| Pillar 3a | Pillar 3b | |
|---|---|---|
| Also known as | Tied pension provision | Unrestricted pension provision |
| Annual contribution limit | CHF 7,258 (employees); CHF 36,288 (self-employed without pension fund) | No limit |
| Tax deduction on contributions | Yes — fully deductible from taxable income | No |
| Wealth tax during savings phase | Exempt | Taxable each year |
| Tax on withdrawal | Taxed separately at a reduced rate (typically 5–10%) | Generally tax-free |
| When can you withdraw? | At retirement (age 60–65) or specific early withdrawal reasons | Any time, for any reason |
| Who can contribute? | Must have AHV-liable income in Switzerland | Anyone — no income requirement |
| Beneficiary choice | Restricted — legal order of succession applies | Freely chosen |
2026 limit — employees
CHF 7,258
With a pension fund (2nd pillar). Deadline: 31 December 2026.
2026 limit — self-employed
CHF 36,288
Without a pension fund, or 20% of net income — whichever is lower.
Start here
Prioritise Pillar 3a first
If you have AHV-liable income and are not using your full 3a allowance, this should come first. The tax deduction is immediate and guaranteed — there is no equivalent benefit anywhere else in the Swiss system.
Once 3a is maxed
Then consider Pillar 3b
If you have savings beyond the 3a limit, or want accessible reserves you can reach without restrictions, Pillar 3b makes sense. It is particularly useful for medium-term goals — a home purchase, a career break, or a financial buffer.
Expats
3a is usually better for expats
If you plan to leave Switzerland, you can withdraw your full 3a balance on permanent departure. This means you take the tax savings with you. Pillar 3b offers no equivalent guarantee — insurance-based 3b products in particular can carry surrender charges if you exit early.
No income
3b if you have no AHV income
If you are not earning AHV-liable income — for example during a career break, parental leave, or if you are a non-working partner — you cannot contribute to Pillar 3a. Pillar 3b remains open to you regardless.