3rd Pillar A Buyouts

3rd Pillar A Buyouts
From 2025 onwards, the tied individual pension plan (pillar 3a) will evolve with a key measure: the possibility of buying back unpaid contributions. This new feature provides an interesting lever for tax optimization and retirement planning for people working in Switzerland.

3rd Pillar A purchases in brief

  • The first possible redemption will be in 2026, for the year 2025
  • The maximum annual purchase is CHF 7,258 (self-employed and employees)
  • Redemptions are tax-deductible , as an ordinary contribution
  • Gaps can be filled by 10 years maximum from 2025

What is a 3rd Pillar A purchase?

The buyback involves paying retroactively contributions not made in previous years, up to the authorized annual ceiling. This measure is comparable to that already existing in the 2nd pillar, but is new for the pillar 3a.

Conditions

The scheme comes into force in 2025, but the first buy-backs can only be made fromfiscal year 2026to fill a gap dating back to 2025.

In addition, redemptions are only possible for subsequent years on January 1, 2025, with retroactivity limited to 10 years maximum. A gap from 2024 or earlier can therefore not be filled.

Who can buy back Pillar 3a contributions?

People eligible for a 3a can buy back years of contributions. In short, you'll need:

  • Have had an income subject to AHV in Switzerland in the year concerned.
  • Have had the right to contribute to Pillar 3a the year of redemption.
  • Have paid thefull contribution (i.e. CHF 7,258 for employees in 2025 and 2026).

What is the maximum buyback amount?

Each year, a person can buy back a maximum of one "small contribution", i.e. CHF 7,258 (amount applicable for 2025 and 2026), in addition to their regular annual contribution. This limit is the same whether one is an employee or a self-employed person without a 2nd pillar.

Tax benefits

The purchase is fully tax-deductible, as is the standard annual contribution. This can represent a significant tax saving, especially for people with a high marginal tax rate.

3a contribution limits

In 2025, it will be possible to pay out the following amounts in tied personal pension plans:

  • Employees affiliated to a pension fund: Up to CHF 7,258 / year
  • Self-employed or employees not affiliated to a pension fund: 20% of income, maximum CHF 36,288
Amounts paid into Pillar 3a can be deducted from taxable income, making it a recognized tax optimization tool.

Frequently asked questions

The buyback of pillar 3a allows you to make up for the years in which you did not pay the maximum allowed contribution. Starting in 2026, you will be able to retroactively pay up to 10 years of missing contributions from 2025 onwards, up to CHF 7,258 per year.

Any person active in Switzerland, who has received income subject to AHV in the year concerned, can buy back a 3a contribution, provided they have also paid in the maximum amount allowed for the year of the buyback.

Yes, it is possible to use 3rd pillar A assets to finance a purchase in the 2nd pillar. However, this transfer is tax-neutral, as it is taxed at a reduced rate on withdrawal, then tax-free on entry.
No. Redemptions are limited to one redemption per year, corresponding to one missing year.
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