The 3rd pillar (3a and 3b): optimise your provision and cut your taxes

The 3rd pillar is the most accessible lever to boost your retirement savings while cutting your tax bill. Here is how pillars 3a and 3b work, with the 2026 figures and a major new development.

Pillar 3a: tax-efficient tied provision

Pillar 3a contributions are fully deductible from taxable income. For 2026, the annual ceiling is CHF 7,258 for employees affiliated to a pension fund, and up to 20% of net income (max CHF 36,288) for the self-employed without a 2nd pillar.

In return, the capital is tied: it can normally be withdrawn from five years before retirement, or earlier in specific cases (buying your home, becoming self-employed, leaving Switzerland). On withdrawal, it is taxed once at a reduced rate.

New in 2026: retroactive buy-backs

A significant change: from 2026 you can retroactively fill missed 3a contributions. If you didn't pay the full amount in a given year (from 2025 onwards), you can catch up within a ten-year window — provided you have first paid the current year's full contribution. These buy-backs are fully tax-deductible.

Pillar 3b: flexible free provision

Pillar 3b has no annual ceiling and no withdrawal restrictions. It is generally not deductible, but offers useful flexibility and estate-planning advantages — valuable for protecting a partner or children.

A few smart moves

• Pay in early in the year to capture a full year of return.
• Spread savings across several 3a accounts to stagger withdrawals and reduce the exit tax.
• Compare bank and insurance solutions — fees vary widely.

Helvate calibrates your 3rd pillar to your tax situation and your goals. Get in touch for a tailored plan.