Pillar 3a payments: What you should bear in mind when making withdrawals
The targeted disbursement of Pillar 3a gives you the necessary flexibility for your pension provision and saves you on taxes. We show you when you can have your Pillar 3a paid out, what taxes are due, and how you can systematically reduce your tax burden.
Anyone who has made annual contributions to a Pillar 3a account will eventually reap the rewards of their efforts. To ensure that the joy lasts, there are a few things you need to bear in mind when withdrawing money from Pillar 3a. Whether you decide to withdraw funds from your 3a pillar early – for example, to purchase a home – or plan to receive the payment as part of your retirement. Poor planning can result in high taxes on the capital paid out. On the other hand, with the right pension strategy, you can save a lot of money and also have the financial flexibility you need.
When can I have my Pillar 3a paid out?
Pillar 3a is a tied pension in Switzerland. This means that withdrawal is only possible under certain legal conditions.
Regular withdrawal up to retirement
Under the standard rules for withdrawing funds from a Pillar 3a account, the funds may be withdrawn no earlier than five years before the standard retirement age (65) and no later than upon reaching retirement age.
Withdrawal after retirement
If you continue to work after retirement and are subject to OASI contributions, you can defer paying out your Pillar 3a account. The following applies:
- Deferral possible: Up to five years beyond the regular retirement age, but no later than the age of 70.
- Additional contributions allowed: Contributions to Pillar 3a remain possible during the deferral period.
- Tax advantage: Additional contributions can still be deducted from taxable income.
Payments are subject to written confirmation from the employer or, in the case of self-employment, up-to-date confirmation from the OASI compensation fund as proof to the bank or insurer.
Important for women born between 1961 and 1964
As part of the OASI reform (OASI21), the reference age for women will be raised from 64 to 65. The increase has been gradual since the beginning of 2025 and affects women born after 1960. Reference age depending on year and year of birth:
- Up to 2024: Born in 1960 or earlier: Retirement at age 64
- 2025: Born in 1961: Retirement at age 64 and 3 months
- 2026: Born in 1962: Retirement at age 64 and 6 months
- 2027: Born in 1963: Retirement at age 64 and 9 months
- From 2028: Born in 1964 or later: Retirement at age 65
Can I have my Pillar 3a paid out early?
Yes, an advance withdrawal of Pillar 3a before age 60 is possible in the following situations:
- Owner-occupied residential property: When buying your own home, renovating, or repaying your mortgage. Excluded: The purchase of vacation apartments or investment properties.
- Self-employment: 12 months after becoming self-employed (sole proprietorship or partnership). Excludes: Formation of a limited liability company or joint stock company
- Emigration: Final departure from Switzerland and confirmation of residence from the destination country
- Purchase of Pillar 2 benefits (pension fund): When Pillar 3a assets are transferred to Pillar 2 assets
- Disability pension: Receipt of a full disability pension resulting in a disability level of at least 70%
- Death: In the event of the death of the insured
The advance withdrawal of Pillar 3a is not automatic; it must be requested on the basis of an application to a bank or insurer.
What taxes are due when I pay out my Pillar 3a account?
Withdrawal of pension assets from Pillars 2 and 3 is taxed via lump sum tax. This is calculated separately from other income and is progressive. The higher the pension assets paid out in a year, the higher the tax rate used as the basis for the calculation.
The tax is levied at the federal, cantonal, and municipal levels, with differences in cantonal and municipal tax rates being particularly significant.
What tax rates apply to the payment of Pillar 3a money in my canton?
Tax burden for a single person with no denomination – 2026 tax year
| Canton | Place of residence | CHF 50,000 | CHF 100,000 | CHF 250,000 | CHF 500,000 | CHF 1,000,000 |
| Aargau | Aarau | 3.12% | 4.85% | 7.09% | 8.22% | 8.77% |
| Appenzell Innerrhoden | Appenzell | 2.38% | 3.31% | 4.60% | 5.14% | 5.34% |
| Appenzell Ausserrhoden | Herisau | 7.56% | 7.94% | 8.96% | 9.91% | 11.14% |
| Basel-Landschaft | Liestal | 3.46% | 3.84% | 4.86% | 6.72% | 9.56% |
| Basel-Stadt | Basel | 3.66% | 5.29% | 8.26% | 9.45% | 9.97% |
| Bern | Bern | 3.50% | 4.63% | 6.53% | 8.26% | 9.62% |
| Fribourg | Fribourg | 1.96% | 3.24% | 6.96% | 9.30% | 10.40% |
| Geneva | Geneva | 2.53% | 4.13% | 6.22% | 7.41% | 8.11% |
| Glarus | Glarus | 4.79% | 5.17% | 6.19% | 6.73% | 6.93% |
| Graubünden | Chur | 2.91% | 3.28% | 4.31% | 5.76% | 5.96% |
| Jura | Delémont | 5.39% | 6.17% | 8.56% | 9.64% | 10.11% |
| Lucerne | Lucerne | 2.27% | 3.76% | 5.45% | 6.22% | 6.53% |
| Neuchâtel | Neuchâtel | 4.89% | 5.68% | 7.83% | 8.46% | 8.75% |
| Nidwalden | Stans | 2.67% | 3.64% | 5.01% | 5.55% | 5.74% |
| Obwalden | Sarnen | 5.28% | 5.66% | 6.68% | 7.22% | 7.42% |
| St. Gallen | St. Gallen | 5.51% | 5.88% | 6.91% | 7.45% | 7.65% |
| Schaffhausen | Schaffhausen | 1.98% | 3.18% | 4.83% | 5.37% | 5.57% |
| Schwyz | Schwyz | 1.14% | 2.15% | 5.26% | 7.77% | 9.55% |
| Solothurn | Solothurn | 3.48% | 4.97% | 6.97% | 7.64% | 7.84% |
| Thurgau | Frauenfeld | 6.23% | 6.61% | 7.63% | 8.17% | 8.37% |
| Ticino | Bellinzona | 4.02% | 4.40% | 5.42% | 7.10% | 8.09% |
| Uri | Altdorf | 3.87% | 4.24% | 5.27% | 5.81% | 6.00% |
| Vaud | Lausanne | 3.34% | 4.59% | 6.95% | 8.39% | 9.06% |
| Valais | Morals | 4.36% | 4.74% | 6.13% | 8.78% | 10.30% |
| Zug | Zug | 1.77% | 2.81% | 4.60% | 5.76% | 6.28% |
| Zurich | Zurich | 4.50% | 4.88% | 5.90% | 7.16% | 11.16% |
Source: Tax calculator of the Federal Tax Administration (FTA) – swisstaxcalculator.estv.admin.ch
Sample calculation: A comparison shows how much money you can save in the canton of Zurich (2026 tax year):
- Scenario A – All at once: You withdraw CHF 500,000 in one year. At a tax rate of 7.16%, you pay CHF 35,800 in taxes.
- Scenario B – staggered over 2 years: You receive CHF 250,000 twice. The tax rate is reduced to 5.90%. You only pay CHF 29,500 in total.
Your gain: Simply by spreading the payments over two years, you’ll save CHF 6,300 which you can set aside for your retirement.
Expert tip: The more 3a accounts you have, the more flexibly you can spread out your withdrawals over several years and reduce your tax bill even further.
How can I save on taxes when I pay out my Pillar 3a account?
The most important lever for saving on taxes when pension assets are paid out is to keep tax progression as low as possible. The aim must therefore be to withdraw Pillar 3 assets not all at once, but on a staggered basis.
- Keep tax progression low: You can open several Pillar 3a accounts so that payments can be staggered over several years.
- Staggered payments over several years
- Many cantons limit the number of payment years; for example, only four years of staggered payments are permitted in some cantons.
- Withdrawals from Pillar 2 (pension fund) and Pillar 3a in the same year are added together, which can lead to a sharp increase in taxes.
Why is it worth having several 3a accounts?
It makes sense to have multiple 3a accounts because they allow you to withdraw your retirement savings in installments. This is important because, when a Pillar 3a account is closed, the entire balance must always be withdrawn in full and in a single lump sum. If you have several accounts, you can split the payment and withdraw the pension assets in several installments.
Should I have Pillar 2 paid out in the same year?
Whenever possible, pension assets from Pillar 2 (pension fund) and from Pillar 3a should not be withdraw in the same year. Since the two payments are added together, a higher tax rate will be applied.
You should therefore plan for withdrawals from both pillars in different tax years in order to keep the tax progression as low as possible.
Why should you plan the payment of your Pillar 3a early?
It’s worth planning your Pillar 3a payment early because you can use several Pillar 3a accounts to stagger withdrawals over several years. This way, you can better adapt the payment to your personal situation, remain financially flexible, and at the same time save a lot on taxes. For this reason, it makes sense to deal with this issue early on and consult an expert if necessary.
Further questions on paying out Pillar 3a
When is an advance withdrawal of Pillar 3a possible?
Early withdrawal of funds from a Pillar 3a account is generally permitted no earlier than five years before the standard OASI reference age.
An advance withdrawal at an earlier date is only permitted in clearly defined exceptional cases, such as when buying owner-occupied property, when taking up self-employment, or when emigrating. We explain these statutory exceptions in detail in the section entitled “Can I have my Pillar 3a paid out early?”.
How high are the taxes when my Pillar 3a account assets are paid out?
The amount of tax depends on the canton of residence, the municipality, and the amount of capital you withdraw.
In Switzerland, your Pillar 3a payment is taxed separately from your other income. The so-called lump sum tax applies. Although this rate is lower, it increases progressively: The higher the amount paid out in a year, the higher the tax rate.
Is it worth making a staggered withdrawal?
Yes, a staggered withdrawal is almost always worthwhile.
If you manage Pillar 3a in several accounts and spread the payments over several tax years, you can significantly reduce your tax progression. Staggered withdrawals are therefore one of the most effective ways to save on taxes when you retire.
Written by:
Nadine Graf
Nadine Graf is a theme manager and writes texts for AXA on topics related to insurance and beyond.
