Withdraw Pillar 3a: what you should know about the payout
The withdrawal of Pillar 3a is legally limited to certain times and reasons. Compando explains when a withdrawal is possible, how you apply for it and which taxes arise.
1. When can I withdraw my Pillar 3a?
The ordinary OASI reference age for women and men is 65 years; for women, transitional provisions apply until 2028. For the withdrawal of Pillar 3a around retirement, two deadlines apply:
- Ordinary withdrawal: at the earliest five years before the reference age, i.e. from 60.
- Deferral: up to five years after the reference age, at the latest until 70, provided you prove OASI-liable employment.
Alongside this ordinary withdrawal, the law allows an early withdrawal.
Pillar 3a is tied: a withdrawal at any time is not possible. The withdrawal timing determines when the capital withdrawal tax arises. A contribution is also possible in the withdrawal year, provided OASI-liable income exists and the contribution takes place before the effective withdrawal.
2. In which cases is an early withdrawal possible?
An early withdrawal, also called advance withdrawal, is the removal of the pension capital before the ordinary retirement. It is only possible for a few clearly defined situations:
3. Dissolve Pillar 3a: how do I proceed?
The withdrawal does not occur automatically. To obtain the pension money, you must actively have Pillar 3a dissolved with the provider, at a bank, insurance or Pillar 3a app. A single 3a account can only be dissolved in full; a partial withdrawal is not possible.
- Submit the application to the provider
- State the reason for withdrawal (retirement, home ownership, emigration, etc.)
- Submit identification and the necessary documents, by reason for withdrawal: ID and account details for retirement, purchase contract or mortgage documents for home ownership, evidence of business activity for self-employment, deregistration confirmation for emigration
- Arrange the payout to the desired account
Plan the withdrawal several months in advance: the withdrawal often takes several weeks and, if triggered too late, can fall into the next tax year. This applies especially to a combined withdrawal with the pension fund or a change of canton of residence. You must also record the withdrawal in your tax return.
How flexibly and cheaply the withdrawal runs differs strongly between providers.
4. What taxes apply on the withdrawal?
On withdrawal, the capital withdrawal tax arises. Unlike the annual tax deduction on contributions, it is levied once, separately from the rest of income and at a reduced tariff. At a withdrawal of CHF 100'000 it lies roughly between CHF 2'000 and CHF 8'000, differing by canton.
The tax is progressive: the larger the amount, the more strongly it rises. Decisive is the tax domicile at the time of withdrawal, not the canton in which the account is held. In addition, the tax administrations add together all capital withdrawals of one year: Pillar 3a, pension fund and vested benefits accounts, in many cantons also the spouse's withdrawal. Several withdrawals in the same tax year increase the progression significantly.
You can calculate the exact tax amount per canton of residence in advance at the Federal Tax Administration (FTA). With staggered withdrawals, the right account order and coordination with the pension fund, the tax burden can be lowered by several thousand francs.
5. How does the withdrawal differ at bank and insurance?
On an ordinary withdrawal at retirement or at the end of the contract, both solutions pay out the saved capital. A bank transfers the balance including interest or the proceeds from the securities solution. An insurance pays the agreed benefit, often supplemented by accumulated surpluses. In both cases you receive the amount for which the contract is designed.
On an early withdrawal before the end of the contract, the difference shows. A bank account can be dissolved flexibly and at the full balance. With an insurance, the surrender value applies: because the contract was not held to the end, the payout can lie below the contributions paid in, since the acquisition and administration costs are not yet offset at the start.
Example: With CHF 36'000 in contributed premiums to a mixed life insurance over 5 years, the surrender value is around CHF 28'000. The difference is accounted for by acquisition costs, administration and risk premiums; it becomes smaller the longer the contract runs.
Those who want to dissolve an insurance policy early should therefore know the surrender value beforehand. Existing 3a policies are worth a review before withdrawal. Which providers fit your own profile you can see in the direct comparison by costs and conditions.
6. Conclusion: the key facts on the Pillar 3a withdrawal
Those who plan the withdrawal early avoid unnecessary taxes and get more out of Pillar 3a. The key points:
- Timing: ordinary withdrawal from 60, reference age 65, deferral until 70 with employment.
- Early withdrawal: only for home ownership, self-employment, emigration, disability, buy-in to the pension fund or in case of death.
- Process: apply actively with the provider and plan several months in advance.
- Taxes: separate capital withdrawal tax; staggered withdrawals lower it significantly.
- Providers: bank, app and insurance differ in flexibility, costs and surrender value.
Compare Pillar 3a providers
Not every provider offers the same flexibility and low costs on withdrawal. The comparison of banks, insurers and digital 3a solutions leads to the right pension solution.
