Individual pension provision is an important way to supplement benefits from the AHV (Old-Age and Survivors’ Insurance) and occupational pension provision. In Switzerland, pillar 3a allows individuals to build up savings for the future while benefiting from a tax deduction, subject to the limits established by law.
On 5 October 2026, the Swiss Confederation announced an increase in the maximum tax-deductible contributions for the 2027 tax year. The new amounts will take effect on 1 January 2027 and will apply both to people affiliated with an occupational pension scheme and to those who are not.
What will the new maximum limits be from 2027?
The maximum tax-deductible amounts for the 2027 tax year will be as follows:
| Pension provision status | 2026 maximum | 2027 maximum |
| People affiliated with the second pillar | CHF 7,258 | CHF 7,373 |
| People not affiliated with the second pillar | CHF 36,288 | CHF 36,864 |
For people who are not affiliated with the second pillar, the deduction is limited to 20% of their earned income, up to the applicable maximum amount.
The increase amounts to CHF 115 for people affiliated with the second pillar and CHF 576 for those who are not. These are maximum limits: the amount that can actually be deducted depends on the contributions paid and, in the second case, also on earned income.
Who can benefit from the tax deduction?
Pillar 3a is intended for people who earn income from employment or self-employment and meet the requirements established under Swiss law.
The deductible amount depends on the individual’s pension provision status:
- With a second pillar: contributions paid can be deducted up to the applicable annual maximum.
- Without a second pillar: the deduction can reach 20% of earned income, up to the prescribed maximum.
To qualify for a deduction in the relevant tax year, the contribution must be credited to the pillar 3a account or policy by 31 December of that year. For example, to deduct a contribution for 2026, it must be credited by 31 December 2026.
Why plan contributions in advance?
The increase in the maximum limits provides an opportunity to review your pension planning strategy and consider how to distribute contributions over time.
Careful planning can help you to:
- check the available scope for additional contributions;
- coordinate pension savings with your income and personal liquidity needs;
- assess the tax benefit of contributions in light of your circumstances;
- arrange payments in good time instead of leaving all decisions until the end of the year.
It is important to remember that the maximum limit represents the highest deductible amount, not a sum that everyone is required to contribute. The amount chosen should also reflect individual financial needs and pension objectives.
What about people who did not make pillar 3a contributions in previous years?
Since 2026, it has been possible, subject to certain conditions, to make retroactive contributions to fill gaps in pillar 3a payments. This option applies for the first time to the 2025 tax year and is subject to specific requirements, including payment of the full ordinary maximum contribution permitted for the year in which the retroactive contribution is made.
Retroactive contributions are therefore a separate opportunity from the increase in maximum limits from 2027. Before proceeding, it is necessary to verify the applicable conditions and the amount that may be eligible for a retroactive contribution.
How can Fidav support you?
Pension planning means preparing for the future while keeping today’s needs in mind. Assessing pillar 3a contributions in the context of your tax situation can help you make more informed decisions.
Do you have questions about the new maximum limits, or would you like to understand which options best suit your circumstances? The Fidav team is available to listen to your questions and review the relevant tax considerations with you.
Write to us at info@fidav.ch: we will be happy to discuss your situation with you.
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