Purchases into pillar 3a from 2026

Initial situation

As one of the three pillars of the Swiss social insurance system, pillar 3a tied pension provision offers individuals the possibility to build up private retirement savings whilst taking advantage of tax benefits. Consequently, anyone who earns an income from gainful employment or income in lieu of gainful employment that is subject to OASI contributions in Switzerland is able to top up their pension provision individually by paying in tax-deductible contributions.

Following the approval of the Ettlin motion submitted on 19 June 2019 (19.3702, enable purchases into pillar 3a), the Federal Council was instructed to establish the necessary conditions to give holders of pillar 3a accounts and policies who were unable to pay the maximum contributions into pillar 3a in previous years the opportunity to close contribution gaps in the future by making a retroactive payment and deducting the amount from their taxable income in full in the year of payment (3a purchase).

The Federal Council adopted the amendment to the Ordinance on Tax Relief on Contributions to Recognised Pension Schemes (OPO 3) on 6 November 2024. The amendment will come into force on 1 January 2025. Nevertheless, retroactive payments into pillar 3a will not be possible until 2026. Retroactive payments can only be made for missed or incomplete contributions corresponding to the year 2025 onwards.

Conditions for making voluntary purchases from 2026

The following specific conditions must be taken into account in order to check the potential for making retroactive payments into pillar 3a from 2026:

• Earned income requirement: 
  A retroactive payment is only possible if income subject to OASI contributions was earned in the year in question. In other words, the taxpayer would, in principle, have been entitled to pay into pillar 3a in the relevant year, but did not make the corresponding payment or only made a partial payment.

• Ten-year restriction:
  Retroactive payments are only possible for the last ten years. This means that payments for a particular year can only be made retroactively for up to ten years afterwards.

• Maximum pillar 3a amount:
  In the year the retroactive payment is made, the ordinary maximum pillar 3a amount must first be utilised in full. Retroactive payments are only permitted if the maximum contribution for the current year has already been paid.

• Limit on retroactive payments: 
  Only one retroactive payment can be made per year. However, payments can cover several years with contribution gaps if the taxpayer failed to pay in the maximum amount in several different years.

• Maximum limit for self-employed persons:
  For self-employed persons without a pension fund, the limit of the “small maximum pillar 3a contribution amount” continues to apply to retroactive payments. Even if an individual could pay in the larger pillar 3a amount, the smaller maximum contribution amount remains valid for retroactive payments.

• Withdrawals before reaching the reference age:
  The right to make retroactive payments lapses if capital is withdrawn from pillar 3a up to five years before the statutory reference age. On the other hand, if no assets are withdrawn, payments can continue to be made for up to five years after reaching the statutory reference age.