Paying into pillar 3a after retirement: What you need to know

Do you want to continue contributing to your pillar 3a after retirement instead of withdrawing it immediately? This is possible as long as you remain employed. We will show you what to consider when continuing and withdrawing from your pillar 3a after retirement.

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How long can I continue contributing to pillar 3a after retirement?

If you remain employed, you can continue contributing to pillar 3a for up to five years beyond the normal reference age. Specifically, women can continue until the age of 69, and men until the age of 70. You can even make contributions if you have already withdrawn money from a 3a account. It is also possible to contribute to and withdraw from pillar 3a in the same year.

When is it beneficial to contribute to pillar 3a after retirement?

Continuing to contribute to pillar 3a after retirement can help save taxes. How much you can save depends on:

• Your taxable income
• Your place of residence

Especially for those who don’t align their salary and any pension with each other, there may be unnecessary tax payments. This is because taxable income also includes any pension benefits from pillar 1 and pillar 2. The rule is: if your taxable income is low, contributing to pillar 3a is less advantageous than if your income is high. You can calculate how much you can save by contributing using the federal tax administration’s tax calculator.

By the way, you can also optimize the withdrawal for tax purposes, for example, by using multiple pillar 3a accounts. In the linked article, we explain why the rule of thumb “open a new 3a account once you reach 50,000 CHF” is not valid for all cantons.

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What do I need to contribute to pillar 3a after retirement?

In order to continue managing your pillar 3a accounts, you must prove to the pension foundation that you are still employed. If you are employed, you can provide this proof with an employment contract or a pay slip. If you are self-employed, it is best to submit a confirmation from the relevant compensation office. The proof of continued employment must be provided annually.

How can I continue contributing to pillar 3a with finpension after retirement?

One month before reaching the reference age of 64 (for women) or 65 (for men), you will receive an email from finpension. In this email, we will inform you about the possibility of continuing your pillar 3a account or making a withdrawal. If you wish to continue contributing to pillar 3a, we will need proof of your continued employment. Acceptable proof includes:

• Pay slip
• Employment contract
• Confirmation from the compensation office

You can send the proof to us by email at [email protected].

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How much can I contribute to pillar 3a after retirement?

The maximum amount for pillar 3a remains unchanged. Even if you continue working beyond the regular retirement age, the following applies:

• If you are employed and have a pension fund, you can contribute the smaller maximum amount.
• If you no longer make pension fund contributions, you can contribute the larger amount. However, the larger pillar 3a contribution is limited to a maximum of 20% of your net earned income. This applies, for example, to self-employed individuals with a sole proprietorship or partnership who are not voluntarily affiliated with a pension fund.

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Are there any special considerations when withdrawing pillar 3a after retirement?

The withdrawal from a pillar 3a account is generally possible from the age of 59 for women and 60 for men. The process of withdrawing after retirement is exactly the same as a “normal” withdrawal. So, someone who withdraws the money at 60 follows the same withdrawal process as someone who withdraws their pillar 3a at 67.

Keep in mind: A staggered withdrawal of pillar 3a and pension funds is worthwhile as it allows you to save taxes. Learn more about the topic in the linked article.

Read more:

• Pillar 3a when leaving Switzerland