What exactly is the third pillar?
The Swiss pension system revolves around three pillars. The first two are mandatory: state pension insurance (AHV/AVS) and your company pension (2nd pillar). The third pillar is your personal pension savings. It's voluntary, but offers substantial tax benefits.
A higher pension thanks to the 3a scheme
The average AHV pension in Switzerland is around CHF 1,810 per month. Not exactly a luxury amount in an expensive country like Switzerland. The first two pillars usually cover only about 60% of your last salary.
By making smart use of the 3a scheme, you create an extra buffer that can make the difference between living tight and living comfortably as a pensioner. And if you ever decide to return to your home country, you'll have a nice piggy bank to take with you.
How much can you invest in 2025?
As an employee, you can deposit a maximum of CHF 7,258 per year into your 3a account in 2025. That's an increase of CHF 202 compared to 2024. You can deduct this amount in full from your taxable income.
For self-employed people without a company pension, the amounts are higher: up to 20% of annual income, with a maximum of CHF 36,288 per year.
Why use the 3a scheme?
- Tax benefits that actually matter. For every CHF 1,000 you deposit, you typically save between CHF 200 and CHF 400 in taxes, depending on your income and canton. At the maximum of CHF 7,258, that adds up to CHF 1,500 to CHF 3,000 per year.
- Forced savings work. You can only withdraw the money between ages 60 and 65, unless you retire early, emigrate, or buy your own home. This means the money really stays put for retirement.
- Flexibility in how you invest. Your 3a money doesn't have to sit in a savings account. You can choose between savings accounts or investment funds, depending on your risk profile.
New pension options from 2025
From 2025 onward, you can contribute retroactively to your 3a. That means you can still deposit money for years where you didn't hit the maximum. Say you only invested CHF 4,000 in 2025 instead of CHF 7,258. You can top up that missed CHF 3,258 in a later year, on top of your regular annual deposit.
This scheme gives you more flexibility. You can still fill gaps up to 10 years later, but only for years from 2025 onward.
Smart tips for physios in Switzerland
The most important advice? Start as early as possible, even if you're just beginning your career as a physiotherapist. Thanks to the compound interest effect, your money grows significantly more by retirement. The timing of your deposit also matters: pay in at the start of the year and you benefit from interest throughout. Just make sure your payment hits the 3a account no later than December 31.
Once you've saved between CHF 30,000 and CHF 50,000, it's wise to open a second 3a account. When it comes time to withdraw, you can then take it out in stages across different tax years, which saves on tax.
What to watch out for
Retirement planning is a big topic that shapes your entire financial future. It pays to read up carefully and get advice from a pension advisor who knows the Swiss market. Key points:
- Choose the right provider. Interest rate differences between providers can be significant. Compare regularly and switch if a better option comes up.
- Save or invest? Long-term investments usually return more than savings accounts, but there are strict rules for when and how to withdraw the money.
What if you move abroad?
If you permanently emigrate, you can have your full 3a balance paid out, regardless of which country you move to. You have two options: withdraw the money immediately upon leaving, or leave it until retirement.
If you withdraw immediately, you pay Swiss withholding tax. The percentage depends on the canton where your 3a provider is based. If you leave the money in place, you keep benefiting from tax-free growth.
An important tip: withdraw the money only after your official deregistration from Switzerland and registration in your new home country. That way, the more favourable withholding tax rate applies.
Invest in later
Setting up your 3a pension savings is an investment in yourself and your future. A little planning now can save you a lot of stress and financial worries later.
Whether you're just starting out as a physiotherapist in Switzerland or you've been working here for years, it's never too early, and rarely too late, to get your retirement planning in order. A good life in Switzerland is more than just doing your job well. It's also about making smart use of the financial opportunities this country offers.
Want to know what this looks like for your specific situation? Through takeoff, you get access to our financial advisors with knowledge of both Swiss and European tax systems, who guide our therapists through complex financial questions.
Still have questions about working as a physiotherapist in Switzerland, emigrating, or connecting with one of our financial advisors? Get in touch and we'll help you out.
