News Taxes

New option to pay into pillar 3a from January 1, 2025

From January 1, 2025, a significant change for private pension provision will come into force: the Federal Council has decided to allow retroactive purchases into pillar 3a.

This change allows employed persons in Switzerland to pay contributions into their pillar 3a retrospectively for up to ten years and deduct them for tax purposes - even for years in which no or only partial payments were made.

The most important points at a glance

Retrospective payments: From 2026, missed or incomplete contributions to pillar 3a from the last ten years (from 2025) can be paid in retrospectively and deducted from tax. This means that gaps in contributions can only be claimed from the time the change comes into force and there is no retroactive application.
Additional small contribution: In addition to the regular annual contribution, it is possible to purchase a so-called “small contribution”. For 2025, the regular maximum annual contribution is CHF 7,258.
Conditions: You must have earned income subject to AHV contributions both in the year of payment and in the year for which the subsequent payment is made. In addition, the ordinary annual contribution must have been paid in full for the year in question.

Future adjustments

The future tax treatment of capital withdrawals from Pillar 3 is currently being examined. The Federal Council is expected to present concrete proposals on this at the end of January 2025. We will keep you up to date on all relevant developments.

You can find the Federal Council's full press release here.

If you would like individual advice or further information, we will be happy to help you.

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Remo Merz, 02.12.2024

Keywords: Pillar 3a, pension provision, taxes, tax tips, tax declaration