Pillar 3: private pension provision

Pillar 3a

With pillar 3a, you can secure your retirement provision, enjoy tax advantages and use the capital before you retire to buy a home or start a business.

More about pillar 3a

Maximum amount in 2026

In Switzerland, you can pay a fixed maximum amount into pillar 3a annually, which you can deduct from your taxable income.

More about the maximum amount

Retirement calculator

If pillars 1 and 2 are not enough to maintain your standard of living in retirement, you will need to save more. Find out now how much you should put aside.

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The third pillar of the Swiss old-age pension system is for private pension provision and complements both state (pillar 1) and occupational pensions (pillar 2).

Pillar 3 improves your financial security in retirement through additional capital.
It is voluntary and complements the mandatory pension pillars 1 and 2.
Pillar 3 is divided into two categories: pillar 3a (restricted) and pillar 3b (unrestricted).

What is the difference between pillar 3a and pillar 3b?

Pillar 3a offers tax advantages and is intended for long-term retirement planning. Pillar 3b, on the other hand, offers more flexibility but no tax advantages.

An overview of all the differences between pillars 3a and 3b:

Characteristic / aspect / question	Characteristic / aspect / question	Pillar 3a	Pillar 3a	Pillar 3b	Pillar 3b
Characteristic / aspect / question	Who can build up retirement assets?	Pillar 3a	Anyone with an earned income subject to OASI contributions	Pillar 3b	All private individuals
Characteristic / aspect / question	What is the purpose of the retirement savings?	Pillar 3a	Private retirement savings	Pillar 3b	For all wishes and purposes
Characteristic / aspect / question	How much can be paid in?	Pillar 3a	A maximum amount applies: CHF 7,258 for people in paid employment, CHF 36,288 or a maximum of 20% of annual net income for the self-employed (as at [ubs:keyvalues key="pension.maxamountyear" type="content" section="global"])	Pillar 3b	No conditions
Characteristic / aspect / question	Are advance withdrawals permitted?	Pillar 3a	Only in exceptional cases, e.g. for financing owner-occupied residential property or starting your own business	Pillar 3b	No legal restrictions
Characteristic / aspect / question	When is the earliest possible withdrawal date?	Pillar 3a	You can withdraw assets no earlier than five years before the reference age or – if you remain in employment – no later than five years after this date	Pillar 3b	Depending on your needs
Characteristic / aspect / question	Are there tax advantages?	Pillar 3a	Payments up to the maximum amount can be deducted from taxable income	Pillar 3b	Limited tax advantages for life insurance policies

Invest in sustainable Vitainvest Investment Funds for higher yield opportunities.

Actively and passively managed investment funds for pillar 3 with broad diversification.
No minimum deposit – the investment amount is up to you.
All funds take sustainability criteria into account.

To the Vitainvest Investment funds

01
Define your risk profile
Answer just a few questions to find out which 3a pension solution suits you best.
02
Discover our recommendations
We propose different pension solutions, and you choose the one that suits you and the way you live your life.
03
Open your 3a pension solution
Open the 3a pension solution directly in the Mobile Banking App and choose how much and how often you would like to deposit for your future.

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Who can pay into pillar 3?

You can open a pillar 3a account in the following cases:

You are employed and contribute to pillar 2.
You are self-employed and not insured with an occupational benefits institution.
You live abroad but work in Switzerland.
You receive daily allowances as part of disability insurance subject to OASI contributions.
You receive a daily allowance from Swiss unemployment insurance.
You are partially disabled and have an income subject to OASI contributions.
You work beyond regular retirement age (up to five years after your 65th birthday).
You temporarily interrupt your gainful employment (e.g. due to civil or military service, unemployment or illness).

There are no special requirements for pillar 3b.

How good is my retirement plan?

To assess your financial situation, compare current expenditures with your expected income.

Do you need more money today than you’ll have after retirement? Then you need to act. You have several options to boost your income in retirement:

Make voluntary pension fund contributions.
Pay the maximum amount into pillar 3a.
Build up additional capital, for example, with a savings account or financial investment.

Why should I open a second retirement savings account?

You can withdraw money from pillar 3a up to five years before reaching OASI retirement age. However, taxes fall due when the savings are disbursed. The taxes increase progressively according to the amount disbursed.

If you have a second or even a third retirement savings account, you can withdraw your money in staggered amounts over several years. This lets you significantly reduce your tax burden.

A rule of thumb: if you’ve saved 50,000 francs in one retirement savings account, you should open a second retirement savings account.

How can I finance a home with retirement savings?

When buying a home, you may also use pension assets from pillar 2 and pillar 3 – provided you’ll be moving in yourself.

The following applies to financing: you need at least 20% of the purchase price as equity. No more than half of this can come from pillar 2.

With regard to both pillars, you have the following options:

Early withdrawal – which means the money will be taken from your retirement assets.
Pledge – your retirement assets only serve as collateral; your pension payments are not reduced.

I want to go abroad. What happens to my retirement savings?

Pillar 1

If you are not employed in Switzerland, you’re no longer covered by mandatory insurance. Accordingly, you also no longer pay any contributions. However, you’ll receive benefits in accordance with the contributions made and the number of years that you contributed. When you retire, or in case of invalidity or death, you’ll receive a reduced pension from OASI/DI.

Pillar 2

If you stop working in Switzerland, you lose the connection to a pension fund. Instead, the money must be transferred to a vested benefits account and will remain there until you take up a job in Switzerland again.

If you leave Switzerland permanently and move to a country outside the EU/EFTA, you can entirely withdraw the pension fund capital or park your money in a vested benefits account.

Pillar 3

If you leave Switzerland permanently, you can withdraw your savings from the restricted pension provision 3a without restriction.

I’ve started my first job. Should I already start saving for retirement?

The benefits from OASI and pension funds are not enough for the lifestyle you are used to. That’s why it’s so important you start making additional savings early.

Not only will payments into pillar 3a save on taxes, but you’ll also have more time to build up your savings. Saving even small amounts pays off.

Sample calculation: if you pay CHF 100 every month into a retirement account, you’ll have saved up roughly CHF 50,000 after 40 years, including interest.

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