Your financial future: smart retirement savings with the third pillar (3a)

As a physiotherapist in Switzerland, you are probably already making good money, but have you also thought about later? At takeoff, we have already done this, and we are happy to share our knowledge in this area.

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The Swiss pension system offers a unique opportunity to take a tax advantage while building up a solid buffer for your pension. The 3a scheme — also known as the third pension pillar — is one of the smartest financial moves you can make as a working professional.

What exactly is the third pillar?

The Swiss pension system revolves around three pillars. The first two are mandatory: state pension insurance (AHV/AVS) and your company pension (2nd pillar). The third pillar is your personal pension savings. It is voluntary, but offers substantial tax benefits.

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Ensure a higher pension thanks to the 3a scheme

The average AHV guest house in Switzerland is around CHF 1,810 per month - not exactly a luxury amount in an expensive country like Switzerland. The first two pillars usually cover only about 60% of your last salary earned.

By making smart use of the 3a scheme, you create an extra buffer that can make the difference between living tight and living comfortably as a pensioner. And should you ever decide to return to your home country, you'll immediately have a nice piggy bank to take with you.

How much can you invest in 2025?

As an employee, you can deposit a maximum of CHF 7,258 per year into your 3a account in 2025: an increase of CHF 202 compared to 2024. You can fully pay this amount deduct from your taxable income.

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For self-employed people without a company pension, the amounts are higher: up to 20% of their annual income and a maximum of CHF 36,288 per year.

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Why use the 3a scheme?

• Tax benefits that really matter In general, you can save CHF 200 to CHF 400 for every CHF 1,000 you deposit, depending on your income and place of residence. With the maximum amount of CHF 7,258, you can quickly save CHF 1,500 to CHF 3,000 a year in taxes.
• Forced savings work You can only withdraw the money between the ages of 60 and 65, unless you retire early, emigrate or buy your own home. This ensures that you really save for retirement.
• Flexibility in investments Your 3a money doesn't have to be sitting in a savings account. You can choose between savings accounts or investment funds, depending on your risk profile.

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New pension options from 2025

From 2025, you can contribute “retroactively” to your 3a. This means that you can still deposit afterwards for years in which you have not deposited the maximum amount. Suppose you only invested CHF 4,000 in 2025 instead of the maximum CHF 7,258, you can still make up that CHF 3,258 “missed” contribution a later year, on top of your regular annual deposit.

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This arrangement gives you more flexibility. You can still fill “gaps” up to 10 years later, but only for years from 2025.

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Smart tips for physios in Switzerland

The most important advice? Start as early as possible, even if you're just starting out as a physical therapist. Due to the compound interest effect, your money will be significantly higher in retirement. The timing of your investment also matters: if you deposit the maximum amount at the beginning of the year, you will benefit from interest throughout the year. Please note that your payment will be in your 3a account no later than December 31.

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Once you've saved between CHF 30,000 and CHF 50,000, it's wise to open a second 3a account. When paying out, you can then withdraw in phases in different years, which is more beneficial for tax.

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What do you pay attention to?

Retirement planning is an important topic that affects your entire financial future. It pays to read up carefully and possibly seek advice from a pension advisor who knows the Swiss market. Here are the key points to consider:

• Choose the right provider The differences in interest rates between providers can be quite significant. Compare regularly and switch to a better provider if necessary.
• Save or invest? Long-term investments usually pay more than savings accounts, but there are strict rules for when and how to withdraw the money.

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What if you move abroad?

In case of permanent emigration, you can have your full 3a balance paid out, regardless of which country you move to. You have two options: withdraw the money immediately upon emigration, or leave it until you retire.

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If you withdraw the money immediately, you pay Swiss withholding tax. The percentage depends on the canton where your 3a provider is located. If you leave the money behind, you will continue to benefit from tax-free growth.

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An important tip: Make sure you only withdraw the money after your official deregistration from Switzerland and registration in your new home country. Then the more favourable with holding tax applies.

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Invest in later

Setting up your 3a pension savings is an investment in yourself and your future. A little bit of advance planning can save you a lot of stress and financial worries later.

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Whether you're just starting out as a physiotherapist in Switzerland or you've been working for years, it's never too early and rarely too late to get your retirement planning in order. A successful life in Switzerland is more than just doing a good job. It's also about making smart use of the financial opportunities that this country offers you. Want to know more about what this means specifically for your situation? At takeoff, we have your own financial advisors (with knowledge of both the Netherlands and Switzerland!) who guide us and our therapists with complex financial issues.

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Want more practical tips about living and working in Switzerland? Then check our blog! And do you have questions about working as a physiotherapist in Switzerland, are you considering emigrate or do you want to get in touch with one of our financial advisors in advance? Then you can always contact record with us.

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