Pillar 3a: Contribute now or catch up in 2026?

Does this happen to you as well? When autumn arrives and the first rainy days set in, I automatically shift into year-end financial preparation mode: reviewing health insurance and other insurance policies (you can still switch your health insurer until the end of November, by the way), checking my Pillar 3a situation, and seeing whether there’s anything left to do for tax optimisation or investing.

I prefer to handle all of this in November, before the snow arrives and the ski season calls. For me, it’s like a financial autumn clean-up — a moment to get everything in order before the year comes to an end.

Pillar 3a, in particular, is and remains one of the most effective private pension provision options. And yet, this year many people are facing a new question: contribute right away, or deliberately wait thanks to the new catch-up rule?

Here are my thoughts and the most important facts.

Pillar 3a: The current situation

• Maximum contribution for 2025:
  For employed persons with an occupational pension plan (BVG), the maximum Pillar 3a contribution is CHF 7,258. For persons without an occupational pension plan (e.g., self-employed persons), the limit is 20% of net earned income, capped at CHF 36,288.
• Contribution deadline: 31 December 2025
  What matters is that the amount is credited to your Pillar 3a account with value date no later than 31 December 2025. Transfers made on the last day but with a value date in January do not count for the 2025 tax year. Many banks also apply earlier cut-off times for in-branch or online payments — so it’s wise not to wait until the very last moment.
• Deferral and catch-up contributions:
  Starting with the 2026 tax year, you may close contribution gaps from 2025 onwards retroactively for up to ten years, and deduct these catch-up contributions for tax purposes. This sounds appealing, but comes with clear conditions:
  • The new rule applies only from 2025 onward. Gaps from earlier years (e.g., 2024 or 2023) cannot be made up.
  • You must have AHV-liable income in both years — in the year the gap occurred and in the year you make the catch-up contribution. For example, if you take a career break and have no earned income, you cannot make catch-up contributions.
  • For the current year, you must first contribute the full maximum amount (2026: CHF 7,258) before you may make any additional catch-up payments.
  • The amount you can catch up is limited: regardless of whether you are employed or self-employed, you may catch up no more than the maximum contribution valid in the year of the catch-up.

You can find all the details here.

With this new catch-up option, you now have more flexibility starting this year. However, that also raises the question: Should I contribute now or deliberately wait?

In these cases, contributing now makes sense

• If you are in a high income bracket this year. 

  For example, because you received a bonus, your tax rate may rise due to Switzerland’s progressive taxation. In this case, every Pillar 3a contribution brings immediate tax savings. Rule of thumb from Vermögenszentrum: for every CHF 1,000 contributed, you roughly save CHF 200–400 in taxes, depending on your canton and income. With a full contribution, you can quickly save a four-figure amount. You can calculate the savings using a simple tax calculator from VZ, UBS, Frankly, etc. For example, here is the federal tax calculator, and here is one from Vermögenszentrum.

• You got married or are getting married this year. 

  Couples who marry during the year in Switzerland are taxed jointly and retroactively for the entire year. This can increase tax progression. Both partners may contribute their maximum amounts, reducing taxable income and partially mitigating the higher tax rate.

• You want your money to grow immediately.

  If you contribute to a securities-based Pillar 3a (instead of a simple savings account), you invest your money earlier and benefit longer from market returns. Example: an amount of CHF 7,256 invested at a 5% return would yield roughly CHF 363 in one year (calculated using Moneyland’s interest calculator). Long-term rule: time beats timing the market. For your Pillar 3a, choose a low-cost solution — you can also compare options at Moneyland.

• You don’t expect major life changes.

  If your income and residence remain stable — no canton change, parental leave, self-employment, or sabbatical planned — there is little reason to delay contributing. By contributing this year, you benefit immediately from the tax deduction, and your money starts working for you earlier through interest or investment returns.

• You won’t have AHV-liable income next year.

  Planning a full career break? Then you should contribute this year, because catch-up contributions require AHV-liable income in both the year of the gap and the year of contribution.

In these cases it makes sense to postpone contributions

• 2025 is your “low-income” year.

  Were you on a sabbatical, working part-time at reduced hours (and maybe planning to increase hours next year), on parental leave, or working less due to further education? Whatever the reason, if your income this year is lower than usual, the immediate tax savings from a Pillar 3a contribution are smaller because of the lower tax progression. In this case, postponing contributions can make sense.

• You expect a higher income in 2026.

  Are you about to receive a promotion or a larger bonus? If you expect a higher income next year, you can use the catch-up contribution option in 2026 to make up the 2025 gap – in a year when your tax progression is higher, maximizing your tax savings.

• You need liquidity now rather than stability.

  Money in Pillar 3a is tied up: it can only be withdrawn for specific purposes such as starting a business, repaying a mortgage, purchasing a primary residence, or moving abroad. If you need short-term flexibility, delaying the contribution can give you some breathing room with the option to top it up later. Ideally, you should create a clear plan for filling the gap (e.g., setting up a standing order for next year) so that your long-term private pension provision is not compromised.

• You already have many deductions this year.

  If you’ve already had significant tax-deductible expenses this year – such as home renovations, high mortgage interest, or other costs that already reduce your tax burden – the Pillar 3a deduction may be less effective. Due to tax progression, each additional franc of deduction reduces taxes less once you’re already in a lower bracket. In this case, it can be sensible to postpone the contribution to the following year when your income is higher and your tax rate is steeper. Calculate the effect with a tax calculator or get brief advice — the differences can be significant depending on your canton and income level.

Calculation Example (Vermögenszentrum Pillar 3a Tax Calculator)

Male, no church affiliation, living in the city of Zurich, earns CHF 80,000 in Year 1 and CHF 125,000 in Year 2.

Annual contribution of CHF 7,258:

• Tax savings Year 1 = CHF 1,700
• Tax savings Year 2 = CHF 2,229
• Total savings = CHF 3,929

Postponed contribution of CHF 14,516 in Year 2:

• Tax savings Year 1 = CHF 0
• Tax savings Year 2 = CHF 4,453

In this case, the additional savings from postponing the contribution would be CHF 524.

So, what now?

Contributing this year is particularly worthwhile if you have a high tax progression, get married, or have a stable income. Waiting can make sense if you have a low income, high liquidity needs, already have many deductions, or expect a higher income in 2026. There is no one-size-fits-all answer — the decision depends on many personal factors.

What is certainly worthwhile: don’t make a last-minute decision in December. Calculate your marginal tax rate now, clarify your liquidity, and plan deliberately so that you can get the most out of it for yourself.