In brief: two opposite logics
Pillar 3a is "tied" to provision: in exchange for a strong tax deduction, the state sets rules (annual ceiling, locked capital). Pillar 3b is "free": no contribution or withdrawal constraints, but the tax advantage is far more limited. The right choice depends on your goal: optimise taxes and prepare for retirement (3a), or keep flexible, transferable savings (3b).
Pillar 3a (tied provision)
This is the most widely used pillar, because its deduction applies across Switzerland. In 2026: up to CHF 7,258/year for an employee with a pension fund, or 20% of income (max. CHF 36,288) for a self-employed person with no 2nd pillar. The capital is exempt from wealth tax for the life of the contract and is only taxed on withdrawal, at a reduced rate separate from your other income.
Pillar 3b (free provision)
The 3b sets no contribution limit and stays available at any time, unconditionally. In return, it grants no federal deduction: only Geneva and Fribourg allow a limited cantonal deduction. The capital is subject to wealth tax during the contract but is not taxed on withdrawal. The 3b mainly serves flexibility and estate planning (a wider choice of beneficiaries).
3a vs 3b: the comparison table
| Criterion | Pillar 3a (tied) | Pillar 3b (free) |
|---|---|---|
| Contribution ceiling | CHF 7,258/yr (employee) · CHF 36,288 (self-employed) | No ceiling |
| Tax deduction | Yes, across Switzerland | Geneva and Fribourg only, limited |
| Capital availability | Locked until 5 years before retirement (save for exceptions) | Available at any time |
| Wealth tax | Exempt during the contract | Subject each year |
| Taxation on withdrawal | Reduced one-off tax | No tax on withdrawal |
| Beneficiaries (death) | Framed legal order | Wider choice |
Which to choose for your situation
The general rule: max out the 3a first, because it is the most rewarding tax advantage and the capital escapes wealth tax. Move to the 3b once the 3a ceiling is reached, or if you need fully free savings (a project with an uncertain horizon, estate transfer). In Geneva and Fribourg, a deductible 3b can also usefully top up the 3a.
The right mix depends on your income, your 2nd pillar and your projects. Our simulator and an adviser help you split your contributions.
The special case of Geneva and Fribourg
These are the only two cantons that allow a 3b deduction. In Geneva, up to CHF 2,324/year, or CHF 4,434/year if you have neither a 2nd pillar nor a 3a. In Fribourg, up to CHF 750/year for a single person and CHF 1,500/year for a married couple. Details on our pages 3rd pillar in Geneva and 3rd pillar in Fribourg.
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