3rd Pillar in Switzerland:
Complete Guide for Expats 2026
Maximize tax savings, build retirement wealth, and secure your financial future with expert guidance.
Save on Taxes
Save CHF 1,500-7,000 Annually
Full income deduction, tax-free growth, and preferential withdrawal tax rates.
Flexible Investment
Choose Your Investment Strategy
Select from bank or insurance solutions with risk profiles from conservative to aggressive.
Expert Support
Get Personalized Guidance
Our FINMA-certified advisors create a personalized strategy just for you.
Calculate Your Annual Tax Savings
See exactly how much you can save with 3rd pillar contributions in under 60 seconds.
Estimated Annual Tax Savings
Pillar 3b contributions are generally not tax deductible.
Hans Steiner
Finanzplaner mit eidg. FA
"The 3rd Pillar is the most powerful tax tool available. I'll help you secure your standard of living."
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Methodology: Calculations are based on projected 2026 tax data. Results are estimates assuming a standard deduction profile and may vary based on your specific municipality, confession, and deductions. Marginal tax rates are simplified averages for the selected canton.
Explore Our In-Depth 3rd Pillar Guides
Pillar 3a vs. 3b
Understand the key differences between bound and flexible pension provisions.
Read Guide →Tax Optimization Guide
Maximize your deductions and save thousands on your annual bill.
Read Guide →Bank vs. Insurance
Honest comparison of the two main ways to save for retirement.
Read Guide →Best Providers 2026
We reviewed the top Swiss providers including VIAC, Finpension, and Frankly.
Read Guide →Withdrawal Guide
How and when to withdraw your money, plus strategies to pay less tax.
Read Guide →For Young Professionals
Why starting early is the ultimate hack for compound interest.
Read Guide →For Families
Protecting your loved ones while building wealth for the future.
Read Guide →For Self-Employed
Special rules and higher contribution limits for business owners.
Read Guide →Understanding the Swiss 3rd Pillar
What is the 3rd Pillar?
The Swiss pension system is famously based on three "pillars." While the 1st pillar (state pension) covers basic living costs and the 2nd pillar (occupational pension) maintains your standard of living, the 3rd pillar is your private, voluntary provision. It helps close the pension gap and, crucially for expats, acts as a powerful tax optimization tool.
The Swiss Three-Pillar System
Customized private provision to close income gaps. Offers major tax deductions (up to CHF 7,258/year for employees) and tax-free growth.
Company pension scheme (BVG). Both employees and employers contribute. Protects against disability and covers heirs.
State-run pension (AHV) and disability (IV). Covers basic living costs. Maximum AHV pension is currently CHF 2,450 per month.
Why Expats Need a 3rd Pillar
International residents often arrive in Switzerland later in their careers, meaning they have "contribution gaps" in their 1st and 2nd pillars. Without a 3rd pillar, your retirement income might be significantly lower than what you're accustomed to. Furthermore, the immediate tax deduction (up to ca. 40% marginal rate depending on location) makes it one of the best Guaranteed Returns on Investment available.
Key Facts 2026
- Max. Contribution (Employed): CHF 7,258 (Est.)
- Max. Contribution (Self-Employed): CHF 36,288 (Est.)
- Tax Deduction: 100% of contribution
Pillar 3a vs. Pillar 3b: Which is Right for You?
Pillar 3a: The Tax-Deductible Pension
Restricted or "bound" pension provision. The state encourages this with massive tax breaks, but your money is locked until retirement (with exceptions).
- ✓ Tax deductible contributions
- ✓ No wealth tax on assets
- ✓ Preferential tax on withdrawal
Pillar 3b: The Flexible Savings Plan
Unrestricted or "free" pension provision. Basically standard savings or insurance wrappers without the strict lock-in, but also without the same tax deductions.
- ✓ Unlimited contributions
- ✓ Withdraw anytime
- ✗ Generally NOT tax deductible (except Geneva/Fribourg under conditions)
| Feature | Pillar 3a (Bound) | Pillar 3b (Free) |
|---|---|---|
| Tax Deductibility | Yes, fully deductible (up to limit) | No (generally) |
| Contribution Limit | CHF 7,258 / CHF 36,288 (2026 Est.) | Unlimited |
| Withdrawal | Restricted (Retirement, Property, etc.) | Flexible / Any time |
Bank vs. Insurance: Choosing Your 3a Solution
Bank 3a
Pure savings or investment account. You decide how much to pay in each year (or nothing at all).
Insurance 3a
Savings combined with Life/Disability insurance. You commit to paying a premium for decades.
Free Resources
Strategy Worksheet
Download our comprehensive PDF guide.
Tax Planning Guide
Download our comprehensive PDF guide.
Provider Comparison
Download our comprehensive PDF guide.
Canton Tax Rates
Download our comprehensive PDF guide.
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 (state) and 2nd (occupational) pillars. It allows you to save additional funds for retirement while offering significant immediate taxes. For expats, it's crucial because the mandatory pension system often won't provide enough income to maintain your lifestyle in retirement, typically covering only 60% of your final salary.
How much can I contribute in 2026?
For the tax year 2026, employed individuals with a pension fund (2nd pillar) can contribute up to CHF 7,258 (estimated/projected, confirm official max) - typically indexed annually. Self-employed individuals without a 2nd pillar can contribute up to 20% of their net operating income, capped at CHF 36,288.
Can I withdraw my money early?
Yes, but only under specific conditions: Buying a primary residence, becoming self-employed, leaving Switzerland permanently (with some EU/EFTA restrictions), or receiving a full disability pension. In these cases, you can withdraw your capital, subject to a separate capital withdrawal tax.
Should I choose a bank or insurance solution?
It depends on your goals. Bank solutions (3a accounts/funds) offer flexibility—you can skip contributions, change amounts, and usually have lower fees. Insurance solutions combine savings with risk protection (death/disability) but oblige you to pay premiums. For pure investment growth, bank solutions are often preferred; for family protection, insurance might make sense. We help you evaluate both.