How much should I contribute to Pillar 3a?
Is a partial amount enough or should I use up the maximum contribution? Compando shows where the limits lie at the bottom and the top, how much the tax deduction gives back per thousand francs paid in and which amount stays bearable over the years.
1. Is there a minimum contribution for Pillar 3a?
Not by law. Pillar 3a prescribes neither a minimum contribution nor an annual one. If you skip a year, it has no consequences.
A minimum is set by your provider alone. With banks and pension apps it is low or does not exist, small amounts are possible there from a few francs. With an insurance solution, a minimum premium is fixed in the contract, which you pay over the term.
At the top, the maximum contribution sets the limit, in 2026 at CHF 7'258 for employees with a pension fund and at CHF 36'288 for the self-employed without one. Between the two, any amount is allowed. With bank and app solutions you decide each year anew how much you want to pay into Pillar 3a. The real question is therefore not how little is allowed, but which amount fits your budget.
2. Pillar 3a: partial amount or the full amount?
Both pay off. Every franc you pay in lowers your taxable income, no matter how much you contribute in total. Anyone who pays in more saves correspondingly more tax and builds more pension assets. A partial amount is therefore never lost, it simply brings less than the maximum contribution.
How much this difference amounts to shows over the years.
Sample calculation: a 35-year-old system administrator from Bern has a net income of CHF 88'000. Per thousand francs he pays in, he saves around CHF 280 in tax.
Contribution per year | Tax saved per year | Tax saved over 25 years |
|---|---|---|
CHF 3'600 (partial amount) | around CHF 1'000 | around CHF 25'000 |
CHF 7'258 (maximum contribution) | around CHF 2'030 | around CHF 50'000 |
Anyone who pays in the full amount saves around CHF 25'000 more tax over 25 years. On top of that comes the capital itself: at 4 percent return, the same contributions generate around CHF 120'000 in gains over 25 years, amplified by the compound interest effect. Earnings and capital gains stay tax-free until withdrawal.
As the counterpart to the tax deduction, the capital is tied to your retirement provision. You access it at the earliest five years before retirement, before that only for home ownership, the step into self-employment or emigration abroad.
- The maximum contribution fits when you do not need the money in the next few years.
- A partial amount fits when you are building reserves or have larger expenses ahead.
- No contribution brings neither the tax deduction nor the wealth build-up.
The tax calculator works out your own saving from your income and canton of residence.
3. How much should I contribute to Pillar 3a per month?
As much as you can carry over the long term. Pillar 3a is voluntary. Even small amounts pay off, because anyone who starts early gives the compound interest effect more time. A steady CHF 200 per month over twenty years brings more than a high contribution that you soon have to suspend again.
A good starting point is what remains free after your fixed expenses. From that, choose an amount that also has room in a tight month. Better to start low and stay with it than to set high and stop again.
Your income does not stand still. Your contribution need not either:
- With a higher income your marginal tax rate rises. The same franc then brings back more tax than before.
- With part-time work, parental leave or a job change you lower the standing order or pause it. There is no obligation to contribute.
- With an insurance policy a minimum premium is agreed. Above that amount you stay flexible, below it you do not.
The contribution runs most reliably by standing order. You then pay in small steps across the year, instead of having to think of everything in December.
Calculate pension assets from your amount
Contribution, term and equity share determine your final capital. The Pillar 3a calculator shows what your amount becomes over the years.
