How you benefit from Pillar 3a:
Private pension planning comprises both tied (Pillar 3a) and flexible (Pillar 3b) options. It supplements your OASI and occupational pension fund benefits. Demographic trends and rising life expectancy mean it is increasingly important in Switzerland to make private provision for retirement – because your Pillar 1 and Pillar 2 benefits will together make up only around 60% of your previous income after you retire. That’s why it’s worthwhile for young people to think seriously about Pillar 3a.
Each year, you can deduct contributions to tied pension provision (Pillar 3a) from your taxable income. The Federal Council sets the maximum amount. The maximum deductible amount for Pillar 3a in 2020:
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As a rule, your Pillar 3a savings can be disbursed up to five years before or five years after your normal retirement age. That way you can maintain your standard of living even after retirement and enjoy a carefree life. But you can also use your tied retirement savings to fulfil a long-cherished dream. You can draw on your Pillar 3a savings early in the following cases: