What exactly are the changes?
This involves buying back “pension gaps”, which is the difference between what you could have contributed during the year (*) and what you actually paid in.
Maximum allowed amount – amount paid in = gap that can be bought back
Up to now, these unpaid amounts in your Pillar 3A – and the associated tax benefits – were lost as of 1 January of the following year. The new law allows for the purchase of unpaid amounts from the previous 10 years, starting in January 2026, but only from 2025 onwards.
Example Harold has been contributing to a Pillar 3A since 2019. He will not be able to retroactively purchase the unpaid amounts from 2019 to 2024. However, he can purchase the shortfall for 2025 in 2026 (e.g. CHF 3,178 if he contributed CHF 4,080)(*) or do so later. For example, in 2029, he could partially or fully buy back the gaps from 2025, 2026, 2027 and 2028. It's important to keep in mind that if he partially buys back his gap in 2025, for example, CHF 2,000 out of CHF 3,178, the buyback right for CHF 1,178 for 2025 is no longer available.
Why fill pension gaps?
Retroactive buybacks of contributions offer two main advantages: a better pension and a tax benefit. First, the amount in your Pillar 3A will effectively strengthen your private pension and increase your pension capital. Second, the amount paid can be deducted retroactively from your taxable income.
Example Jean receives a significant salary increase in 2027. She can make up the pension gaps in her Pillar 3A account for 2025 and 2026, which her previous salary did not allow her to contribute to. She can therefore increase her pension savings while benefiting from a substantial tax deduction.
Conditions for the buyback
The law provides a strict framework within which the retroactive buyback of pension gaps can be carried out.
| Activity | You receive income subject to AVS contributions and are under 70 years of age at the time of the buyback. |
| Priority to the present | You have already paid the maximum permitted amount for the current year. |
| Retroactivity | Pension gaps from 2025 onwards that are less than 10 years old. |
| Full years | A pension gap of one year can only be bought back in a single payment. |
| Maximum amount | The total amount bought back must not exceed the applicable legal annual limit. |
Example In 2040, as the applicable maximum amount is CHF 7,500 (fictitious amount), Alan, age 50, wants to buy back his pension gaps. He therefore chooses to buy back 2031 (CHF 4,000), 2032 (CHF 1,000) and 2033 (CHF 2,000). He therefore meets all the conditions: √ He buys back gaps of less than 10 years √ He buys back full years √ He pays a total amount equivalent to the current limit (CHF 7,500, maximum fictitious amount) √ He can do this because he has already contributed CHF 7,000 for the year 2040 √ He receives income subject to AVS contributions and has not yet reached the age of 70
How to proceed with the buyback?
As a reminder, it is mandatory to pay the maximum amount for the current calendar year before buying back gaps from the previous year. To apply for a buyback, simply submit a written request directly to your current pension institution. You will then receive instructions to follow.
Conclusion
As the name suggests, pension gaps are undesirable, both for your retirement and your tax situation. But they can happen. Retroactive buyback is therefore a great opportunity to seize, starting next year. If you haven't yet paid the maximum amount in 2025 and don't plan to do so, you can already schedule a payment for 2026.
Tip
Is a buyback a good option for you? And if so, when? Discuss this during a financial planning session with our advisers. All Crédit Agricole next bank clients benefit from this service.
* The maximum amount varies from year to year. In 2025, employees can contribute up to CHF 7,258 and self-employed individuals up to 20% of their annual income, capped at CHF 36,288.