Up to how much can I save to my pillar 3A?

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There is no minimal contribution to the third pillar A, whether at the bank or at an insurance. There, we said it! Depending on your income, you can estimate the buget you can allocate to it.

What are the maximum and minimum amounts that can be deducted in a third pillar A bank or insurance

It may happen that some insurances and, more specifically, some insurance products infringe on this rule by requiring from their insurees that they contribute with a minimum monthly amount.  

The maximal contribution depends on two factors: your status (employed or self-employed) and your income: 

  • 6’883 CHF per year for employees, that is a bit more than 570 CHF per month.
  • 34’416 CHF per year for self-employed persons or 20% if the annual income. In other words, the maximal contribution will always be 34’416 CHF per year for every independent person with an income of 170’640 CHF or above. 

Be careful: For self-employed persons to be able to contribute this much in their third pillar A, it is mandatory for them not to be insured on a voluntary basis to a pension fund. Each self-employed person should take the time to compare the advantages and disadvantageous of these two alternatives. 

Case 1: you are employed and you made 100,000 CHF in 2019, you were able to contribute with the maximal amount of 6,883 CHF. 

Case 2: you are self-employed and you made 100,000 CHF in 2019, you were able to contribute with the maximal amount of 20,000 CHF, which amounts to 20% of your income. 

Case 3: you are self-employed and you made 200,000 CHF in 2019, you were not able to contribute with 40,000 CHF, which amounts to 20% of your income, but with 34,416 CHF, the capped maximal amount.

Graph highlighting the difference in third pillar A contributions that a self-employed person can make compared to an employee

Be careful, these amounts are the maximal contributions for the third pillar 3A and not for each account. Whether you have one or several 3A accounts, the total maximum, all accounts included, remains 6,883 CHF for an employed person or 34,416 CHF for a self-employed person. 

I can already hear your next questions!  “Noé, I understood I can contribute. But what I would like to know is how much I can save in taxes thanks to the third pillar A?”

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