Maximum amount of 3rd pillar 3a in 2024
After retirement, AHV and occupational benefits (LPP) only cover 50 to 60% of a household's former income.
Pillar 3a makes it possible to fill individual pension gaps, while saving on taxes every year. Anyone who wants to use this option can therefore contribute the maximum annual amount into pillar 3a and benefit from several advantages at the same time.
The maximum amounts of the 3rd pillar 3a in 2024
The Federal Social Insurance Office (FOAS) sets the maximum deductible amounts of the 3rd pillar 3a each year.
In 2024, you can make a maximum of the following contributions into pillar 3a:
- CHF 7,056 maximum for active persons affiliated to a pension fund
- CHF 35,280 maximum for active people without a pension fund
These maximum deductions also constitute the payment limits. It is not possible to pay more than these limits.
Payments into your 3rd pillar 3a are advantageous because they are deductible from your taxable income. Depending on your tax situation and the amount paid, you can save several hundred or thousands of francs in taxes each year. The higher your payments, the more you save in taxes.
The tax advantages of the 3rd pillar 3a
- Annual savings deposits can be deducted from taxable income up to the legal limit.
- No wealth tax, income tax or withholding tax for the entire life of the pension plan.
- When paid out, the money saved is taxed at a reduced rate and separately from other income.
- The funds held in account 3a can be used to buy residential property for personal use. Withdrawal is subject to tax — but at a reduced rate and regardless of other income.
How much should I pay into a 3rd pillar 3a?
The best thing is to save the maximum amount allowed by law. But this is not possible for all households, as their savings capacity is not always sufficient. To optimize your 3a pension, calculate how much you can afford to save without putting a strain on your lifestyle. Balance your regular income and current expenses in order to know how much you can set aside for a 3rd pillar 3a.
Pay less taxes thanks to the maximum amounts of the 3rd pillar 3a
By making payments into a 3rd pillar 3a, you are preparing for retirement and at the same time saving on taxes. Here you will find all the information about pillar 3a and its benefits. Learn more.
