The 3rd pillar A (tied pension provision) lets you deduct your contributions from taxable income, within limits set each year by the Confederation. As December approaches, a few points deserve your attention.
The payment must arrive before 31 December
Only amounts credited to your account or policy before the end of the year are deductible for that year. An order placed too late may be booked in January: allow a few working days.
A ceiling that depends on your status
The maximum amount differs depending on whether you are an employee affiliated to a pension fund or a self-employed person without a 2nd pillar. It is adjusted periodically: check the current ceiling with your institution or the tax authority.
Bank or insurance?
A 3a account or securities offer flexibility; an insurance solution can add cover in case of loss of earnings or death. The choice depends on your goals, your investment horizon and your family situation.
Think about withdrawal
3a assets are taxed separately on withdrawal, at a progressive rate that varies by canton. Spreading your assets over several accounts lets you stagger withdrawals over several years and limit the tax burden.
Our simulator on the Pension planning & retirement page gives an order of magnitude for the tax saving and the capital at maturity.
General information only, not personalised advice. Rules and deadlines can change: please check them against your own situation.