CHF 7,258
With pension fund (LPP). Uniform cap regardless of income.
3rd pillar
Pillar 3 in 2026: up to CHF 7,258 tax-deductible per year
Pillar 3a, 3b, bank or insurance — zero jargon, we compute your tax saving, we pick together.
2026 caps
Maximum tax-deductible amounts this year.
CHF 36,288
20% of net AVS income, capped at 36,288 CHF. The strongest tax lever in Switzerland.
1,800-2,500 CHF
Depending on your canton and marginal bracket. We compute it with you in the review.
3a vs 3b — the key difference
Two regimes, two purposes.
| Pillar 3a | Pillar 3b | |
|---|---|---|
| Type | Tied pension | Free pension |
| Annual cap | 7,258 CHF (employees) | None |
| Tax-deductible | ✓ Fully | ✗ No (with cantonal exceptions) |
| Early withdrawal | Strict conditions | Anytime |
| Ideal for | Cut tax, fund retirement | Free savings, estate planning |
Why open a 3rd pillar?
Direct tax reduction
Every CHF contributed is deducted from taxable income.
Supplement your retirement
AVS + LPP cover 60-70% of last salary; pillar 3 fills the gap.
Real-estate financing
Withdrawal allowed to buy your principal residence.
Death / disability cover
Optional via the insurance route — capital secured for your loved ones.
The process, in 5 steps
- 1
Define your goals
Retirement, real estate, financial independence? Strategy follows the goal.
- 2
Pick the right vehicle
Bank (securities, ETFs) for flexibility, or insurance for built-in protection.
- 3
Open and fund
Monthly, quarterly or yearly. Better small and regular than nothing.
- 4
Optimise taxes
Deduction at cantonal AND federal level. Timing of contributions matters too.
- 5
Monitor and adjust
We review the strategy together every 12-18 months.
Bank or insurance?
Both options have strengths. Here is what really separates them.
3a account / fund (bank)
- Low fees (0.4-1.5%)
- Full contribution flexibility
- High potential return (equity funds)
- No long-term commitment
- No death / disability cover
- No capital guarantee
- Requires self-discipline
Best if you are flexible and autonomous.
3a policy (insurance)
- Death / disability cover included
- Minimum capital guarantee
- Forced contributions (discipline)
- Inheritance advantages
- Higher fees (1.5-3%)
- Long-term commitment (often 20+ years)
- Penalties on early exit
- Lower average performance
Best if you need protection and discipline.
Frequently asked questions
Who can open a pillar 3?
Any Swiss resident with income subject to AVS (employee or self-employed). No need to be a Swiss citizen — B/C/G/L permits qualify.
When can I withdraw from 3a?
5 years before official AVS age, to buy your main residence, on definitive departure from Switzerland, or to start a self-employed activity.
One big account or several small ones?
Several small ones (ideally 4-5) — to stagger withdrawals across tax years and minimise exit tax. A trick that few people know and that can save thousands.
What return can I expect?
Standard 3a account: 0.1-0.5%/year. 3a equity fund: 4-7% historical over 15+ years. The right profile depends on your horizon: 15+ years = equities, <5 years = cash account.
Can I have a 3a as a cross-border worker or expat?
Cross-border workers taxed at source: yes in most cantons. Expats: only if you pay Swiss AVS. We check case by case.
Ready to take stock?
A 30-minute review, zero commitment. You leave with a written report and a clear plan.