Pillar 3a

New since 2025: Closing gaps in pillar 3a contributions and saving on taxes

Effective January 1, 2025, a significant change took effect in Switzerland: employed individuals are able to retroactively close contribution gaps in their restricted pension provision (pillar 3a) by making additional payments. This measure is based on the implementation of Motion 19.3702 by Council of States member Erich Ettlin and was approved by the Swiss Federal Council on November 6, 2024.

Why is pillar 3a essential for retirement planning?

The following chart illustrates Switzerland’s three-pillar pension system. After retirement, the first and second pillars together typically cover 60–70% of your previous income – often this is not enough to maintain the standard of living you are used to. This is precisely where the third pillar comes in: it serves as supplementary provision to close this income gap and help ensure your financial security in retirement.

With the ability to retroactively close contribution gaps of up to ten years, you can strengthen your pillar 3a retirement savings. This allows you to address potential shortfalls in your pension plan and better prepare for a financially secure retirement over the long term.

What does this mean for you?

Until 2025, it was not possible to make up missed pillar 3a contributions. With the new regulation effective since 2025, you can make retroactive payments for up to ten years, though only for gaps incurred from 2025 onward. If you need assistance or have questions about the best approach for your retirement planning, our experts at smzh are always available to support you.

Leveraging tax benefits

Like regular contributions, these retroactive payments are fully deductible from your taxable income. Each year, you are permitted to make one additional “catch-up” payment equal to the so-called “regular contribution limit,” which for 2025 is CHF 7,258. This amount may be adjusted for inflation every two years.

Requirements for retroactive payments

To take advantage of this new opportunity, the following conditions must be met:

• You must have earned income subject to Swiss AHV (social security) both in the year the contribution gap occurred and in the year of the retroactive payment.

• The full annual contribution for the current year must be paid before any retroactive payments can be made.

• Retroactive payments are limited to the maximum permitted contribution amount in the relevant year.

Financial impact on Switzerland

This measure is expected to reduce annual federal income tax revenues by an estimated CHF 100 to 150 million – of which 21.2% affects the cantons and 78.8% the federal government. At the cantonal and municipal level, income tax revenues are expected to decrease by CHF 200 to 450 million a year.

Future adjustments of tax privileges

Regardless of this change, the Swiss Federal Council – based on recommendations from an expert group on the review of tasks and subsidies – plans to adjust certain elements of the tax privileges associated with the second and third pillars.