The new limits
Pillar 3a limits are linked to the AHV state pension. Because the Federal Council raises pensions by 1.59 % from January 2027, the occupational pension thresholds and the 3a limits rise too. For your 2026 tax return, the old limit still applies.
| 2026 | 2027 | |
|---|---|---|
| With pension fund | CHF 7’258 | CHF 7’373 |
| Without pension fund (max. 20 % of income) | CHF 36,288 | CHF 36’864 |
| Monthly standing order (with fund) | CHF 604.83 | CHF 614.42 |
Why pillar 3a is worth it for expats
Contributions are fully tax-deductible. At a marginal tax rate of 25 %, the full CHF 7’373 saves around CHF 1’843 in tax per year; at 35 %, around CHF 2’581. The money is invested in a savings account or in funds and grows tax-free until withdrawal.
Withdrawal is possible from age 60, or earlier when you buy owner-occupied property, become self-employed, receive a full disability pension or leave Switzerland permanently. Expats leaving for good can usually withdraw their 3a; the withdrawal is taxed at a reduced rate, sometimes as withholding tax that can be partly reclaimed depending on the tax treaty.
- Fully deductible from taxable income
- Withdrawal from 60 or when leaving Switzerland
- Several accounts allow staggered withdrawals
Who can contribute
Anyone with income subject to Swiss AHV contributions – including part-time employees and, under certain conditions, cross-border commuters taxed at source. People without earned income, such as students without a job or early retirees, cannot contribute. Since 2026, missed contributions from 2025 onwards can be caught up if you had AHV-liable income in both the gap year and the catch-up year.
Opening several 3a accounts lets you withdraw them in different years and reduces the progressive capital withdrawal tax.
Account or investment funds?
A 3a account pays interest but offers little growth after inflation. 3a investment solutions put the money into equity and bond funds, with higher expected returns over long periods and price fluctuations along the way. For a horizon of ten years or more, many choose a higher equity share; closer to withdrawal, a more conservative mix.
Fees matter more than most people think: one percentage point in annual costs can cost tens of thousands of francs over a working life. Compare total expense ratios, account fees and transfer conditions before choosing a provider. You can transfer your 3a assets to another provider at any time, as a whole account.
Set up your standing order
Set your standing order to CHF 614.42 per month, or more practically CHF 614 from January to November and the balance in December. Do not exceed the limit: excess contributions are not deductible and must be refunded. Until 31 December 2026, the limit is still CHF 7’258.
Track your real numbers in BudgetHub: enter income and fixed costs once and see each month what is left – free, no bank connection, data hosted in Switzerland.