Retroactive purchase of Pillar 3a benefits

Since the start of 2026, a new rule has applied to Pillar 3a: If you missed your annual contribution or have not used it up, you can now make retroactive purchases into Pillar 3 – subject to certain conditions.

In addition to state pension provision (Pillar 1) and occupational benefits insurance (Pillar 2), private retirement provision (Pillar 3) is becoming increasingly important in Switzerland: The longer you live, the less you have to live on from your OASI and pension fund pensions. Pillar 3a is the first way for the gainfully employed to close this gap. Above all, it is very attractive from a tax perspective: Payments into Pillar 3a can be deducted from taxable income. The maximum annual amount for gainfully employed persons with a pension fund is CHF 7,258 (as at 2026).

A change in the law in 2025 has significantly eased the rules on Pillar 3a: Previously, payments into Pillar 3a for a given year had to be made by December 31 of the same year at the latest. Employed persons can now fill gaps in Pillar 3a from previous years through retroactive purchases. This brings tax advantages and strengthens your retirement provision.

How do contribution gaps arise?

Contribution gaps arise if the maximum Pillar 3a amount is not exhausted. Maybe the money was tight due to training or travel, or maybe the deposit was simply forgotten. The consequences: Less tax savings, less retirement capital, missed earnings opportunities.

When are retroactive payments into Pillar 3a possible?

From 2026. That means: 2025 will be the first year for which you will be able to pay in 3a contributions retroactively. It is not possible to make retroactive payments for 2024 or earlier. This is because pension providers in Switzerland will only systematically exchange information starting from the 2025 contribution year. This uniform database is needed to determine who has already exhausted the maximum amount and who has not.

What conditions apply to retroactive purchases into Pillar 3a?

• Maximum amount for the current year used up: You must first pay the full contribution for the current year. Only then can any contribution gaps from previous years be compensated.
• Income subject to OASI contributions in the year of the gap: Pillar 3a is only available to persons subject to OASI contributions. Anyone who was not subject to OASI due to lack of earned income in the year in which the gap occurred should not have paid in at all – consequently there is nothing to pay retroactively.
• Year with a gap not more than 10 years ago: A retroactive payment is possible for up to 10 years. Example: Any difference in contribution year 2025 can be settled by 2035 at the latest.
• Maximum of one retroactive payment per year with a gap: For retroactive purchases into Pillar 3a, it is not possible to split the amount – only one retroactive payment is permitted for each year with a gap. On the other hand, a large retroactive payment into Pillar 3a can be made to fill several years with gaps at once.
• Pension benefits not withdrawn yet: If you defer retirement and continue working, retroactive payments are permitted up to five years after the reference age. However, this option ends with the first withdrawal of 3a assets starting at age 60.

What are the advantages of making a retroactive payment into Pillar 3a?

1. More pension capital

With retroactive Pillar 3a purchases, your retirement assets can be built up in a targeted manner. You could also invest part of your capital in well-diversified equities – allowing you to benefit from attractive return opportunities. This is particularly true for a long investment horizon of several decades.

2. Lower taxes

You can deduct the entire amount that you pay into Pillar 3a in the current tax year from your taxable income – including the retroactive payment. Here’s how to break the tax progression: In a year with lower earned income, you could deliberately pay a smaller amount into Pillar 3a in order to fill this gap in a high-income year.

3. More flexibility

The easing of Pillar 3a rules makes it easier to balance your finances over the different stages of life. Are you planning a second training course or a longer trip? Or do you want to cut back on your career while your children are still young? The option of retroactive Pillar 3a purchases relieves you in economically challenging times.

How do retroactive purchases into Pillar 3a work?

The graphic uses a fictitious example to illustrate how gaps in Pillar 3a can be systematically filled.

2024: Lara starts to pay her savings into Pillar 3a. This is enough for almost half of the annual maximum amount. The gap of CHF 4,000 will remain because no Pillar 3a payments are possible for gaps from 2024 or earlier.

2025: Lara can once again only pay in a partial amount into Pillar 3a. But since retroactive purchases have been possible since January 1, 2025, she now has 10 years to fill the gap of CHF 3,000.

2026: This time Lara can save a little more money. However, it is not enough for the annual maximum amount, leaving a  gap of CHF 2,000.

2027: Finally Lara manages to pay in the maximum amount. This means that she can now also make additional purchases. She can fill the smaller of the two gaps (2026). Thanks to the high Pillar 3a deposits of over CHF 9,000, she will pay noticeably less in taxes for 2027.

2028: Money’s running out again – Lara pays in CHF 1,500 less than she should. As it does not reach the maximum amount, a purchase is not permitted.

2029: Lara can pay in the full maximum amount. Although there is not enough for more, at least there is no new gap.  

2030: In this financially successful year, Lara can pay in the maximum amount again. She can also fill two years with gaps (2025 and 2028) at the same time. Lara therefore no longer has any gaps in Pillar 3a that can be compensated for.

What do I need to do to close my 3a gaps?

First, you must apply to the occupational benefits institution for a benefits purchase, specifically for a particular year with a gap. If there are gaps over several years, a separate application is required for each gap. If all conditions are met, your occupational benefits institution approves the purchase – and there is nothing to stand in the way of the retroactive payment. Pay in this amount at the latest by the last bank working day of the year.

Please note: You have only one chance to make a retroactive payment for each year with a gap. No further purchase at a later date is permitted. Is there currently not enough money to completely fill the gap? Then consider carefully whether you’d rather wait to make a purchase. 

Is it really worthwhile to buy into Pillar 3a?  

Yes. If you can, you should definitely close any contribution gaps in Pillar 3a – if only for the tax advantages. If there are several years with gaps, you could stagger the purchase to further optimize the effect on your taxes. Ideally, you should make larger purchases in years with particularly high income. 

Do you dream of buying a house later, becoming self-employed or emigrating? Then you don’t have to worry about tying up liquid capital in Pillar 3a: By law, your money remains available for these specific purposes (“advance withdrawal”). In this case, Pillar 3a is an excellent savings plan for your life goal.