your pillar 3a account will go to your legal heirs (unless otherwise instructed).

Postpone pillar 3a withdrawal

You can also postpone the withdrawal of your pillar 3a funds, but only for a maximum of five years beyond your 65th birthday. The key requirement is that you continue to be employed.

Home Ownership Financing with Pillar 3a

The most common reason for early withdrawal of Pillar 3a funds is the purchase or repayment of home ownership. However, this is only possible for a property that you use as your primary residence; it is referred to as owner-occupied property.

Therefore, using Pillar 3a funds for a vacation home in the Canary Islands, a holiday apartment in the mountains, or a condominium that you plan to rent out is not permitted.

Home Ownership Financing with Pillar 3a

The most common reason for early withdrawal of Pillar 3a funds is the purchase or repayment of home ownership. However, this is only possible for a property that you use as your primary residence; it is referred to as owner-occupied property.

Therefore, using Pillar 3a funds for a vacation home in the Canary Islands, a holiday apartment in the mountains, or a condominium that you plan to rent out is not permitted.

Tax benefit pillar 3a

All contributions to the pillar 3a can be deducted from your taxable income on your tax return, thereby reducing your tax bill. The amount of your savings depends on your marginal tax rate. For example, if your marginal tax rate is 20%, a contribution of CHF 5,000 to the pillar 3a will reduce your tax bill by CHF 1,000 (20% of CHF 5,000).

Additionally, you do not pay income tax on the earnings generated by the pillar 3a.

What does ‘earnings’ refer to? If your money is in a pillar 3a savings account, it refers to the interest payments made at the end of the year. If you have invested your pillar 3a in securities, the earnings are approximately 1.5% per year (dividends and interest from the securities).

Taxation of pillar 3a withdrawals

When you withdraw from the pillar 3a, taxes are applied. The withdrawal amount is taxed separately from your other income at a reduced rate.

The amount of tax varies significantly depending on the canton and the amount of the pension benefit, typically ranging from a few percent of the withdrawal amount.

You not only have to tax the amount you contributed, but the entire withdrawal amount. This means, for example, if you contributed a total of CHF 60,000 over 10 years (and thus could deduct CHF 6,000 from your taxes each year), and then invested the CHF 60,000 in securities, which grew to CHF 90,000 due to returns, you will be taxed on the full CHF 90,000—both the CHF 60,000 you contributed and the CHF 30,000 in gains.

Generally, you can expect that the tax benefit you gained over the 10 years will be reduced by 10-15% because of this. However, this is still not a reason to avoid contributing to the pillar 3a.

Advantage:

Deposit fully deductible from taxable income
No wealth tax
No income tax on interest and earnings

Disadvantage:

Taxation upon withdrawal
Value growth over time must also be taxed

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