“Normal” Withdrawal: Approaching Retirement
Generally, you can withdraw your pillar 3A no earlier than 5 years before the AVS retirement reference age. For your information, from 2028 onwards, the reference age will be the same for both women and men, namely 65. Since 2025, the reference age has been gradually increasing for women.
Of course, you can wait until the official retirement age, or even up to 5 years after (if you continue working, for example). You decide the timing within this window.
“Early” Withdrawal: Exceptional Cases
There are certain situations where you can withdraw your 3rd pillar before retirement. This is called an early withdrawal, and it is regulated by law. Authorized cases include:
Buying your primary residence One of the most common cases. You can use your 3rd pillar to finance the purchase of your main home (not a rental or secondary property). The money can supplement your down payment or repay your mortgage.
Starting a self-employed activity Leaving your salaried job to become self-employed? You can withdraw your 3rd pillar to help launch your business, as long as you’re no longer affiliated with a pension fund.
Leaving Switzerland permanently If you move abroad permanently, you can access your 3rd pillar. Proof of departure is required (official address change, deregistration, etc.).
Becoming disabled If you receive a full disability pension, you can access your 3rd pillar earlier. Unfortunately, the same applies in case of death: the capital is then passed on to your heirs.
What to Watch Out For
Even when withdrawal is allowed, it shouldn’t be done lightly. There are several things to anticipate carefully.
Taxes at the time of withdrawal The 3rd pillar is tax-deductible during the savings phase, but it is taxed when withdrawn. The good news: it’s taxed at a reduced rate, different from your regular income. This rate depends on the canton where you live at the time of withdrawal.
However, beware: if you withdraw a large sum at once, the taxes you pay could be significant due to progressive taxation. The higher the amount, the higher the rate.
Timing to avoid unpleasant surprises A simple tip to limit the tax impact: open multiple 3A accounts. This allows you to spread withdrawals over several years and smooth out taxation. For example, withdrawing CHF 50,000 from a single account in one year will cost more in taxes than withdrawing CHF 25,000 per year over two years from two different accounts.
One Last Tip Withdrawing your 3rd pillar is a key step in your financial planning. It’s best to think about it several years in advance.
Quick Summary:
- You can withdraw your 3rd pillar from age 59/60.
- Early withdrawals are possible in specific cases (home purchase, self-employment, moving abroad…).
- Consider spreading your withdrawals to avoid heavy taxation.