Pillar 3
Pillar 3a: the pillar you control, and the one the tax office pays you to use.
Pillar 3 is not compulsory. It is an investment where the Swiss government encourages you to save extra for retirement by making the contribution fully tax deductible.
The basics
How the deduction works.
This portion of the pension is not compulsory. It is an investment/insurance where the Swiss government would like to encourage people to save extra for retirement by making an investment available that is fully tax deductible (except the 3b version).
The current limit is CHF 7,258 per annum. By making this investment you simply deduct the premium from your taxable income, which makes your taxable amount less and often lowers your tax rate. The tax authorities will then reimburse you on taxes already paid, for tax-at-source individuals. This could be anywhere between 15–25% on average, dependent on your tax scale and municipality.
CHF 7,258
Annual limit
Current Pillar 3a maximum
15–25%
Typical relief
Depending on scale and municipality
2
Ways to structure it
Bank account or insurance
Estimate
Pillar 3a · tax relief estimate
What does the deduction give back?
Your Pillar 3a contribution comes off your taxable income. Move the sliders to see the order of magnitude — the exact figure depends on your tax scale and municipality.
The current annual limit is CHF 7,258.
Typically between 15% and 25%, depending on your tax scale and municipality.
Estimated tax saved, per year
CHF 1,452
Reimbursed by the tax authorities on tax already paid, for tax-at-source individuals.
Indicative only. Actual relief depends on your canton, municipality, marital status and total taxable income. Tax-at-source individuals are reimbursed on tax already paid. BCS will confirm your figures before any recommendation.
Your options
Two ways to structure a Pillar 3a.
Option one
The bank option
You open a specific 3a bank account and transfer the funds into it. With this option there is no obligation to make annual contributions.
Some banks offer a good ETF option to invest into. The default guaranteed interest rate, depending on the provider, is presently between 0.015% and 0.1% per annum.
Option two
The insurance option
You structure the Pillar 3a through one of the many approved insurance companies — which allows risk cover and an actively managed fund selection to sit inside the same tax-deductible premium.
This is the route BCS advises on, tailored to your individual needs.
Insurance option
Why the insurance route is often the stronger structure.
- You can add risk insurance benefits to make up for shortfalls in your portfolio — created by companies that cut costs and restructure their Pillar 2 benefits, carry lower than 100% accident cover, or offer no daily sickness benefits.
- By doing this, the cost of your risk insurance forms part of the Pillar 3 premium and is also tax deductible, saving you on risk premiums.
- Through the available investment funds, moderate portfolios have been performing at 6–10% per annum, and 100% equity allocations for the higher-return investor have achieved an average of almost 15% p.a. over the last three years.
- The insurance investment funds are actively managed — you can see the composition change from month to month.
- There are many different ways to structure your Pillar 3, and the right one depends on your situation and circumstances.
Performance figures are historic and are not a guide to future returns. The value of an investment can fall as well as rise, and fund performance depends on the allocation chosen.
Questions
Common questions
- How much can I pay into Pillar 3a in 2026?
CHF 7,258 if you are a member of a pension fund. If you have no second pillar — most self-employed people — you may contribute 20% of your net earned income up to CHF 36,288. The Federal Tax Administration confirmed these limits are unchanged for the 2026 tax year.
- How much tax does a Pillar 3a contribution actually save?
The contribution comes off your taxable income, so the saving is your contribution multiplied by your marginal rate — commonly 15% to 25%, depending on your income, canton and municipality. On a full CHF 7,258 contribution that is roughly CHF 1,100 to CHF 1,800 a year. The calculator on this page gives you the figure for your own rate.
- Is Pillar 3a better at a bank or through an insurer?
They solve different problems. A bank 3a account carries no obligation to contribute every year and can hold ETFs, but the default guaranteed interest is currently between 0.015% and 0.1%. An insurance 3a lets you attach life and disability cover to the same tax-deductible premium, which is what makes it useful if your employer's pension leaves a gap. BCS advises on the insurance route.
- Can I use Pillar 3a to buy a home?
Yes. Savings in Pillar 3a count towards the minimum 10% of the purchase price that must come from sources other than your occupational pension. Banks also accept an insurance Pillar 3 linked to equities in place of amortising your second mortgage, which lowers your monthly outgoings and leaves the capital invested.
Figures are the scale in force for 2026 and are checked against the federal sources linked above. They are general information, not personal advice — what applies to you depends on your canton, municipality, provider and circumstances.
Book a consultation
Put your Pillar 3 to work before the tax year closes.
We will look at your Pillar 2 certificate first, find the shortfall, and then structure a Pillar 3 that fills it — inside one tax-deductible premium.