Pillar 3a: Maximum tax deductions in 2025

Tax deduction for the 3rd pillar 2025

Pillar 3a supplements the AHV and the BVG. Payments into an account or into a Pillar 3a insurance can be deducted from taxes. For the 3rd Pillar 2025, the maximum amount of 7 francs for employees.

Double tax deduction from 2025

If there were contribution gaps in previous years, from 2025 up to double the amount paid 14 Swiss francs (SRF announcement to the Federal Council decision of November 2024). Unfortunately, this attractive opportunity is subject to conditions:

• can only be paid retroactively if the current year is also paid in full
• These "contribution gaps" can be filled in the future - up to ten years retroactively, but this only applies to contribution gaps that arise from 2025 onwards. For the first time in 2026, this will be possible for a gap that arose in 2025.
• In both years you must have been employed in a position subject to AHV contributions. 

For Self-employed persons or persons without a pension fund From 2025, the maximum contribution will be 36 francs or a maximum of 288 percent of net income (source: BSV). There is no possibility of additional payment here.

The exact conditions and restrictions for tax deductions for Pillar 3a vary from individual to individual. It is therefore advisable to find out about the exact regulations and, if necessary, to hire a tax advisor to find out which tax deductions are applicable in your case. The easiest way is to contact a professional service provider to to have your tax return filled outin order to automatically claim all maximum tax deductions. This usually saves several hundred or thousands of francs per year.

Optimization of Pillar 3a and the entire pension provision

Pillar 3a is a pillar of the Swiss pension system that allows employees and self-employed people to save part of their income in a special pension account. These funds can be paid out upon retirement or early retirement. It is important to understand that the third pillar is voluntary. It complements the mandatory pillars AHV and BVG. The latter is mandatory for employees above a certain income. All three Pension systems together should be optimizedin order to secure and enjoy life in old age.

Furthermore, it is possible to Insurance with Pillar 3a, for example to reduce the risk of death in connection with the affordability of the home to secure.

In general, however, we recommend a simple solution with good returns and low costs.

payout of Pillar 3a

The payment may be made no earlier than five years before and no later than five years after reaching the normal retirement age under the AHV (65 years for men and women).

Early payment of retirement benefits is permitted in the following cases:

• • Purchase or partial purchase in a pension scheme within the framework of the 2nd pillar (reallocation)

• • If the insured person receives a full disability pension from the Federal Disability Insurance and the risk of disability is not insured

• • taking up self-employment

• • Emigrating: When the pension holder leaves Switzerland permanently

• • Acquisition of residential property for personal use (promotion of home ownership and home ownership)

tax deduction

Employees and self-employed persons can deduct their contributions to Pillar 3a from their income for federal, state and local taxes. Contributions may be made up to five years after reaching the normal AHV retirement age.

Tax consequences of the payout of the 3rd pillar

The saved taxes are due again when the 3rd pillar is withdrawn, but to a reduced extent. The exact calculation depends on the canton, the amount of the withdrawal, the so-called capital withdrawal tax and the progression. It is worth planning the accounts and insurance of the pillar 3a when opening in order to be able to optimize the withdrawal later. Ideally, this is done when tax planning and pension advice. Contact us without obligation.

Pillar 3a in assets

When filing your tax return, Pillar 3a, as well as pension fund money or Pillar 3a insurance, are not counted as assets.

Pillar 3a summarized

Pillar 3a is a pillar of the Swiss pension system that allows employees and self-employed people to save parts of their income in a special pension account. These funds can be paid out upon retirement or early retirement.

The 3rd pillar is subject to certain tax regulations in Switzerland, which can vary depending on the individual situation. Some possible tax consequences of Pillar 3a are listed below:

• • Contributions to the 3rd pillar are generally tax-free as long as they are within the specified maximum limits. This also applies to the interest that accrues on the 3a account.

• • Payments from Pillar 3a are generally subject to tax, but at a reduced rate. There are also exceptions, such as for contributions paid out due to disability or death.

It is important to note that the tax consequences of the 3rd pillar may vary depending on the individual situation and that the points mentioned above are only general guidelines.

The deadline for payments into the third pillar is December 31.12st of the respective tax yearFor the tax return, a confirmation from the bank or insurance company with the corresponding date is required.