Even if you have always paid your OASI contributions in full and always been insured in a pension fund through your employer, you can expect to receive only 60% of your final salary as pension income. That means the third pillar is an essential way of supplementing your OASI and pension fund benefits in line with your needs.
Pillar 3a, also referred to as tied pension provision, is part of Switzerland’s system of private pension provision. Its main purpose is to provide for old age, and it supplements the benefits paid by the state pension schemes (OASI/IV) and occupational pension schemes (pension funds).
Pillar 3a is subject to clear statutory conditions. Among other things, the federal government sets a maximum annual amount that can be invested.
Payments to pillar 3a are voluntary, but highly recommended. By contributing, you benefit from tax incentives, in that your annual payments can be deducted from your taxable income.
Anyone gainfully employed in Switzerland with income subject to OASI contributions (employees and the self-employed) can make provision for their retirement via pillar 3a.
Any time you like. However, your annual contribution must reach the recipient by no later than 31 December of any year in order to qualify for deduction from your income tax the following year.
The amount you pay into a pillar-3a product in any year can be deducted from your taxable income (3a tax deduction) in the tax return you lodge the following year. Calculate your tax savings right now.
You can draw your retirement benefits at the earliest five years before reaching OASI retirement age.
Capital payments are taxed once only, separately from your other income and at a reduced rate that differs from canton to canton. Please consult the tax office in the canton where you reside.