The pillar 3a is an important part of financial planning in Switzerland. You can use this tax-privileged retirement saving category to save on taxes and close financial holes in your retirement plan.
Choosing the right number of pillar 3a accounts plays an important role. Dividing your pillar 3a savings in an optimal way can help you minimize taxes when you cash out your pillar 3a assets, leaving you with more to live on in retirement.
How many pillar 3a accounts can I open?
There is no legal limit on the number of pillar 3a accounts you can have. You can open multiple pillar 3a accounts.
Most Swiss banks and retirement saving apps have a limit of five pillar 3a accounts per customer. However, it is perfectly possible to use more than one bank, enabling you to open much more than five accounts.
How many pillar 3a accounts do I need?
As a general rule, the more accounts you open, the more room you have for financial planning. It is important to understand that pillar 3a accounts can only be cashed out in full. The account is closed once it has been cashed out.
You have to decide which number of pillar 3a accounts makes sense for you based on your situation. However, it is advisable to use at least the five accounts offered by your bank or other service provider.
Opening additional pillar 3a accounts at other service providers gives you even more flexibility. Just be aware that using too many different service providers can make maintaining an overview of your pillar 3a savings more difficult.
Pillar 3a basics you should know
The pillar 3a is a tool to save for retirement. The most important features of the pillar 3a are:
Maximum contributions: There is an annual limit on the total amount you can pay in to pillar 3a savings each year. For employees with an occupational pension fund, the limit is 7258 francs per year (as per 2026). Other limits apply if you do not have a pension fund.
Tax deductions: You can deduct the money you pay into the pillar 3a from your taxable income, in full. The resulting tax savings vary depending on your income and place of residence. Typically, making the maximum pillar 3a contribution can lower an employed individual’s tax bill by 600 to 2000 francs.
Bank account, investments, or cash-value life insurance: Pillar 3a savings can be accumulated in pillar 3a savings accounts, investment solutions, or life insurance policies with cash value.
Limited access: Normally, you can only withdraw savings from the pillar 3a after you turn 60 years old. An early withdrawal is only possible in a few clearly-defined situations.
Should I pay into more than one pillar 3a account at the same time?
Tip: Open multiple pillar 3a accounts right from the start, and divide up the amount you can save evenly between these accounts. That way, all of the accounts can grow at more or less the same pace over the years. When you retire, each account will have more or less the same balance.
Many people do not account for compounding interest and returns. If, for example, your pillar 3a assets are invested and generate a return of five percent per year, on average, then your account balance will double in around 14 years.
Many savers first save up a certain amount in one account, and only open the next account after that. But though widely used, that strategy is not ideal. The reason is that older accounts will accumulate interest or returns over a longer term. Because of that, the balances of accounts that remain invested for longer can become disproportionately high.
Why should I use multiple pillar 3a accounts?
There are two important reasons:
Good to know: When you withdraw your money from the either the pillar 2 (occupational pension funds) or the pillar 3a, a retirement capital withdrawal tax applies. The applicable tax rate is based on the total of all withdrawals made within one calendar year. In most cantons, the more you withdraw in the same tax year, the higher the overall tax rate will be.
More on this topic:
How to find the right pillar 3a saving solution
Compare pillar 3a savings accounts now
Compare pillar 3a retirement funds now
Overview of guides to the pillar 3a
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