Pillar 3a in Switzerland: how to open and max it this year
To use pillar 3a this year, open at least one 3a account before 31 December and transfer up to CHF 7,258 (employee with a 2nd pillar) or CHF 36,288 (self-employed without a 2nd pillar, capped at 20% of net income) as of 2025. The contribution is fully deductible from federal and cantonal income tax in the year it is paid.
Overview
Pillar 3a is the single highest-leverage tax move available to most Swiss residents - it cuts your tax bill immediately and compounds tax-free until withdrawal. The decision is not whether to use it but how to structure it: which provider, bank vs fund, one account or several.
Setting up and funding 3a this year
- 1
Confirm your cap
Employee with 2nd pillar: CHF 7,258 in 2025. Self-employed without 2nd pillar: 20% of net self-employment income, max CHF 36,288. Contribute by 31 December - the deadline is hard and not extendable.
- 2
Choose bank vs fund 3a
Bank 3a pays near-zero interest but is capital-guaranteed. Fund (securities) 3a invests in ETF-based portfolios at TER 0.4-0.9% - historically delivers 4-6% p.a. over a full cycle. For horizons of 10+ years, fund 3a usually beats bank 3a even after fees.
- 3
Pick a low-cost provider
VIAC, finpension, Frankly and Truewealth lead on cost (TER 0.39-0.48% as of 2025, no account fee). Traditional banks (UBS, CS/UBS, Raiffeisen) charge 0.9-1.5% TER for similar exposure.
- 4
Split into 3-5 accounts
Open several 3a accounts (one per year of planned withdrawal). At retirement you can stagger withdrawals across tax years, cutting the one-off withdrawal tax materially. Some cantons cap the benefit if all accounts are at the same provider.
- 5
Set up monthly standing order
Spread CHF 605/month rather than a December lump sum - smoothing into a fund portfolio averages the entry price and removes the year-end scramble.
- 6
Keep the certificate for your tax filing
Each provider issues an annual 3a tax certificate (Bescheinigung). Attach it to your tax return or NOV adjustment to claim the deduction.
Frequently asked questions
Can B-permit holders use pillar 3a?+
Yes - any Swiss resident with AHV-liable earned income can contribute. B-permit holders taxed at source claim the deduction via a tax-rate adjustment (Tarifkorrektur) or NOV filed by 31 March of the following year.
How much tax does pillar 3a save?+
Roughly your marginal tax rate. At CHF 100,000 income in Zurich, a CHF 7,258 contribution saves around CHF 1,800-2,200 in federal + cantonal + communal tax. In high-tax cantons the saving can exceed 35%.
When can I withdraw pillar 3a?+
From 5 years before AHV retirement age, or earlier in defined cases: buying owner-occupied property, becoming self-employed, leaving Switzerland permanently, or full disability. Withdrawal is taxed separately at a reduced one-off rate.
Is fund 3a really better than bank 3a?+
Over 10+ years almost always yes - the equity premium has historically swamped the small extra fee. For horizons under 5 years or if you'll need the money for a property purchase soon, bank 3a or a low-equity fund is safer.