Pillar 3a (linked)
Pillar 3a is the preferred private retirement savings vehicle in Switzerland for active workers.
Advantages
- Annual limit 2026: CHF 7,258 (employee), 20% of income up to CHF 36,288 (self-employed)
- Fully tax-deductible → 20–40% saving by canton
- Capital locked until 5 years before AVS (60 male/female)
- Reduced taxation at withdrawal (preferential rate)
Allowed early withdrawals
- Buying a primary residence
- Self-employment
- Permanent departure from Switzerland
- Disability
- 5 years before AVS
Providers (3a bank account)
- Frankly (Cantonal Bank ZH): 100% ETF, 0.48% fee, from CHF 1
- VIAC (Bank WIR): 100% ETF, 0.52% fee, from CHF 1
- finpension: 100% world ETF, 0.39% fee, great for expats
- Migros 3a, PostFinance 3a: traditional account, low interest (0.5–1%)
- Cantonal banks (BCV, BCG, ZKB): standard, 0.75–1.25%
ETF is by far the best option for young investors (long-term growth).
3a insurance vs 3a account
- 3a account: flexible, no commitment, transferable, variable rate
- 3a insurance: bundled with life/disability insurance, long commitment, less flexible but family protection
- For most: prefer 3a account (maximum flexibility)
Pillar 3b (free)
Characteristics
- No deposit limit
- No tax deduction (rare cantonal cases)
- Capital available at any time
- Broader: life insurance, free savings, rental property
Typical uses
- Classic life insurance: family protection on death
- Free savings account: emergency fund
- Investments: stocks, ETFs, real estate
- Gifts / transmission: vehicle for estate planning
Taxation
- Interest and dividends: taxed as income
- Capital gains (stocks, ETFs): exempt in Switzerland (private individuals)
- Death capital: taxed by canton and kinship
How much and where
Standard strategy
- Max out 3a each year (CHF 7,258)
- Invest 3a in ETFs via Frankly/VIAC/finpension
- Build a free 3b emergency fund: 3–6 months of salary
- Invest surplus in free ETFs, stocks, real estate
Optimal calendar
- Annual 3a contribution: before December 31 to claim that year's deduction
- Multiple 3a accounts: recommended after age 50 to spread withdrawals over several tax years
Special cases
Self-employed without LPP
- 3a ceiling: 20% of income up to CHF 36,288/yr (2026)
- Major tax optimisation
Cross-border worker
- No access to 3a unless partial Swiss tax domicile
- Alternatives: 3b or equivalent products in country of residence
Couple
- Each opens their own 3a: double tax deduction
- Couple can deposit 2 × CHF 7,258 = CHF 14,516/yr deductible
3a providers compared (2026)
| Provider | Type | Fees | Interest / ETF performance | Flexibility |
|---|---|---|---|---|
| Frankly | App ETF | 0.48% | ~7% historic | Very high |
| VIAC | App ETF | 0.52% | ~7% historic | Very high |
| finpension | App ETF | 0.39% | ~7% historic | Very high |
| PostFinance | Account | 0.5–0.8% | 0.75% | High |
| Cantonal banks | Account/fund | 0.8–1.5% | 0.75–1.5% | Medium |
| 3a insurance | Hybrid | 1.5–2.5% | Variable | Low |
Tips
- Start early: annual CHF 7,258 from age 25 at 5% return = CHF 700,000 at 65
- Contribute early in the year (January) to maximise ETF growth
- Open several 3a accounts from age 40–45 to stagger withdrawals tax-efficiently
- Review beneficiaries annually: legal order protects spouse > children > parents
- Beware aggressively sold 3a insurance: often hidden fees and limited flexibility
