Contributions to Pillar 3a can be deducted from taxes. Employees can deduct amounts paid into Pillar 3a up to a maximum of CHF 7,056 (2024) from their taxable income. For self-employed individuals not affiliated with a pension fund, the maximum deductible amount is CHF 35,280 (2024).

Recommendation: It is definitely worthwhile to contribute the maximum amount to Pillar 3a each year whenever possible. The money paid into this retirement savings multiplies its benefits. Not only do you have more money for retirement, but the deductions also significantly reduce your current tax burden. Additionally, if you make an early withdrawal of the capital, you benefit from a reduced tax rate (one-fifth of the normal tax rate).