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Created on 12.11.2018

Retirement fund calculator for pillar 3a – calculate your potential tax saving

Paying a fixed amount into pillar 3a each year is of great benefit in two ways. 1 You’ll increase your private pension: while the money is tied up until retirement, it can be used to buy your own home or set yourself up in business, for example. 2 You reduce your tax bill as the amount paid in can be deducted from taxable income. You can work out how much tax you will actually save quickly and easily with our retirement fund calculator.

Nobody is exempt from paying tax each year. However, Switzerland’s three-pillar system is an old-age pension structure that enables a significant amount of tax to be saved. Paying into the third pillar, in particular, is definitely worthwhile. Pillar 3a is voluntary and easy to set up: your bank opens a  retirement savings account 3a into which you can pay anything from a few Swiss francs to the maximum amount permitted annually. Making contributions to the private retirement planning pillar also allows you to save on tax. These payments can be deducted from taxable income.

Premature withdrawal of funds to buy your own home or to become self-employed

You make an important contribution to your personal retirement planning for old age by paying into pillar 3a. You decide on the amount paid in or, in other words, the rate of saving. You can take out the capital before retirement within the scope of the legal withdrawal options, for example, to buy your own home or to set up a business as a self-employed person.

Work out your tax savings with the savings calculator

Work out how much tax you can actually save with the third pillar in a few steps by using our online calculator: just enter your tax location, marital status, religious denomination and number of children as well as your taxable income. You can save up to CHF 1,500 in tax on taxable income of CHF 70,000.   It’s therefore worth paying the maximum amount into the third pillar each month.

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