---
title: "Pillar 3a: who can pay in, how much, into how many accounts, and how to withdraw?"
url: https://www.ibani.com/en/guides/pillar-3a-rules-residents-who-can-pay-in-staggering-bank-insurance
lang: en
date_modified: 2026-11-13
author: "Brice DELHOME"
---

![Several pillar 3a piggy banks lined up by withdrawal age, with the ibani mascot](https://www.ibani.com/images/pilier-3a-regles-residents-qui-peut-verser-echelonner-banque-assurance.png)

# Pillar 3a: who can pay in, how much, into how many accounts, and how to withdraw?

 Reading time: 14 minutes | **Updated: 13 November 2026**

By [Brice DELHOME](https://www.ibani.com/en/author/brice-delhome)

📌 In short: five rules that cost dearly when ignored

-   **The ceiling depends on whether you belong to a pension fund, not on your activity rate.** Member: **7,258 francs** in 2026, 7,373 francs in 2027. Not a member: 20% of earned income, up to 36,288 francs (36,864 in 2027). A part-time worker earning a gross 20,000 francs a year, without a pension fund, can pay in only about 3,744 francs.
-   **No income subject to the AVS, no contributions**: a spouse without gainful activity and a person in early retirement are excluded. Unemployment, sickness or maternity do not end the right, as long as replacement income subject to the AVS is paid.
-   **An overpayment must be recovered**, at its nominal value and without interest. Left in the account, it will be taxed at withdrawal without ever having been deducted.
-   **At retirement, the first withdrawal closes the entire account**, and an account cannot be split. To stagger withdrawals over several years, between 60 and 65 (up to 70 if you are still working), you must have opened several accounts during the years of contributions.
-   **Beneficiaries: the rule changes on 1 June 2027.** You will be able to place your children or your life partner in the same rank as your spouse, without reducing the share of any of them to less than 10% of the capital.

Pillar 3a often comes down to one figure, the annual ceiling, and one date, 31 December. The rules that really weigh on your savings lie elsewhere: who has the right to pay in, which ceiling applies to part-time work, what happens to an overpayment, why a single account prevents you from staggering withdrawals, what the choice between a bank and an insurer changes, and who receives the capital in the event of death. This guide goes through them one by one, as laid down by the ordinance on tied individual pension provision and by the Federal Tax Administration's circular in force since 1 January 2026. It is aimed at people who live and work in Switzerland; the case of cross-border workers is covered in our guide to [pillar 3a for cross-border workers](https://www.ibani.com/en/guides/pillar-3a-cross-border-worker-tax-deduction).

## 1\. Who can pay into a pillar 3a?

Only people who receive income from a gainful activity subject to the AVS (old-age and survivors' insurance), or replacement income subject to the AVS, can take out a 3a contract and pay into it. Employees and self-employed people are affected in the same way. The rule has practical consequences:

-   **Unemployment, sickness, maternity, military service**: the right to pay in remains during a temporary interruption, as long as replacement income subject to the AVS is paid during the year.
-   **Spouse without gainful activity**: no 3a in their name, even if the other spouse works. Each spouse or registered partner who carries on a gainful activity is, on the other hand, entitled to their own ceiling, on a contract taken out in their name.
-   **Working in the spouse's business**: this is presumed to be part of the assistance spouses owe each other. To open a 3a, a genuine employment relationship is needed, with AVS contributions deducted from the salary and recorded in the person's name.
-   **Early retirement, giving up gainful activity after a birth, full invalidity with no residual earning capacity**: as soon as gainful activity ends, contributions are no longer possible, even before retirement age. In the year the activity ends, the full contribution is still allowed, provided it is paid while you are still working.
-   **AI (invalidity insurance) disability pension**: a person who earns income from their residual capacity to work can continue to pay in.
-   **After the AVS reference age**: contributions remain possible for five years at most if you are still working, even if your income is below the AVS contribution allowance for working pensioners (16,800 francs a year per employer). Proof of the activity must be provided every year.

## 2\. Small or large 3a: which ceiling applies to you?

The ceiling does not depend on your activity rate, but first on one question: are you a member of an occupational pension institution (2nd pillar)? Voluntary membership counts in the same way as mandatory membership. If you are not a member, the ceiling then depends on your income.

| Situation | 2026 ceiling | 2027 ceiling |
| --- | --- | --- |
| Member of a pension fund (“small 3a”) | 7,258 francs | 7,373 francs |
| Not a member of a pension fund (“large 3a”) | 20% of earned income, up to 36,288 francs | 20% of earned income, up to 36,864 francs |

### The part-time trap

An employee is only compulsorily insured under the 2nd pillar if a single employer pays them more than **22,680 francs** a year (23,040 francs in 2027). Below that amount, and unless their employer's fund provides for voluntary membership, they fall under the large 3a, which is capped at 20% of earned income. For an employee, this income is the gross salary less AVS, AI, APG and unemployment insurance contributions, 6.4% in total.

**💡 Example:** a person earns a gross 20,000 francs a year working part-time and is not a member of a pension fund. Their earned income is 18,720 francs (20,000 minus 6.4%), and their 3a ceiling is **3,744 francs**. A colleague with the same activity rate, but a member because the employer's fund also insures small salaries, can pay in **7,258 francs**. The salary certificate or the pension certificate shows whether a 2nd pillar contribution is deducted.

### The other cases

-   **A change during the year**: if you move from a salaried job with pension fund membership to self-employment without a pension fund, or the other way round, you can pay in up to the small ceiling for the period of membership and, provided you have drawn up annual accounts for the tax period, up to 20% of income for the other period. The total for the year cannot exceed the large ceiling, 36,288 francs in 2026.
-   **Self-employed person with a secondary salaried job with pension fund membership**: only the small ceiling applies, unless they have obtained an exemption from compulsory insurance for that secondary activity.
-   **Self-employed person making a loss**: without positive earned income, no deduction is possible.
-   **After the reference age**: a person who is still working and already draws their 2nd pillar retirement pension falls under the large 3a; a person who remains insured with a pension fund, even without contributing, keeps the small ceiling.
-   **3a insurance with risk cover**: the premium for supplementary insurance in the event of death or invalidity counts towards the ceiling.

To count for the year, the payment must be **credited to the 3a account by 31 December at the latest**. An order placed on 30 December and credited in January counts for the following year: neither the debit from your bank account nor arrival in the foundation's general account is enough. People domiciled in Switzerland and taxed at source benefit from the deduction only through a subsequent ordinary assessment: it is compulsory from a gross annual salary of 120,000 francs, and must otherwise be requested by 31 March of the following year at the latest; our guide to the [subsequent ordinary assessment for B permit holders](https://www.ibani.com/en/guides/permit-b-withholding-tax-subsequent-ordinary-assessment) details this procedure.

## 3\. You have paid in too much: what happens?

It is not permitted to pay more into pillar 3a than the deductible amount. An excess nevertheless arises easily: payments made into two accounts without keeping track of the total, pension fund membership lost during the year, a large 3a calculated on overestimated income. The consequences are set out in the Federal Tax Administration's circular:

-   **The excess is not deductible**, and the tax authority orders you to have it refunded by the pension institution.
-   **Only the nominal amount is returned**, without the interest earned on the excess.
-   **For an insurance policy, only the savings portion** of the premium can be refunded: the portion that funded the risk cover is used up.
-   **If you do not request the refund**, the excess remains in the 3a and will be taxed with all the assets at withdrawal, without ever having been deducted. A 3a withdrawal is always taxed in full, whether or not the contributions were deducted.

The simplest approach is to check the year's total before 31 December, by adding up the payments made into all your accounts and policies.

## 4\. How many accounts should you open, and why?

No rule limits the number of 3a accounts or policies. You can open them with one or several bank foundations and insurance companies, each with its own contract, as long as the total paid in during the year does not exceed the ceiling.

The point of having several accounts lies in three withdrawal rules:

-   **The first retirement withdrawal closes the account**. As soon as part of the assets is withdrawn in the five years before the reference age, the whole of the account concerned, interest included, becomes taxable, and the balance must be paid into a freely available account.
-   **An account cannot be split**. The assets cannot be divided to create new 3a accounts, nor partly transferred to another institution: a transfer requires the entire account to be closed. The only exception is buying in the whole of a gap in a pension fund.
-   **Withdrawals in the same year are added together** for the tax calculation, with those from the 2nd pillar and, for a married couple, those of the spouse.

To be able to withdraw in several stages, you therefore need to have funded several accounts during the years of contributions, for example by regularly opening a new account rather than concentrating everything in one.

## 5\. When to withdraw, and how to stagger withdrawals?

Pillar 3a assets can be withdrawn at the earliest **five years before the AVS reference age**, that is at 60 for a reference age of 65. For women born in 1961, 1962 and 1963, whose reference age is 64 years and 3, 6 or 9 months, the window opens correspondingly earlier. The assets fall due at the reference age; if you prove that you are still working, payment can be deferred by five years at most, that is up to age 70. If you stop working between the reference age and 70, all the remaining 3a accounts must be closed at that point.

### Staggering: one withdrawal year per account

Pillar 3a capital is taxed separately from other income, at a reduced rate: for direct federal tax, one fifth of the ordinary scale, to which cantonal and communal taxes are added according to the rules of your canton. Since the rate rises with the amount, spreading withdrawals over several calendar years in principle reduces the total tax. A person who holds four 3a accounts can, for example, withdraw one a year from age 61 to 64 and draw their 2nd pillar at 65, instead of bunching everything in the same year. Our guide to [tax on 2nd pillar capital withdrawals](https://www.ibani.com/en/guides/pension-capital-withdrawal-tax-by-canton) puts figures on the tax in 15 cantonal capitals and on the effect of staggering. Parliament rejected the budget relief programme measure that would have increased the taxation of lump sum withdrawals (National Council, March 2026); the act of 20 March 2026 on this programme does not change this taxation.

### Early withdrawal cases

Before the five-year window, the assets can only be withdrawn in the cases provided for by the ordinance, in particular:

-   **Owner-occupied housing for your own needs**: purchase, construction or repayment of a mortgage loan, once every five years. Unlike the 2nd pillar, the amount withdrawn cannot be paid back later. Pledging is also possible.
-   **Starting a self-employed activity**, or changing self-employed activity: within the year, and for the whole of the assets.
-   **Leaving Switzerland for good**. The restriction that prevents the mandatory portion of the 2nd pillar from being withdrawn when leaving for a European Union or EFTA state applies only to assets acquired under the LPP; it does not concern pillar 3a.
-   **Full AI disability pension**, where the invalidity risk is not insured.
-   **Buying into a pension fund**, by direct transfer of the 3a assets.

If you are married or in a registered partnership, a withdrawal for housing, for a self-employed activity or for leaving Switzerland requires the **written consent** of your spouse or partner.

## 6\. Bank or insurance: what really changes?

The ordinance recognises two forms of 3a: the pension agreement concluded with a bank foundation, and the pension contract concluded with an insurance company. The tax advantages and the withdrawal rules are the same. The rest differs:

|  | Bank 3a | Insurance 3a |
| --- | --- | --- |
| Nature | Savings contract, in an account or in securities | Capital or pension insurance, payable on survival or in the event of invalidity or death |
| Amount paid in | Free each year, up to the ceiling | Premium in principle set by the contract |
| Risk cover | None, unless there is a supplementary risk contract | Generally included; the corresponding portion of the premium counts towards the ceiling |
| Overpayment | Refunded at nominal value | Only the savings portion is refunded |
| Cancellation before maturity | Transfer of the entire account to another 3a, or buy-in to a pension fund | Surrender value according to the general terms and conditions, transferred to another 3a or a pension fund |

The most sensitive point is the **surrender value** of a policy cancelled before maturity. It is calculated according to the rules set out in the insurer's general terms and conditions; the Swiss Financial Market Supervisory Authority (FINMA) reviews the fairness of these general terms and conditions. The portion of the premiums that paid for the risk cover is not found in this value. On request, the insurer must inform you of the surrender value within four weeks, and FINMA can check the calculation free of charge. Outside the withdrawal cases provided for by the ordinance, this value is not paid out to you: it must be transferred to another 3a or used for a buy-in to a pension fund.

The choice therefore depends first on your need for cover in the event of death or invalidity, already partly provided by the 2nd pillar, and on the flexibility you want to keep over the amounts paid in. This guide describes the rules; it does not replace personalised advice.

## 7\. Can you make up for years without contributions?

Yes, since 1 January 2025, but only for gaps arising from 2025 onwards. The first buy-ins have been possible since 2026, for the year 2025. The conditions are cumulative:

-   **First pay the maximum contribution for the year of the buy-in**, for example 7,258 francs in 2026 for a person who is a member of a pension fund.
-   **Have received income subject to the AVS** in each year to be made up, and confirm this in writing to the institution.
-   **Only one buy-in per year**, of at most the amount of the small ceiling (7,258 francs in 2026, 7,373 francs in 2027), even for a person who falls under the large 3a. One buy-in can cover several missed years, within the limit of the previous ten years.
-   **No more buy-ins after a first withdrawal** of retirement benefits, and none beyond five years after the reference age.

The buy-in is deducted from taxable income, like the ordinary contribution. It follows rules distinct from those of a 2nd pillar buy-in, covered in our guide to [LPP buy-ins](https://www.ibani.com/en/guides/lpp-buy-in-worth-it-calculation).

## 8\. Who receives your 3a in the event of death?

Pillar 3a capital is in principle not part of the estate: the beneficiaries have a right of their own, in the order set by article 2 of the ordinance. They pay income tax on the benefit received. Heirs whose compulsory share has been infringed can, however, bring an action for abatement.

| Rank | Beneficiaries |
| --- | --- |
| 1 | The surviving spouse or registered partner |
| 2 | Direct descendants, the persons the deceased substantially supported, the person who lived with the deceased in an uninterrupted relationship for at least five years immediately before death or who has to support one or more children in common |
| 3, 4, 5 | Parents, then brothers and sisters, then the other heirs |

Today, the account holder can designate one or more beneficiaries among the persons in the second rank and specify their entitlements, or change the order of the last three ranks. They cannot place their children ahead of their spouse.

**⚠️ What changes on 1 June 2027:** the Federal Council amended the ordinance on 12 June 2026. From 1 June 2027, the account holder will be able to include one or more persons from the second rank, for example their children, including those from a first relationship, or their life partner, in the first rank alongside their spouse, and specify each person's share. One limit is set: the share of a beneficiary in the first or second rank cannot be reduced to less than 10% of the capital. In practice, these new options require a declaration by the account holder to the foundation or the insurer; if you wish to use them, ask them for information after that date.

## 9\. 3a or 3b: what is the difference?

Pillar 3a is **tied** individual pension provision: capped, deductible, locked in until retirement except in the cases provided for, exempt from wealth tax as long as it remains in the account, and subject to the statutory order of beneficiaries. Pillar 3b covers all other private savings, known as unrestricted pension provision: savings accounts, investments, life insurance outside pillar 3a. It has neither a ceiling nor a lock-in, but it does not benefit from the deduction specific to pillar 3a. For direct federal tax, premiums for life insurance outside pillar 3a only fall within the general deduction for insurance premiums and interest on savings, capped at 1,800 francs for a single person and 3,700 francs for a married couple, which health insurance premiums are often enough to use up. The two can be combined: pillar 3b takes over beyond the ceiling, or for savings that must remain available. Our presentation of the [three-pillar system](https://www.ibani.com/en/guides/the-swiss-three-pillars-system) places pillar 3a in relation to the AVS and the pension fund.

**💡 Capital in francs, retirement in another country?** Pillar 3a is paid out in francs. If you plan to spend your retirement outside Switzerland, or to fund projects in another currency, converting this capital weighs on what you are left with. [ibani](https://www.ibani.com/en/app), a Swiss financial intermediary based in Geneva and affiliated with SO-FIT (SRO), not a bank, converts your francs at the real market rate, plus a margin of 0.40% to 0.15% depending on the amount. Like any financial intermediary, ibani verifies your identity and may ask you about the origin of the funds. The daily rate can be followed on our [CHF-EUR converter](https://www.ibani.com/en/currency-converter/chf-to-eur-rate).

## 10\. Frequently asked questions

Anyone who receives income from a gainful activity subject to the AVS, or replacement income subject to the AVS such as unemployment, sickness or maternity benefits. A person without gainful activity, including in early retirement, cannot pay in, even if their spouse works. Each spouse who carries on a gainful activity can have their own 3a, opened in their name.

The ceiling does not depend on the activity rate but on membership of a pension fund. If you are a member, even with a small salary, you can pay in up to 7,258 francs in 2026 and 7,373 francs in 2027. If you are not, for example because your annual salary from a single employer does not exceed 22,680 francs, the ceiling is 20% of your earned income, that is gross salary minus AVS, AI, APG and unemployment insurance contributions. With a gross salary of 20,000 francs, that comes to about 3,744 francs.

The excess is not deductible, and the tax administration orders you to have it refunded by the foundation or the insurer. Only the nominal amount is returned, without interest. For an insurance policy, only the savings portion of the premium can be refunded. If you do not request the refund, the overpaid amount will remain in the account and will be taxed with the rest at withdrawal, even though it was never deducted.

No rule limits the number of 3a accounts or policies, with one or several institutions, as long as the total paid in during the year does not exceed the ceiling. Several accounts are mainly useful for staggering withdrawals: at retirement, the first withdrawal closes the account concerned, and an existing account cannot be split afterwards. The accounts therefore have to be opened over the years of contributions.

Up to the AVS reference age, and beyond it for five years at most if you continue to carry on a gainful activity, that is up to age 70 for a reference age of 65. After the reference age, payments remain possible even if your income is below the AVS allowance for working pensioners. If you stop working between the reference age and 70, all your 3a accounts must be paid out at that time.

Both forms are recognised by the ordinance on tied individual pension provision. A bank 3a is a savings agreement, held in an account or in securities, where you choose the amount paid in each year. An insurance 3a generally combines savings and risk cover, with premiums in principle set by the contract; the portion of the premium that funds the risk counts towards the ceiling and cannot be recovered. In the event of early cancellation, the insurer pays a surrender value calculated according to its general terms and conditions, which must remain within pension provision: it is transferred to another 3a or to a pension fund. The choice depends on the cover you need and the flexibility you want.

The order is set by the ordinance: first the surviving spouse or registered partner, then direct descendants, dependants, or the life partner after five years of living together or with a child in common, then parents, brothers and sisters and the other heirs. The capital is in principle not part of the estate. From 1 June 2027, the account holder will be able to place their children or their life partner in the same rank as their spouse, without reducing the share of any of them to less than 10% of the capital.

**Disclaimer:** this guide describes the rules in force on 13 November 2026, the ceilings announced for 2027 and the amendment to the ordinance that will come into force on 1 June 2027. The amount of tax on withdrawals depends on the canton of residence and on each person's situation. This information is provided for guidance only and does not constitute tax advice, investment advice or a recommendation on currency exchange. Have your situation confirmed by your pension institution and by your canton's tax administration before making any decision.

**Methodology and sources:** the recognised forms of pension provision, the order of beneficiaries, the withdrawal cases and age, spousal consent, transfers, the ceilings and buy-ins come from the [ordinance on tied individual pension provision (OPP 3)](https://www.fedlex.admin.ch/eli/cc/1985/1778_1778_1778/fr), articles 1 to 3a and 7 to 8, in the version in force and in the new wording of article 2 in force on 1 June 2027 (RO 2026 325), presented in the [Federal Social Insurance Office press release of 12 June 2026](https://www.bsv.admin.ch/fr/newnsb/fFBgrSAIiYiGRg9YfWRfM). The group of people allowed to pay in, the allowance for working pensioners, the decisive moment of payment, the inclusion of risk premiums in the ceiling, special cases, the large 3a in the event of a change of activity, the partial withdrawal that closes the account, the impossibility of dividing assets, the consequences of an overpayment, the exemption from wealth tax and the treatment on death are taken from the [Federal Tax Administration's circular no. 18a](https://www.estv.admin.ch/dam/fr/sd-web/yQgKmvu80LEr/dbst-ks-2025-1-018a-dv-fr.pdf) (in force since 1 January 2026). The general deduction for insurance premiums appears in article 33, paragraph 1, letter g, and separate taxation at one fifth of the scale follows from article 38 of the [Federal Act on Direct Federal Taxation (LIFD)](https://www.fedlex.admin.ch/eli/cc/1991/1184_1184_1184/fr); the adding together of lump sums received in the same year is described by the [Bern tax administration](https://www.taxinfo.sv.fin.be.ch/taxinfo/8e35a347-48f2-44b2-99e6-1863bccc18b7?lang=fr). The 2026 ceilings, the 31 December deadline and the withdrawal age are those of the [Federal Social Insurance Office](https://www.bsv.admin.ch/fr/votre-cotisation-au-3e-pilier), the 2027 ceilings those of the [press release of 5 October 2026](https://www.admin.ch/fr/newnsb/6ck3kzVxBNQ4), and the buy-in rules are specified in the [FAQ of the Federal Social Insurance Office](https://faq.bsv.admin.ch/fr/prevoyance-professionnelle-et-3e-pilier/rachats-dans-le-pilier-3a/partir-de-quand-un-rachat-est-il). The 2nd pillar membership threshold appears in article 7 of the [Federal Act on Occupational Old-Age, Survivors' and Invalidity Pension Provision (LPP)](https://www.fedlex.admin.ch/eli/cc/1983/797_797_797/fr); its 2027 value comes from the adjustment of the threshold amounts on 1 January 2027. Employee contribution rates come from information sheets [2.01](https://www.ahv-iv.ch/p/2.01.f) and [2.08](https://www.ahv-iv.ch/p/2.08.f) of the AVS/AI Information Centre. The reference age for women born from 1961 to 1963 follows from article 21 of the [Federal Act on Old-Age and Survivors' Insurance (LAVS)](https://www.fedlex.admin.ch/eli/cc/63/837_843_843/fr) and from the transitional provisions of the AVS 21 reform. The 120,000-franc threshold for the compulsory subsequent ordinary assessment appears in article 9 of the [FDF ordinance on withholding tax](https://www.fedlex.admin.ch/eli/cc/2018/274/fr). The rejection of the increase in the taxation of lump sum withdrawals is shown by the [Parliament press release of 4 March 2026](https://www.parlament.ch/de/services/news/Seiten/2026/20260304153908997194158159026_bsd148.aspx) and the [act of 20 March 2026 on the 2027 budget relief programme](https://www.fedlex.admin.ch/eli/oc/2026/393/fr). Leaving Switzerland and the restriction specific to LPP assets fall under articles 5 and 25f of the [Vested Benefits Act (LFLP)](https://www.fedlex.admin.ch/eli/cc/1994/2386_2386_2386/fr). The surrender value of an insurance policy follows articles 91 and 92 of the [Insurance Contract Act (LCA)](https://www.fedlex.admin.ch/eli/cc/24/719_735_717/fr).

## Savings in francs, plans elsewhere?

Our Geneva-based team supports Swiss residents who transfer part of their salary or savings to another country. A financial intermediary audited for its activity, affiliated with SO-FIT (SRO).

We are available by [email](https://www.ibani.com/en/contact) or by [phone](https://www.ibani.com/en/contact) from Monday to Friday.

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