Pillar 3a staggered withdrawal: how to save tax when you retire
If you spread your pillar 3a over several accounts and withdraw them over several years, you often pay much less tax when you retire. That's because capital withdrawals are taxed progressively. Here's when you can withdraw, how to make a withdrawal plan and what happens to the money afterwards.
- Withdraw from 60: you can withdraw your 3a five years before the OASI (AHV) reference age at the earliest. If you keep working, you can wait up to five years longer.
- All or nothing: you can only close a 3a account in full. That's why a staggered withdrawal needs several accounts.
- Progressive tax: several small withdrawals in different years usually cost less tax than one big one.
- It all adds up: withdrawals from your pension fund, your 3a and your spouse in the same year are added together in most cantons.
- Plan early: you need to open several accounts while you're still paying in. Existing savings can't be split later.
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👉 Download the Selma app and see how OASI (AHV), your pension fund, 3a and savings carry your retirement together, free and with no obligation.
1. When can you withdraw your pillar 3a?
You can make a regular withdrawal five years before the OASI (AHV) reference age at the earliest. For men, and for women born in 1964 or later, the reference age is 65, so the earliest withdrawal is at 60.
If you work beyond the reference age, you can postpone the withdrawal by up to five years and even keep paying in during that time.
Early withdrawals are only possible in special cases, for example for owner-occupied property, when you become self-employed or when you leave Switzerland for good.
Important
If you stop working at the reference age, your 3a savings become due then. So plan your withdrawals in good time, so that everything doesn't land in the same year.
2. Why a staggered withdrawal saves tax
When you withdraw, you pay a one-off capital withdrawal tax on your 3a savings. It's calculated separately from your other income and at a reduced rate. But the rate is progressive: the higher the amount in one year, the higher the tax rate.
So someone who spreads CHF 150,000 over three years usually pays less tax than someone who withdraws it all at once. How much you save depends heavily on your canton, municipality and marital status.
What matters is how it all fits together. In most cantons, the following are added up within the same year:
- withdrawals from all your 3a accounts
- capital withdrawals from your pension fund and vested benefits accounts
- for married couples, your spouse's capital withdrawals too
Important
Tax rules are set by the cantons. Before you withdraw, ask your tax office or a specialist to confirm what applies to you.
3. Several 3a accounts: how to prepare
Because you can only close a 3a account in full, a staggered withdrawal needs several accounts. Here's how:
- Open them early: spread your yearly payments over several accounts while you're still paying in. Existing savings can't be split later.
- Don't overdo it: many experts recommend two to five accounts, depending on your savings.
- Different providers are fine: your accounts don't have to be with the same foundation.
- Fill them evenly: accounts of similar size make planning easier later.
The yearly maximum stays the same however many accounts you have. More in our article on the pillar 3a maximum contribution.
4. Example: a withdrawal plan for retirement
Here's what a plan could look like for someone with a reference age of 65, three 3a accounts and a capital withdrawal from their pension fund:
- At 61: withdraw the first 3a account
- At 62: withdraw the second 3a account
- At 63: withdraw the third 3a account
- At 65: take the pension fund as a pension or lump sum, in a year without a 3a withdrawal
For married couples, it's worth putting your partner's withdrawals in different years too. This example is an illustration, not tax advice.
Important
The order isn't only a tax question. Also think about when you'll need the money and how long it can stay invested.
5. What happens to the money after you withdraw it?
Many people withdraw their 3a and then leave the money in a bank account. That's a pity: at 60 or 65 you often still have an investment horizon of 20 years or more.
A proven approach is to split it into two pots:
- Within reach: a reserve for the next few years, so you don't have to sell in a market dip.
- Invested for the long term: the rest stays broadly diversified and can keep working for you.
If you need money regularly, a withdrawal plan helps: you take out a fixed amount each month while the rest stays invested.
Conclusion: plan early, pay less tax
A staggered withdrawal is one of the simplest ways to save tax when you retire. But it only works if you prepare early. Your to-dos:
- Check how many 3a accounts you have and how big they are.
- Open more accounts if needed, while you're still paying in.
- Plan the withdrawal years for 3a, pension fund and partner together.
- Have the tax consequences in your canton confirmed.
- Decide how the money you withdraw should keep working for you.
Plan your retirement with Selma
At Selma we don't look at your pillar 3a in isolation. We bring together OASI (AHV), your pension fund, 3a and savings, and show you which part should be within reach and which can stay invested for the long term.
- Pillar 3a with Selma: a personal strategy with up to 97% equities, start from CHF 500, in cooperation with the VZ pension foundation.
- Pension mode: Selma helps you with a withdrawal plan, a cash reserve and a strategy that suits life after retirement.
- One plan, one fee: your pillar 3a and other investments are added together for your fee. The more you invest in total, the lower it can be.
Retirement on the horizon? 👉 Download the Selma app and see how your savings can carry you through retirement, free and with no obligation.
Prefer to talk to someone first? In our free financial guidance session we bring together OASI (AHV), your pension fund, 3a and your goals.
Frequently asked questions about staggered 3a withdrawals
At what age can I withdraw my pillar 3a?
Five years before the OASI (AHV) reference age at the earliest, so usually from 60. If you keep working, you can withdraw up to five years after the reference age.
Can I withdraw only part of my pillar 3a?
No. You can only close a 3a account in full. The exception is an early withdrawal for owner-occupied property. That's why a staggered withdrawal needs several accounts.
How many 3a accounts do I need for a staggered withdrawal?
There's no legal limit. Many experts recommend two to five accounts, depending on the size of your savings.
Can I split my existing 3a account?
No, you can't split it afterwards. But you can spread new payments over additional accounts.
Are 3a and pension fund withdrawals taxed together?
In most cantons, yes, if they happen in the same year. Your spouse's withdrawals are usually added too. That's why it pays to spread them over different years.
What should I do with the money after I withdraw it?
Keep a reserve for the next few years and leave the rest broadly invested. With a withdrawal plan you can pay yourself a regular amount.
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Niklas Linser
Niklas is taking care of Selma's digital marketing channels. He is an expert in communication, holds a degree in international economics and is way too passionate about. 🎾
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