Salary & taxes
Pillar 3a Calculator
Pillar 3a is Switzerland's tax-privileged retirement saving. Contributions are deducted from your taxable income, so part of the payment comes back as a lower tax bill. Move the contribution slider to see the estimated tax saving, the real cost to you, and how the capital could grow until retirement.
Estimated annual tax saving
CHF 1'497
Contributing CHF 7'258 per year effectively costs you about CHF 5'761 — an estimated saving of 20.6% of every franc paid in.
Effective cost per year
CHF 5'761
Contribution minus estimated tax saving
Projected 3a value at 65
CHF 423'347
After 30 years of contributions
Estimated investment growth
CHF 205'607
On CHF 217'740 of contributions
Total tax saved over the period
CHF 44'915
30 × CHF 1'497
Estimated withdrawal tax
CHF 21'013
Reduced lump-sum rate at retirement — rough estimate
Net capital after withdrawal tax
CHF 402'335
What you would keep at retirement
With 3a vs. without 3a
Both lines invest the same annual amount. The 3a line uses your 3a return assumption; the comparison line assumes the same money in a normal taxable account — no deduction, and an approximate 0.8% annual tax drag for wealth tax and tax on investment income, so it compounds at about 3.2%.
Counting the CHF 44'915 of tax you would save along the way and the estimated withdrawal tax at the end, pillar 3a comes out roughly CHF 77'531 ahead of the taxable alternative in this scenario. The approximate tax drag alone costs the taxable account about CHF 53'628 of growth over 30 years.
What these numbers mean
The tax saving comes from your marginal tax rate — around 20.6% in this scenario. The higher your income and the higher your canton's and municipality's tax level, the more a 3a contribution is worth. Because the deduction happens in the year you pay, the money must arrive at your 3a provider before 31 December.
Money in pillar 3a is locked until roughly five years before the ordinary retirement age, with limited exceptions: buying your own home, becoming self-employed, buying into your pension fund, or leaving Switzerland permanently. That illiquidity is the price of the tax break.
At payout the capital is taxed once, separately from your other income and at a reduced rate. Splitting your savings across several 3a accounts and withdrawing them in different years usually keeps that final tax bill lower, because each withdrawal is taxed on a smaller amount.
Whether your 3a should be a savings account or a securities solution depends mostly on your horizon. Over 30 years, the difference between 0.5% and 4% per year is far larger than the annual tax saving.
The comparison line is not just missing the deduction. You only set one return assumption — the one inside 3a. The outside-3a rate is derived from it: the same gross return minus an estimated 0.8% annual tax drag, because a normal taxable account pays wealth tax on its balance every year and income tax on dividends and interest. So it compounds at roughly 3.2% instead of 4%. Pillar 3a capital is exempt from wealth tax and from income tax while you save, and that is the main reason 3a comes out ahead: for most people it makes sense to fill the 3a maximum first, then invest what is left over outside it. All of these figures are rough estimates, not a tax calculation.
Assumptions used
- Maximum deductible contribution for employees with a pension fund: CHF 7'258 for 2026.
- Without a pension fund (typically self-employed): 20% of net earned income, capped at CHF 36'288.
- The tax saving is the difference between your estimated tax bill with and without the deduction, using the same approximate federal, cantonal and communal model as the salary calculator.
- The tax saving is assumed to be spent, not reinvested — so the projection is conservative. Contributions are assumed to be paid once a year at the start of the year.
- Returns are assumed constant every year. Real markets fluctuate, and a 3a savings account currently earns far less than a 3a investment solution.
- Withdrawal tax at retirement is a rough estimate: cantons tax pillar 3a capital separately at a reduced rate, and staggering withdrawals across several years usually lowers it.
- The comparison account assumes you invest the same out-of-pocket amount in a normal taxable account, without any deduction. Its return is not set separately: it is your 3a return minus an estimated annual tax drag.
- That tax drag is about 1% per year: roughly 0% wealth tax on the balance plus income tax on an assumed 2% dividend or interest yield at a typical marginal rate. Pillar 3a capital pays neither wealth tax nor income tax while you save, which is why 3a is shown as more advantageous.
- The tax drag is a single blended approximation, not a tax calculation: real wealth tax is progressive, canton- and municipality-specific and only applies above tax-free allowances, and Swiss private capital gains are generally tax-free.
- Not modelled: fees and product costs, early withdrawal rules, multiple 3a accounts, purchases of BVG years, or the tax effect of a mortgage.
These are approximate, educational estimates — not tax or financial advice. Tax savings and withdrawal taxes depend on your canton, municipality, full income and deductions, and on rules that change over time. Confirm any figures with your cantonal tax administration or a qualified adviser. Your inputs stay in your browser.
Related: tips on choosing a 3aNot all pillar 3a products are built the same. Read the short notes on insurance-based 3a policies, low-cost 3a foundations and the fees worth checking.Frequently asked questions
Short answers to the questions that come up most often with this calculator.
- How much can I pay into pillar 3a?
- Employees with a pension fund may deduct up to the annual maximum set by the federal government. Self-employed people without a pension fund may deduct 20% of net earned income up to a higher ceiling. The current reference figures are shown in the calculator.
- How is the tax saving estimated?
- Your contribution is deducted from taxable income, so the approximate saving is your contribution multiplied by your estimated marginal tax rate. Because that rate is progressive and cantonal, the figure is an estimate.
- Is pillar 3a better than investing outside 3a?
- For most people, filling 3a first is efficient: contributions are deductible and the capital is exempt from wealth tax and from income tax on dividends while you save. The comparison line in the calculator reflects that estimated tax drag on a taxable account.
- Is the 3a withdrawal taxed?
- Yes, at withdrawal a reduced one-off capital tax applies, separately from your ordinary income. Staggering withdrawals across several accounts and years typically reduces it. The figures here are approximate.