The pillar 3a is one of the most effective tools for financial provision in Switzerland. Nevertheless, many employees do not utilize the maximum possible contribution – thus giving away real money every year.
In this article, you will learn why it almost always makes sense to pay the maximum amount into pillar 3a and how you can benefit from it in the long term.
1. Save taxes immediately – year after year
The biggest advantage of pillar 3a is the direct tax benefit.
Contributions to pillar 3a can be fully deducted from taxable income.
What does this mean in concrete terms?
Depending on your income and place of residence, you save between 20% and 40% in taxes for each Swiss franc contributed.
Example:
Deposit: 7,258 CHF (maximum amount for employees)
Tax savings at 30%: approx. 2,100 CHF
You are effectively investing only around 4,900 CHF, but 7,258 CHF are working for your future.
2. The compounding effect is stronger with higher contributions
The earlier and the more you contribute, the stronger the compounding effect works.
Those who contribute the maximum amount every year benefit from exponential wealth growth over decades.
Long-term effect
small amounts → small effect
maximum contribution → maximum wealth creation
Especially with a securities-based 3a solution (e.g., with ETFs), this can make a difference of several tens of thousands of francs over 30 years.
3. Targeted closure of retirement provision gaps
The statutory provision (1st and 2nd pillar) is not sufficient for many people to maintain their accustomed standard of living in retirement.
Pillar 3a helps with this:
closing provision gaps
reducing dependence on the pension fund
flexibly preparing for one's future
Especially for:
part-time workers
self-employed individuals
high earners
people starting their careers later
pillar 3a is a central provision instrument.
4. Tax optimization not only when contributing but also when withdrawing
Not only is the contribution tax attractive – the withdrawal is also subject to a reduced tax rate and is separate from other income.
Additional tip
Those who manage multiple 3a accounts and withdraw them in a staggered manner can further reduce their tax burden.
The higher the accumulated capital, the greater the optimization potential.
5. More control and transparency than in the pension fund
Compared to the 2nd pillar, pillar 3a offers significantly more flexibility:
free choice of investment strategy
higher equity ratio possible
transparent costs
easy adjustment to life phases
Especially in the long term, this can lead to higher returns – particularly with low fees.
6. Disciplined wealth building without consumer traps
Pillar 3a enforces a certain financial discipline:
The money is earmarked and not available for short-term consumption.
This is not a disadvantage – but an advantage.
Because:
Wealth is created through consistency
regular contributions are the key to success
"What is not in the account will not be spent"
7. Particularly sensible in combination with professional advice
The full benefit of pillar 3a only unfolds when:
the appropriate investment strategy is chosen
cost-effective solutions are used
tax optimization is taken into account
pillar 3a is embedded in a comprehensive strategy
Independent advice – ideally on a fee basis – ensures that you not only contribute but also optimize your provisions.
Conclusion: The maximum contribution is not mandatory – but almost always a wise decision
Contributing the maximum amount to pillar 3a means:
immediate tax savings
long-term wealth accumulation
closing provision gaps
remaining financially self-determined
actively shaping retirement provision
Those who take advantage of this opportunity year after year gain a decisive financial advantage for the future.