Maximum contribution to pillar 3a (& pillar 3b) for 2024

Maximum contribution to pillar 3a (& pillar 3b) for 2024

The maximum contribution to pillar 3a for 2024 is CHF 7’056 for people who pay into a 2nd pillar.

The maximum contribution to pillar 3a for 2024 is CHF 35,280 for people earning an income without a 2nd pillar.

The maximum tax-deductible contribution to pillar 3b for 2024 in Geneva is: 

CHF 2,232 for single people earning an income who pay into a 2nd pillar

This limit is doubled for taxpayers who do not pay contributions to 2nd pillar or pillar 3a.

CHF 3,348 for married couples earning an income who pay into a 2nd pillar

This limit is increased by half if one of the two spouses/registered partners does not pay contributions to 2nd pillar or pillar 3a.

CHF 913 for each child/dependent

This limit is increased by half if one of the two registered spouses/partners does not pay contributions to 2nd pillar or pillar 3a.

What Does This Mean?

For the average working person (42 years old as of 2021), this means;

1. Tax Savings – pillar 3a
   1. CHF 1,924 per year, based on a single person, no church tax, taxable income of CHF 125,000, 2023 tax rates in city of Zurich, maximum pillar 3a amount for 2024
   2. CHF 2,437 per year, based on a single person, no church tax, taxable income of CHF 125,000, 2023 tax rates in city of Geneva, maximum pillar 3a amount for 2024
2. Tax Savings – pillar 3b
   1. Additional tax savings possible for pillar 3b contributions in Geneva and Fribourg
3. Extra Retirement Funds
   1. CHF 7,056 x 23 years (Age 42 to age 65) = CHF 162,288 extra pension money
4. Extra Deposit or Amortisation Money to Buy a House
   1. The 3rd pillar (3a and 3b) can be used to finance part of the deposit for your Swiss home, and to finance the repayments

Better Ways to Save

Most people open their pillar 3a/3rd pillar without doing much research into the best option and are completely unaware that apart from the tax saving, there’s multiple investment options. These include capital protection, tailored fund portfolios, and combinations of the two.

Based on CHF 7,056, the average our clients make in additional returns by switching 3rd pillar provider is CHF 280,435. 

There’s rarely a fee or penalty for switching 3rd pillar provider — even if your current 3rd pillar is pledged to your Swiss property.

For more information and a tailored 3rd pillar comparison with your current 3rd pillar, contact us now for a free informal discussion to explore your options.

 
Click HERE to discover the Best strategy today!