Switzerland · Pensions
Swiss pillar 3a explained: limits, tax savings and rules for expats
Pillar 3a is a private pension account with a big tax break. In 2026 employees with a pension fund can pay in up to CHF 7,258 and deduct all of it from taxable income. In Zurich that saves a single person on CHF 100,000 about CHF 1,580 a year in tax.
The three pillars
- Pillar 1: the state pension (AHV), funded by payroll contributions.
- Pillar 2: your employer's pension fund (BVG), also deducted from salary.
- Pillar 3a: voluntary, tax-deductible private savings, at a bank or insurer.
2026 limits
| You are… | Maximum contribution |
|---|---|
| Employed with a pension fund | CHF 7,258 |
| Self-employed without a pension fund | 20% of net work income, up to CHF 36,288 |
You must have AHV-liable work income in Switzerland to contribute. Since 2025 you can also make up missed contributions from earlier years, starting with gaps from 2025.
How much tax you save in Zurich
| Gross salary | Tax saved with CHF 7,258 in pillar 3a |
|---|---|
| CHF 80,000 | about CHF 1,360 |
| CHF 100,000 | about CHF 1,580 |
| CHF 150,000 | about CHF 2,170 |
Single, city of Zurich, no church tax, 2026 rules. You save more in high-tax places and with higher income.
If you pay tax at source and earn under CHF 120,000, you need to request a tax return (subsequent ordinary assessment) to claim the deduction. Once you do, you must file every year.
Bank account or invested?
A pillar 3a can be a savings account with a small interest rate or a fund portfolio. Over 20 or 30 years, an equity fund has historically grown more, but its value can fall. Fees matter: compare the total yearly cost of different providers.
Getting the money out
- Normally from five years before AHV pension age (from 60 for most people), and at the latest five years after it.
- Earlier to buy a home you will live in, to start a business, or if you leave Switzerland for good.
- Withdrawals are taxed once, separately from your other income and at a reduced rate. Splitting your savings across several 3a accounts and withdrawing them in different years lowers the tax.
Leaving Switzerland
If you move abroad permanently you can withdraw your pillar 3a. The withdrawal is taxed at source by the canton where the provider is based. A tax treaty may let you reclaim part of it, depending on where you move. Pillar 2 rules are stricter if you move to an EU or EFTA country.
See how regular saving grows →
Sources
This guide is general information based on the tax rules we could verify for 2026, not tax or financial advice. Rules change and personal situations differ, so check with the tax authority or a qualified adviser before you act. Spotted a mistake? Email [email protected].