The 3rd pillar is the only pension lever entirely in your hands, and the most tax-efficient. In 2026 you can deduct up to CHF 7,258 a year if you're an employee affiliated to a pension fund, and a major new rule now lets you catch up on previous years.
Old-age and survivors' insurance, compulsory for all, funded on a pay-as-you-go basis. It guarantees a minimum income, usually insufficient on its own to maintain your previous standard of living.
Employment-based occupational pension, targeting about 60% of your final salary combined with the AVS. Gaps frequently appear when changing jobs, working part-time or starting a career late.
Optional, entirely under your control, and the most tax-advantageous of the three. It comes in 3a (restricted) and 3b (flexible) forms.
| Situation | Annual deductible limit |
|---|---|
| Employee affiliated to a pension fund (LPP) | 7'258 CHF |
| Self-employed without a 2nd pillar | 20% of income, up to CHF 36,288 |
Source: official 3a limits 2026 (AXA, UBS, FSIO). These amounts are revised each year in line with the reference LPP salary.
A concrete example: with an income of CHF 100,000 and a marginal tax rate of about 25%, a payment of CHF 7,000 into the 3a generates a tax saving of around CHF 1,750, so you actually spend only CHF 5,250 to save CHF 7,000.
Since 2026, a major reform allows, for the first time, to retroactively fill 3a contribution gaps from previous years, over a period going back up to 10 years. The first possible retroactive buy-back concerns the year 2025, made in 2026.
To check before any buy-back: the exact conditions (eligible years, supporting documents required) depend on your individual situation and the pension institution. A personalised review lets us quantify your catch-up potential precisely.
Capped, tax-deductible within the limits above, with withdrawals generally locked until 5 years before retirement age (except in certain cases: purchase of a main residence, permanent departure from Switzerland, setting up as self-employed).
No payment cap, full withdrawal flexibility, and tax advantages that vary by canton (often linked to wealth tax or a partial exemption depending on the contract term).
The most common strategy is to maximise the 3a first each year (an immediate, guaranteed tax benefit), then direct any additional savings into a 3b if further means are available.
Differences in flexibility, taxation and withdrawal between the two forms of 3rd pillar.
Full comparison between a bank solution, investment funds and an insurance 3rd pillar.
How to identify and fill a 2nd pillar gap, and combine it with your 3rd pillar.
Tax strategies specific to the canton of Geneva to optimise your pension planning.
The choice between 3a and 3b, between a bank and an insurance solution, depends on your time horizon, your risk tolerance and your family situation. As an independent broker, we compare all the solutions on the Swiss market to identify the one that truly fits you.
Yes, and it's even recommended as retirement approaches: spreading savings across several 3a accounts lets you stagger withdrawals over different tax years and reduce the tax progression at the time of withdrawal.
The exact terms vary by status; an individual check is needed to confirm your eligibility and the precise amount you can catch up.
The excess portion is simply not tax-deductible; it is neither penalised nor automatically refunded, but it loses its tax advantage.
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