Yes. Pillar 3a gives you the tax deduction up to the annual cap; Pillar 3b is unrestricted and can be used in parallel for any additional saving or insurance.
The Swiss pension system rests on three pillars: state AHV (Pillar 1), occupational pension (Pillar 2), and private pension (Pillar 3). Pillar 3 is where you take control — and where every Swiss resident should pay attention.
Pillar 3a — tax-privileged retirement savings
Pillar 3a (gebundene Vorsorge) is a restricted retirement account with major tax benefits. In 2026 employees can contribute up to CHF 7,258; self-employed without a Pillar 2 can contribute up to 20% of net income, capped at CHF 36,288.
- Fully deductible from federal, cantonal, and communal income tax.
- No wealth tax on the balance, no income tax on returns.
- Withdrawal restricted to retirement, buying a primary residence, leaving Switzerland, becoming self-employed, or full disability.
Pillar 3b — flexible private savings
Pillar 3b (freie Vorsorge) covers any private saving or insurance product without the contribution cap. There is no federal tax deduction (a few cantons grant small ones), but you have full flexibility on when and how to withdraw.
Digital providers vs traditional banks
Banks like UBS, ZKB or PostFinance still dominate Pillar 3a, but their fund fees often exceed 1% per year. Modern app-based providers offer index-based 3a portfolios with 99% equity allocation and low TER:
- VIAC — fees from 0.44%, up to 99% equities, integrated with Bank WIR.
- Finpension 3a — fees ~0.39%, institutional Swisscanto funds, up to 99% equities, 5 portfolios per user.
- Frankly (ZKB) — clean app, fees 0.44%.
- Truewealth 3a — passive ETF strategies.
Over 30 years, switching from a 1.2% bank fund to a 0.4% digital 3a can mean tens of thousands of francs in extra retirement capital.
How to optimise withdrawal
Open multiple 3a accounts (typically 3–5) and stagger withdrawals across different tax years to break tax progression. Withdrawals are taxed separately at a reduced rate, but cumulative amounts in the same year push you up the scale.
Bottom line
Use Pillar 3a aggressively for the tax deduction and long-term equity growth. Use Pillar 3b for flexibility, life insurance bundles, or surplus savings beyond the 3a cap. Track all your pension assets — including 3a balances at VIAC, Finpension and your bank — alongside your everyday accounts in Finch.
Last reviewed by the Finch editorial team on .
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