Everything you need to know about Pillar 3a

Let's start with the basics: Switzerland's pension system is built on three pillars, designed to provide financial security in old age, in the event of disability, and for surviving dependants.

The first pillar is the state pension system (AHV/IV). The second pillar is your occupational pension (pension fund), to which you and your employer both contribute. The third pillar is voluntary private retirement savings.

If you're employed, contributions to the first and second pillars are automatically deducted from your salary. If you're self-employed, different rules apply.

Why is this especially important for women?

Women are more likely to work part-time and to interrupt their careers more often and for longer periods than men—for example, after having children. The Swiss pension system is not designed for this. The combination of family planning, unpaid care work, and lower wages means that women in Switzerland receive on average about 31% less pension income than men.

The main issue lies in occupational pensions. While the gap in the state pension (AHV) is less than 3%, the so-called gender pension gap in the second pillar is around 60%. This makes private pension savings even more important for women.

Who can open a pillar 3a account?

Anyone with income subject to AHV contributions—including people just starting their careers. Employees, self-employed individuals, and people receiving unemployment benefits can all benefit.

It is particularly relevant for part-time workers. It may even be worth negotiating an additional contribution to pillar 3a with a partner or parents.

Recipients of disability benefits (IV) can only contribute if they also have additional income subject to AHV. Those without income can instead use pillar 3b, which we’ll explain below.

How much should you contribute each year?

Simply put: every franc you contribute is an investment in your retirement. The amount depends on your personal situation.

In 2026, the maximum contribution is CHF CHF 7,258. Self-employed individuals without a second pillar can contribute up to 20% of their annual income, with a maximum of CHF 36,288 (2026).

Don’t forget: all contributions to pillar 3a can be deducted from your taxable income

When is the best time to contribute?

Ideally, at the beginning of the year—especially if your pillar 3a is invested in financial markets. Time in the market matters. The earlier you invest, the more you benefit from potential returns and compound interest.

If you can’t pay the full amount at once, setting up a fixed monthly contribution is also effective.

Where can you open a pillar 3a account?

Both banks and insurance companies offer pillar 3a solutions. The right choice depends on your goals and situation.

A bank solution is often better if you want flexibility and focus on saving and investing.
An insurance solution may suit you if you also want coverage for risks like disability or death.

Important: insurance solutions usually involve long-term commitments. Review carefully before deciding.

Why should you invest your private pension savings?

You can either keep your 3a money in a savings account or invest it. If you leave it in an account, it will grow only slowly—especially with today’s low interest rates. In fact, inflation may reduce its value over time.

Investing offers better long-term growth potential. Historically, stock markets have delivered returns of up to around 7% per year. For example: if you invest 100 francs at a 5% annual return, it grows to 163 francs over ten years.

There may be years with losses, but since pension savings are typically invested over decades, the long-term outlook is positive.

You don’t have to invest everything in stocks—you can choose your allocation. As a rule: the younger you are, the more you can invest in stocks due to a longer time horizon.

How much can you save in pillar 3a?

There is no upper limit to your total savings. However, it’s advisable to open additional 3a accounts once you reach a certain amount—around CHF 50,000 is a common threshold.

The advantage: at retirement, you can withdraw funds in stages and reduce taxes.

When can you withdraw the money?

Pillar 3a is meant for retirement, so it’s best to keep the money invested as long as possible. Normally, you can withdraw it no earlier than five years before retirement age.

Early withdrawal is possible if:

• you become self-employed
• you move abroad
• you buy a home for personal use
• you repay a mortgage
• you receive a full disability pension

What else should you consider?

Pay attention to management fees. High fees can significantly reduce your returns over time. Ideally, fees should be below 1%. If they’re higher, switching providers may be worthwhile.

What is pillar 3b?

Pillar 3b is the flexible, private pension option. “Flexible” means fewer rules—you decide how much to save, how to invest, and when to withdraw.

It includes assets like investment portfolios, funds, savings accounts, real estate, or life insurance. Anyone can use pillar 3b—even without income subject to AHV.