One, two or three: How many pillar 3a accounts do you actually need?

The third pillar is a particularly important part of retirement planning for women.
The Swiss pension system—with the state pension (AHV) and occupational pensions (pension fund)—is not designed for typical female career paths with interruptions and part-time work. In the second pillar alone, the pension gap between women and men in Switzerland is around 60%. This makes private savings through pillar 3a all the more important. Here’s what to consider, why multiple accounts matter, and how you can save on taxes.

Who can open a third pillar account?

Anyone with income subject to AHV can open a pillar 3a account. There is no minimum income requirement. This means you can contribute even if you are just starting your career, self-employed, or working part-time.

In 2026, the maximum contribution is CHF 7,258 per year.

I already have one 3a account. Is that enough, or do I need a second one?

Experts recommend keeping no more than CHF 50,000 in each Pillar 3a account. If you save more, consider opening an additional account.

Why? Having multiple Pillar 3a accounts can help reduce the taxes you pay when you withdraw your savings. Here's how.

How many 3a accounts can I have?

There is no legal limit. You can open as many accounts as you like. Most providers limit you to five accounts, but you can open additional ones with different providers.

Is there an ideal number of 3a accounts?

There’s no one-size-fits-all answer. It depends on how much you save and when you plan to withdraw the funds. As a rule of thumb, two to three accounts are often ideal.

Why do multiple 3a accounts reduce taxes?

When you withdraw money from pillar 3a, you pay a reduced capital tax. However, the tax rate increases with the amount withdrawn in a single year.

Since you can only withdraw each 3a account in full (partial withdrawals are not allowed), spreading your savings across multiple accounts allows you to withdraw smaller amounts over several years—and pay less tax overall.

Do I have to withdraw all accounts at once?

No. In fact, it’s better not to. You should withdraw your accounts gradually over several years. This staggered approach is what helps reduce taxes.

What is the best way to stagger withdrawals?

You can withdraw pillar 3a funds at the earliest five years before the official retirement age. If you continue working beyond retirement age, you can keep your accounts for up to five additional years.

The best withdrawal strategy depends on how many accounts you have, how much is in each, and when you plan to retire. As a general rule, withdraw one account per year.

Can I withdraw my third pillar independently of the second pillar?

Yes — and it’s highly recommended. For tax reasons, you should avoid withdrawing large amounts from both the second pillar (pension fund) and pillar 3a in the same year.

What should married couples consider?

In Switzerland, married couples are taxed jointly—including pension withdrawals. That’s why it’s important to plan together when to withdraw which accounts.

Should I save or invest my pillar 3a funds?

Investing is generally more beneficial for long-term growth. Historically, stock markets have delivered returns of up to around 7% per year. While there may be short-term losses, long-term investments typically offer strong growth potential.

You don’t have to invest everything in stocks. You can choose a mix—part invested, part held in cash. As a rule: the younger you are, the more you can invest in stocks due to a longer investment horizon.