Pillar 3a (the 'tied' private pension) is the most tax-efficient savings vehicle in Switzerland. Every employed person with AHV-liable income can contribute up to an annual maximum: CHF 7,258 for those affiliated with a Pillar 2 fund, or 20% of net self-employment income (capped at CHF 36,288) for the self-employed without Pillar 2.
Contributions are deducted from taxable income at the marginal rate, saving 25–40% in tax depending on canton and income. Capital grows tax-free — no wealth tax, no income tax on interest or dividends — and is taxed only at withdrawal at a separate, reduced rate. Funds can be held as cash, bonds, or up to 100% equity through 3a investment products.
Capital is locked until 5 years before AHV age, but four exceptions allow early withdrawal: buying or amortising a primary residence (WEF), starting your own business, permanently leaving Switzerland, or going onto a full disability pension. From 2025 missed contribution years can be retroactively paid in.
A Swiss employee in the 30% marginal tax bracket who pays the full CHF 7,258 into Pillar 3a saves about CHF 2,177 in tax. Investing the same amount each year at 5% nominal return for 30 years grows to roughly CHF 506,000.