3rd Pillar Pension in Switzerland
Optimize your retirement savings with Switzerland's voluntary pension system. Learn about tax benefits and investment options.
Tax Benefits
Significant tax deductions on contributions
Flexible Investment
Choose between bank and insurance solutions
Early Withdrawal
Access funds for property purchase or business
Types of 3rd Pillar
Pillar 3a
Restricted retirement savings with tax benefits
- Annual contribution limits
- Tax-deductible contributions
- Restricted withdrawal conditions
- Government regulated
Pillar 3b
Flexible private savings without restrictions
- No contribution limits
- Flexible withdrawals
- Various investment options
- No tax benefits
Frequently Asked Questions
- What is the 3rd pillar and why do I need it?
- The 3rd pillar is a voluntary private pension scheme in Switzerland that complements the mandatory 1st and 2nd pillars. It helps you save additional money for retirement while offering significant tax advantages. It's particularly important for expats who may have gaps in their Swiss pension contributions.
- What's the difference between Pillar 3a and 3b?
- Pillar 3a is a restricted pension plan with tax benefits and annual contribution limits (6,826 CHF for employed persons, 34,128 CHF for self-employed). Pillar 3b is unrestricted private savings with no limits but fewer tax advantages.
- How do I start a 3rd pillar account?
- You can open a 3rd pillar account with any Swiss bank or insurance company. We recommend comparing different providers to find the best solution for your needs. Our experts can help you understand the options and set up your account.
- When can I withdraw my 3rd pillar funds?
- Regular withdrawal is possible 5 years before reaching AHV retirement age. Early withdrawal is allowed for: buying property, starting a business, moving abroad permanently, or switching to self-employment.
- How much should I contribute to my 3rd pillar?
- For employed persons, the maximum tax-deductible amount in 2024 is 7,056 CHF. For self-employed persons without a 2nd pillar, it's up to 20% of net income or maximum 35,280 CHF. Contributing the maximum amount optimizes tax benefits.
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