Swiss Pensions – 3rd Pillar

3rd Pillar Swiss Pension Fund

3rd Pillar
Pillar 3a/3b

The 3rd pillar pension is a voluntary pension that can be opened with any bank or insurance company in Switzerland. Provided you are employed in Switzerland, the maximum contribution of CHF 6883 (2022) can be fully deducted from taxation. For the majority of working people in Switzerland this will reduce tax liability by between CHF 1,000 and CHF 3,500 per annum.

As this tax incentive is designed to help people save for retirement, 3a funds can only be withdrawn on retirement or death unless:

  • You purchase property in Switzerland.
  • You leave Switzerland permanently.
  • You set up a business in Switzerland.
  • You are unable to work or claim invalidity benefit.

The other kind of 3rd Pillar is 3b. This cannot be deducted against your income tax (except in some cantons). However, there is normally no tax to pay on the growth. The 3b can be used for property financing and it is possible to access the funds whenever you like.

In most cases, if you are working in Switzerland the advantages of opening a 3a account are obvious. Our advisors will demonstrate how a 3a account can reduce tax whilst saving towards retirement. In addition to this we can also help you decide which 3a product best suits you’re needs based on an analysis of your future objectives.

For a free financial review with a Montfort International advisor please click here.


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Good overview of Swiss pension and investment system and future plan advices!

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July 3, 2022

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July 24, 2022

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May 1, 2022