Pillar 3a Withdrawal: How to Plan the Tax

When you can withdraw, why staggering helps and what to coordinate with your pension fund.

5 min read · Retirement & Pensions

Life situations: Planning for retirement

Withdrawals from pillar 3a are taxed at a reduced rate, separately from your income. How you time them matters.

When you can withdraw

You can withdraw up to five years before the reference age, and earlier for buying a home, starting a business or leaving Switzerland for good. Work after the reference age can extend the period for up to five more years if you keep earning income.

Stagger the accounts

Tax rates rise with the amount withdrawn in a single year. Spread withdrawals over several years, ideally one account per year, to lower the total tax. This is why many savers open several accounts early.

Coordinate with other capital

• Pension fund lump sums are taxed in the same way and added to 3a withdrawals of the same year.
• Avoid taking everything in your last working year, when your income is also high.
• Check which canton taxes the withdrawal: usually the one where you live on the payout date.

Estimate the effect with the staggered withdrawal calculator.