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What is the maximum amount for the 3rd pillar in 2024?

Felix Niederer

Employed persons with a pension fund may pay in a maximum of CHF 7'056 in 2024. Self-employed persons without pension funds may pay in 20% of their net income, up to a maximum of CHF 35'280 per year.

Whenever possible, use the maximum amount for your Pillar 3a. In this way, you not only ensure a financially relaxed retirement age, but can also save a maximum of taxes, as the payments into Pillar 3a can be deducted from your taxable income.

These are the maximum Pillar 3a amounts in 2024:

  • Employed persons with pension funds may pay in a maximum of CHF 7'056.
  • Self-employed persons without pension funds may pay in 20% of their net income, up to a maximum of CHF 35'280 per year.

How often do the maximum amounts in the third pillar change?

Since the introduction of Pillar 3a in 1985, the Federal Social Insurance Office has made adjustments at varying intervals. In the past, Pillar 3a maximum amounts were usually increased every two years.

With True Wealth's Pillar 3a, you no longer have to worry about the 3a maximum amounts. Clients who have activated the "automatic top-up" function benefit from the automatic exhaustion of the respective maximum amount. In short, all deposits are credited to the Pillar 3a up to the respective 3a maximum amount; what is over and above this amount is invested in the free portfolio. Use of this function is, of course, voluntary.

The tax advantages of Pillar 3a

  1. Tax deduction for annual savings contributions: Annual contributions can be deducted from taxable income up to the statutory maximum, reducing income tax.
  2. Tax-free pension provision: No wealth, income or withholding taxes are payable for the entire duration of the retirement provision in Pillar 3a.
  3. Reduced tax rate on payout: When the saved capital is paid out, a reduced capital tax rate applies, which is independent of personal income tax.

Calculate your individual Pillar 3a tax advantage: Click here for the Pillar 3a tax calculator

What makes True Wealth's Pillar 3a so special?

When you manage your Pillar 3a with us, a lot of things happen automatically in the background that you would otherwise have to take care of individually. The most important aspects at a glance:

  • Automatically save taxes. We make it easy for you to never forget a deposit or the current maximum amount again. Simply activate the automatic top-up function.
  • Even cheaper than usual – 0.0% management fee. We have largely automated all our investment processes and want you to share in the benefits of digitalization. That's why we waive any management fees in the third pillar.
  • Low product costs (TER). We screen the investment universe for the best instruments. ETFs and index funds are used to implement your investment strategy. On average, the TER is only 0.15%.
  • We go all out for security: the securities and funds of your Pillar 3a are held in custody at Basellandschaftliche Kantonalbank (BLKB) – a bank with a state guarantee.
  • Several 3a accounts for staggered, tax-efficient payouts included. We open up to five 3a accounts for our clients in the background over the years.

How do I open True Wealth's securities pillar 3a?

Open your 3a account in just a few steps by downloading the True Wealth app or opening the account directly via your web browser.

Click here to go to True Wealth's Pillar 3a.

Disclaimer: We have taken great care with the content of this article. Nevertheless, we cannot exclude the possibility of errors. The validity of the content is limited to the time of publication.

About the author

Felix Niederer

Founder and CEO of True Wealth. After graduating from the Swiss Federal Institute of Technology (ETH) as a physicist, Felix first spent several years in Swiss industry and then four years with a major reinsurance company in portfolio management and risk modeling.


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