Pillar 3a maximum contribution 2025: how to optimise your pension and taxes

In Switzerland, Pillar 3a offers an attractive way to save for retirement while reducing taxes. The contribution limits for 2025 have been adjusted again—good news for those looking to optimise their retirement savings.

This article explains the new maximum contribution limits, the rules for employees and self-employed individuals, and how to make the most of these changes for your personal financial planning.

What is the Pillar 3a maximum contribution for 2025?

The Pillar 3a maximum contribution is the highest amount you can pay into your restricted private pension each year while benefiting from tax advantages.

This cap is legally set to prevent unlimited tax optimisation. Contributions up to this amount are fully deductible from your taxable income, significantly reducing your tax burden.

The maximum contribution varies depending on your employment status. For 2025, the new limits are:

• If you are an employee with a pension fund, you can contribute up to 7,258 CHF (previously 7,056 CHF).

• If you are self-employed without a pension fund or do not meet the BVG entry threshold, you can contribute up to 20% of your net income, with a maximum of 36,288 CHF (previously 35,280 CHF).

The 2025 adjustment is based on the increase in the upper BVG limit, which now stands at 90,720 CHF. The maximum contributions are derived directly from this amount: 8% for individuals with a pension fund and 40% for those without one. This distinction allows those without occupational pensions to invest more in Pillar 3a and partially compensate for the lack of second-pillar benefits.

New from 2025: Retroactive contributions to Pillar 3a

A major change in 2025: for the first time, retroactive contributions to Pillar 3a will be allowed. This new regulation enables you to make contributions for previous years you missed. The first retroactive payments will be possible in 2026 for the year 2025.

This is particularly beneficial for those who could not contribute fully in the past, allowing them to close pension gaps and enjoy additional tax benefits.

How to use the Pillar 3a maximum contribution for tax savings

Pillar 3a offers significant tax advantages: every franc contributed up to the limit reduces your taxable income, potentially saving you hundreds or even thousands of francs depending on your income and canton of residence.

In high-tax cantons (such as Geneva, Vaud, or Bern), the benefits are particularly noticeable, whereas in lower-tax cantons (such as Zug), the absolute savings are smaller. However, regular contributions are beneficial for almost all working individuals, as they reduce taxes and build retirement wealth simultaneously.

Beyond immediate tax reductions, other benefits include:

• Accumulated pension assets and all returns (interest, dividends, capital gains) remain tax-free during the investment period.

• The assets are not subject to income or wealth tax.

• Upon withdrawal (typically at retirement), the capital is taxed at a reduced rate, separately from other income.

To maximise these advantages, consider the following:

• Contribute the maximum amount: Plan your finances to ensure you can deposit the full amount each year.

• Deposit before the deadline: Make your contribution before 31 December to ensure it counts for the current tax year.

• Understand cantonal tax rules: Tax regulations for withdrawals vary by canton, and optimising them—such as through staggered withdrawals—can further reduce taxes.

For personalised advice, consult a financial planner or your bank to ensure you are making the most of your Pillar 3a contributions.

Tips for maximising your Pillar 3a contributions in 2025

Here are some practical strategies to get the most out of Pillar 3a in 2025:

• Contribute early: Pay the full amount at the start of the year or in monthly instalments rather than waiting until December. This allows you to benefit from interest or investment returns for a longer period.

• Choose the right investment option: Decide how your Pillar 3a funds should be invested. Traditional 3a savings accounts offer low but guaranteed interest rates. Pension funds or ETFs, with varying allocations in shares, bonds, and alternative investments, offer higher potential returns depending on your risk profile and investment horizon.

• Don’t miss a contribution: Every missed contribution means lost tax savings and a pension gap. Ensure you contribute the full amount by the end of 2025.

• Consider liquidity: Only invest money you won’t need in the short term, as Pillar 3a funds are generally locked until retirement (with early withdrawals typically allowed only five years before the AHV retirement age). Maintain a sufficient emergency fund in a readily accessible account.

• Use multiple Pillar 3a accounts: By splitting your Pillar 3a savings across multiple accounts, you can stagger withdrawals upon retirement, reducing tax progression. A single account must be withdrawn in full upon closure.

• Compare providers: Use platforms like moneyland.ch to find the best offer. Switching providers is usually straightforward—especially if your current provider offers lower interest rates or higher fees than competitors.

Conclusion: Take advantage of your expanded contribution limits

Pillar 3a remains a key component of financial planning in 2025. With the increased maximum contribution of 7,258 CHF (or 36,288 CHF for self-employed individuals without a pension fund), you have a greater savings capacity than in previous years, allowing for additional tax benefits.

Make the most of this opportunity—plan ahead and fully utilise your Pillar 3a contribution limit in 2025. Best of luck with your retirement savings!