Tax Savings and Pension Provision with Pillar 3a
With the introduction of retrospective payments into Pillar 3a from 01.01.2025, a new opportunity opens up for many gainfully employed persons to close their pension gaps in a targeted manner and simultaneously benefit from tax advantages. The following overview outlines the applicable conditions, the permissible amounts, and the rules that must be observed regarding retrospective payments.
Retrospective Payments from 01.01.2025
In 2026, you will be able to close the pension gap in your Pillar 3a for the first time if you did not pay the maximum amount of CHF 7,258.00 in 2025. When making a retrospective payment into Pillar 3a for past years, the following points must be observed:
- The person paying in must have income subject to AHV contributions in Switzerland, both in the year of payment and in the year or years for which the retrospective payment is being made.
- The maximum amount for the current year must be fully utilised before retrospective payments can be made for past years.
- Retrospective payments are limited in terms of amount and time.
In terms of time, retrospective payments will be permitted up to a maximum of 10 years in arrears, but not further back than 01.01.2025. In terms of amount, they are permitted up to the “small maximum amount”; in 2025, this is CHF 7,258.00. A later payment to close the gap from the year 2025 is limited to this maximum amount, even if the maximum amount in the current year is higher.
Maximum Amounts 2025
- CHF 7,258.00 for employees
- 20% of earned income and a maximum of CHF 36,288.00 for the self-employed
Deduction from income in the year of payment
The entire payment into Pillar 3a can be fully deducted from taxable income in the tax year of the payment; i.e. the maximum amount for the current year as well as the retrospective payments for past years.
In 2025 and 2026, the maximum amount is CHF 7,258.00 for employees and 20% of earned income, but a maximum of CHF 36,288.00, for the self-employed. As a rule, these maximum amounts are adjusted every two years.
Practical Example
In 2025, Sophie saves CHF 15,000.00 from her salary, resigns from her job at the end of the year, concentrates fully on completing her degree in the first half of 2026 and goes on a trip around the world for the second half of the year. From March 2027, she is working again and pays into Pillar 3a for the first time.
Sophie can pay the maximum amount into her Pillar 3a account in 2027. In addition, she can close her pension gap of CHF 7,258.00 from the year 2025. She can deduct both the payment for 2027 and the retrospective payment for 2025 from her taxable income.
No wealth tax
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