The maximum pillar 3a amount
Maximum retirement benefits and maximum tax savings? We show you everything you need to know about the maximum pillar 3a amount.
This is how you can achieve tax savings with your pillar 3a Your tax savings with the pillar 3a
How much are my tax savings with pillar 3a? Calculate now and save taxes with your frankly pillar 3a.
How much are my tax savings with pillar 3a? Calculate now and save taxes with your frankly pillar 3a.
How much tax do I save?
Saving with the third pillar is also extremely attractive from a tax perspective: You save on taxes with every contribution to your pillar 3a. You can deduct the pension contributions from your taxable income in full up to the maximum amount. The amount you save in taxes increases with the more you pay. No income tax or wealth tax is payable until the pension contributions are paid out.
The amount of tax savings depend on your marital status, place of residence, taxable income and denomination. Do you want to calculate how much tax you can save?
Examples of tax savings:
Example 1
Single, no children, residence 4000 Basel, taxable income: CHF 70,000, deposits CHF 5,000/year, non-denominational
Tax savings: CHF 1,236 in the first year
A pillar 3a deposit reduces the tax burden in Basel by CHF 1,236 or 7.60%!
Example 2
Married with a child, residence 8000 Zurich, taxable income: CHF 120,000, deposits CHF 6,000/year, Protestant
Tax savings: CHF 1,509 in the first year
A pillar 3a deposit reduces the tax burden in Zurich by CHF 1,509 or 8.50%!
You can save taxes even with small contributions to pillar 3a
Even if you are not able to pay the maximum pension contributions for 2024, you can also pay smaller contributions into your third pillar at any time. This way you also save on taxes and at the same time benefit from long-term yield opportunities in your retirement provision. It is best to set up a standing order, since even regular small amounts can have a big effect.
Example:
If you save the price of a coffee a day and invest it in your third pillar, according to the frankly pension calculator your retirement assets can amount to more than CHF 100,000* when you retire.
*Deposit CHF 1,800 per year, 30 years, ambitious investment strategy with hypothetical annual return 3.90%.
How do I declare my 3a contributions in my tax return?
You do not need a tax consultant to benefit from the tax savings. In your tax return (Main form -> Deductions) you simply the state amount of pillar 3a contributions that you have paid in.
Don't forget to enclose the tax certificate from your frankly pillar 3a! In any case, an official certificate from the pension fund confirming the contributions paid must be enclosed with the tax return. With frankly, you will receive your tax certificate once a year in your app’s oder web version mailbox (under the menu item «Profile»).
