Pillar 3a
Private Pension Scheme (Säule 3a)
Simple Definition
A restricted private pension plan that offers significant tax advantages. It is voluntary but highly recommended.
Why this matters to Expats.
The single easiest way to lower your tax bill. You can deduct contributions (approx. CHF 7,056/year for 2024) from your taxable income. If you don't use it, you lose the allowance for that year.
Actionable Intelligence
Invest, Don't Save: A standard 3a bank account pays ~1% interest. A "3a Securities Solution" (Equity Fund) historically yields 5-7% over long horizons. For expats staying >5 years, invest in stocks.
Multiple Accounts: Open 5 separate 3a accounts over time. When you retire, you can close them in different years to break "Tax Progression" on the payout.
Deadline: Money must arrive by Dec 31. Send it before Christmas!
Frequently Asked Questions
Can I withdraw it early?
Only for: Buying a house, leaving Switzerland permanently, becoming self-employed, or disability/death.
Is it locked forever?
No, you can withdraw it 5 years before retirement age.
Bank vs Insurance?
Bank 3a is flexible (stop paying anytime). Insurance 3a forces you to pay premiums. We usually recommend Bank 3a for flexibility.
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