The Swiss Federal Council has just announced (October 12, 2022) that the maximum permitted tax deduction for Pillar 3a/3a Säule/3e Pilier as of 1st January 2023 is:
CHF 7,056 (currently CHF 6,883) for people who pay into a 2nd pillar, or
CHF 35,280 (currently CHF 34,416 ) for people without a 2nd pillar
https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen.msg-id-90661.html
What Does This Mean?
For the average working person (42 years old as of 2021), this means an additional CHF 3,979 in retirement savings and 100's in annual tax savings over the rest of their working life (23 years to age 65).
What’s more, there’s a bigger incentive for those getting higher returns on their 3rd pillar; at CHF 6,883 the difference between 0.05% and 5% yearly returns is CHF 125,983. From 2023 at CHF 7,056, that becomes a difference of CHF 129,150.
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 6,883, the average our clients make in additional returns by switching 3rd pillar provider is CHF 273,559. There’s most commonly no fee or penalty for switching 3rd pillar provider — even if your current pillar 3a 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.