Optimise Pillar 3a withdrawal: save taxes with staggering
Anyone wanting to optimise the Pillar 3a withdrawal saves several thousand francs in capital withdrawal tax with staggered withdrawals. Compando shows how staggering and alignment with the pension fund lower the tax burden.
1. Why should I stagger the Pillar 3a withdrawal?
With a withdrawal of CHF 100'000 or CHF 200'000 from Pillar 3a in the same tax year, the capital withdrawal tax rises disproportionately. Capital withdrawals from Pillar 3a are taxed separately from income, but progressively: the higher the total amount per year, the more strongly the tax burden rises. Distributed over several years, it falls noticeably.
Multiple Pillar 3a accounts are the precondition for a staggered withdrawal, because an existing 3a account cannot be split later. That is why many people open multiple 3a accounts over the years; from around CHF 50'000 per account, an additional one is often worthwhile.
Three ways lower the capital withdrawal tax at the withdrawal:
- Multiple 3a accounts to be able to stagger at all.
- Distribute withdrawals over several tax years, instead of all at once.
- Separate pension fund and Pillar 3a in time to break the progression.
2. How much tax do I save through staggered withdrawal?
For larger pension capital, staggering brings several thousand francs in tax savings, especially when a withdrawal from the pension fund is also pending.
Example calculation: A 60-year-old project manager from Zurich owns CHF 200'000 in Pillar 3a, distributed across four accounts.
Variant | Withdrawal distribution | Tax burden |
|---|---|---|
Single withdrawal | CHF 200'000 in one year | around CHF 11'500 |
Staggering | CHF 50'000 each over 4 years | around CHF 9'000 |
Saving: around CHF 2'500. The effective tax burden is determined by canton of residence, withdrawal of other pension funds and marital status. In high-tax cantons such as Zurich, Geneva or Basel-City, staggering has a stronger effect; in low-tax cantons such as Schwyz or Zug, the effect is smaller because the base level is already low.
The tax authorities add together all capital withdrawals of one tax year: Pillar 3a, pension fund, vested benefits accounts and, in many cantons, the spouse's withdrawal. Withdrawing everything at once increases the progression.
You can calculate the exact tax amount per canton of residence in advance at the Federal Tax Administration (FTA). Already at the contribution stage, Pillar 3a lets you save taxes; at withdrawal, planning is what counts.
3. How do I stagger the withdrawal over several years?
The best tax optimisation rarely arises spontaneously shortly before retirement. Often, planning begins as early as age 55 or 60. Early preparation distributes the tax burden over several years instead of triggering a high progression jump in a single tax year.
Age | Possible action |
|---|---|
60 | withdraw first 3a account |
61 | second 3a account |
62 | vested benefits account |
63 | third 3a account |
65 | pension fund |
Which account comes first depends on the starting position: with accounts of differing size, the smaller one is often withdrawn first, so that the progression stays lower in the following years. If all accounts are similar in size, the order matters less than the distribution across different tax years. With securities portfolios, the sales proceeds often flow to the same account, so early-established, separate accounts are the key.
4. How do I coordinate Pillar 3a with the pension fund?
The biggest tax differences often arise not within Pillar 3a, but through the combination with the pension fund. If pension fund and Pillar 3a fall in the same tax year, many slip into a higher progression.
The right order results from the situation:
- For a planned early retirement, Pillar 3a is checked before the pension fund.
- With a high withdrawal from the pension fund, the Pillar 3a is distributed over other years.
- An existing vested benefits account is staggered as well.
Married couples plan both pension situations jointly. An earlier withdrawal for home ownership can also influence later tax planning. Those who continue working after the reference age can defer the Pillar 3a withdrawal by up to five years and thereby gain additional tax years for staggering.
5. Conclusion: how do I lower the taxes on the withdrawal?
Those who plan the withdrawal early lower the capital withdrawal tax significantly. The key points:
- Stagger: withdraw larger balances over several tax years instead of all at once.
- Multiple accounts: the precondition for staggering, established early.
- Pension fund: separate its withdrawal in time from Pillar 3a, often most effective.
- Start early: plan from 55 to 60, so that enough separate accounts exist.
Compare Pillar 3a providers
Not every provider is equally suited to a staggered withdrawal. Comparing banks, apps and insurers by number of accounts, fees and flexibility shows the right solution.
