Finding the best pillar 3a in Switzerland
The difference between choosing right and choosing convenient? About CHF 50,000 over your career.
A high-cost provider charging 1.2% annually versus a low-cost option at 0.39% might not sound like much. But over 30 years on CHF 200,000? That's CHF 1,600 versus CHF 780 in yearly fees. The money you're losing to fees should be compounding for your retirement.
Look, most pillar 3a products are wrapped in unnecessary complexity. After building and exiting businesses here, I can tell you: pillar 3a comparison really comes down to three things: fees, investment options, and your time horizon. Everything else is just noise to justify higher prices.
What is pillar 3a and why should you care?
Pillar 3a is Switzerland's voluntary retirement savings with a massive tax break attached. It's the third pillar alongside mandatory AHV/AVS (pillar one) and your occupational pension (pillar two).
Here's why it matters: every franc you contribute comes straight off your taxable income. If you're earning CHF 120,000 in Zurich and max out the 2026 contribution at CHF 7,258, you save about CHF 2,000-2,500 in taxes that year. Do this for 30 years? That's CHF 60,000-75,000 back in your pocket before you even count investment returns.
The numbers you need to know for 2026:
- Maximum if you're employed with a pension fund: CHF 7,258
- Maximum if you're self-employed without a pension fund: 20% of net income, up to CHF 35,288
- Deadline: December 31st each year (miss it, lose it)
- Earliest withdrawal: 5 years before AHV retirement (currently 59 for women, 60 for men)
- Tax on withdrawal: One-time reduced rate, separate from your regular income
The Swiss Federal Social Insurance Office adjusts these limits yearly, usually nudging them up with inflation.
The two pillar 3a options (and which one you probably need)
3a savings accounts
3a savings accounts guarantee your capital but offer minimal growth. Think 0.5% to 1.25% yearly across Swiss banks. Your money's safe but basically standing still.
Go with savings if:
- You're 5-10 years from retirement
- You can't stomach seeing your balance drop temporarily
- You value sleep over optimization
UBS, PostFinance, and cantonal banks run this space. Honestly, these rates barely beat inflation. Your purchasing power grows at a snail's pace. Check our savings account comparison if you want details on regular savings too.
3a investment funds (securities)
3a investment funds throw your money into stocks, bonds, and other assets. Yes, they bounce around short-term. But over 20-40 years? They crush savings accounts.
Go with investment funds if:
- You have 10+ years until you retire
- You get that markets drop sometimes (and recover)
- You want your money actually working for you
The math is brutal: CHF 7,258 yearly at 5% growth versus 1% over 30 years? That's a CHF 180,000 difference. So when people talk about the "safe" choice, understand what you're paying for that feeling. Over decades, the supposedly risky option is actually safer for your retirement lifestyle.
What actually matters when comparing pillar 3a
Total Expense Ratio (TER)
TER is the yearly cost of running your investment fund. Management fees, custody fees, admin costs, all rolled into one percentage. Lower TER = more of your money stays yours and compounds.
What you'll see in 2026:
- Low-cost digital providers (Finpension, VIAC): 0.39-0.49%
- Mid-range providers (frankly, Selma): 0.45-0.65%
- Traditional banks: 0.80-1.50%
Here's the damage: 0.39% versus 1.20% on CHF 100,000 = CHF 810 yearly. Run that for 20 years with compounding? You're looking at tens of thousands of francs just evaporating into fees.
Investment strategy and allocation
Most providers let you choose equity allocations from 0% to 99%. More stocks = bumpier ride, but better long-term results.
What makes sense for your timeline:
- 20+ years out: 80-99% equities
- 10-20 years: 60-80% equities
- 5-10 years: 40-60% equities
- Under 5 years: Honestly, consider a savings account
Pro tip: Passive index funds (just tracking the market) beat active managers after fees most of the time. Don't pay extra for someone to actively pick stocks. The data on this is pretty clear.
Performance track record
Yeah, past performance doesn't predict the future. But 3-5 year track records tell you if a fund is doing what it says it does.
What to actually look at:
- How they perform against benchmarks (not just "we made 8%!")
- Returns after fees (the number that actually matters)
- How they handle different market conditions
Here's the thing: the cheapest funds usually win long-term. Because fees compound against you every single year, silently eating your returns.
Provider features that actually matter
Beyond just fees:
- Multiple accounts: You want 2-5 accounts to stagger withdrawals (saves taxes at retirement)
- Contribution flexibility: Can you add money whenever or is it rigid?
- Digital experience: How good are the app and reporting?
- Sustainability options: ESG/sustainable funds if that's your thing
- Transfer fees: Should be CHF 0 to move providers (anything else is a red flag)
The pillar 3a mistakes everyone makes
Mistake 1: Just using your regular bank
Most people open their 3a where they already bank. Super convenient, super expensive. Traditional banks charge 2-3x what digital providers do for basically the same thing. Your bank loyalty is costing you real retirement money.
Mistake 2: Playing it "safe" when you're 30
A 30-year-old in a savings account 3a is sacrificing potentially hundreds of thousands. Yes, stock markets drop. But you can't touch this money for 30+ years anyway, so who cares about temporary dips?
Mistake 3: Opening just one account
One account seems simpler. You'll hate yourself at retirement. Switzerland taxes 3a withdrawals separately from income, but withdraw everything in one year? You hit a higher tax bracket on that lump sum.
The fix: Open 3-5 accounts throughout your career. Withdraw one per year when you retire. Each smaller withdrawal stays in a lower tax bracket. This alone can save you tens of thousands.
Mistake 4: Missing the December 31st deadline
Your contribution has to land by December 31st. No extensions, no excuses. Set a reminder for early December and max it out. Miss a year? That year's tax deduction is gone forever. You can't make it up later.
When to switch pillar 3a providers
Switching is usually free and pretty painless. Move if:
- Your current provider's fees are way higher than alternatives
- You want to consolidate scattered accounts
- You need investment options they don't offer
- Their service has gone downhill
How it works: Tell your new provider, they do the paperwork. Takes 2-4 weeks. Your investments usually transfer as-is, though some providers make you sell and rebuy (annoying but not a dealbreaker).
Special situations worth knowing
If you're self-employed (no pension fund)
Your max jumps to 20% of net income, up to CHF 35,288 yearly. That's 5x the regular limit. Pillar 3a is ridiculously good for entrepreneurs and freelancers.
Leaving Switzerland
Moving away permanently? You can cash out your 3a early. Tax depends on where you're going and the treaties involved. EU/EFTA moves face Swiss withholding tax (usually 5-10%, varies by canton) that you might get back depending on your new country's deal with Switzerland.
The Federal Tax Administration has details on international tax scenarios.
Other early withdrawal reasons
Besides leaving Switzerland, you can tap your 3a early for:
- Buying your primary residence in Switzerland
- Starting your own business
- Full disability (IV/AI)
- Every 5 years if you're self-employed
Each withdrawal gets taxed, so plan it out.
What I actually do with my own 3a
I split my pillar 3a across multiple accounts with low-cost providers using passive index strategies. Here's why:
- Fees compound brutally over 25+ years, so I only use providers under 0.45% TER
- High equity allocation makes sense when I can't touch this money for decades
- Multiple accounts from day one sets up the tax-smart withdrawal later
- Index funds, not active managers because the data is pretty clear on this
This isn't advice for you specifically. If you're 55, your strategy should look totally different than if you're 30. But for long time horizons, the math overwhelmingly favors low-cost equity funds over savings accounts.
How we actually compare these products
We focus on stuff you can measure:
Fee analysis
We add up TER, account fees, and hidden charges. All-in costs show you what you're really paying.
Performance assessment
We track returns after fees versus benchmarks. Risk-adjusted performance across different market conditions.
Feature comparison
Investment options, digital tools, customer service, flexibility. The stuff you'll actually use.
Provider stability
FINMA compliance, backing, track record. You want these people around in 30 years.
For deeper dives, check our best 3a savings accounts and best 3a investment funds.
Questions everyone asks
What's the best pillar 3a in Switzerland?
Depends on your timeline and stomach for volatility. Got 10+ years? Low-cost investment providers like Finpension or VIAC usually win on fees and options. Close to retirement? Cantonal banks and PostFinance offer decent savings account rates with guaranteed capital.
What's the pillar 3a max for 2026?
CHF 7,258 if you're employed with a pension fund. Self-employed without a pension fund? Up to 20% of net income, max CHF 35,288. Swiss authorities adjust these yearly, usually up slightly with inflation.
Savings account or investment fund?
Investment funds if you have 10+ years and can handle seeing your balance drop temporarily for better long-term returns. Savings accounts if you're 5-10 years from retirement, can't tolerate any losses, or just want guaranteed capital over growth.
Can I have multiple 3a accounts?
Yes, and you should. Multiple accounts (usually 3-5) let you withdraw one per year in retirement, keeping each withdrawal in a lower tax bracket. This saves serious money.
How different are the fees between providers?
Investment funds range from 0.39% to 1.50% yearly. Digital providers (Finpension, VIAC) charge 0.39-0.49%. Traditional banks hit you for 0.80-1.50%. Savings accounts don't charge management fees but pay such low interest that inflation often beats them.
What happens to my 3a if I leave Switzerland?
You can cash it out early. Withholding tax (5-10%, depends on your 3a's canton) applies. You might get that back in your new country depending on tax treaties. EU/EFTA has different rules than other destinations.
When can I actually withdraw my 3a?
5 years before AHV retirement age (currently 59 for women, 60 for men) or later. Early withdrawal works for: buying your primary home, starting a business, leaving Switzerland permanently, or full disability. Each withdrawal gets taxed at a reduced rate.
VIAC or Finpension?
Both are excellent with similar low fees (around 0.40%). Differences are in specific fund choices, app design, and extra features. Both use passive indexes and let you go high on equities. Pick whichever interface you prefer. Both are top-tier.
