Pillar 3a
Pillar 3a is Switzerland's tax-privileged voluntary retirement savings scheme. Employed residents may pay in a capped amount each year and deduct it from taxable income; the money is normally locked until roughly five years before retirement age.
In detail
Contributions can be held as a savings account or invested in securities funds. Because the deduction applies in the year of payment, many people contribute before 31 December to reduce that year's tax bill.
Early withdrawal is only allowed in defined cases — buying owner-occupied property, becoming self-employed, or permanently leaving Switzerland. Holding several 3a accounts can reduce tax on staggered withdrawal later.
- Contributions are deductible from taxable income up to an annual maximum.
- Funds are locked until about five years before retirement, with limited exceptions.
- Multiple accounts allow staggered withdrawals, which can lower withdrawal tax.
Related terms
A Steuerauszug is the annual tax statement issued by a Swiss bank or broker. It lists year-end balances, securities holdings, interest and dividends in the format Swiss tax authorities expect, so the figures can be copied directly into a tax return.
Net worthNet worth is the value of everything you own minus everything you owe. Assets include bank balances, investments, pension capital and property; liabilities include mortgages, loans and credit-card debt. The difference is your true financial position.
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