In principle, pillar 3a assets must be withdrawn by the time you reach the regular AHV age of 64/65 at the latest. However, the withdrawal may be postponed for a further five years up to a maximum of age 69/70, as long as income subject to AHV contributions is earned after retirement. While continuing to work with income subject to AHV, contributions may continue to be made to pillar 3a up to a maximum of age 69/70.
The permitted amount corresponds to the usual maximum contributions. For employees with a pension fund connection, the small pillar 3a maximum amount applies and for self-employed persons without a pension fund, the large amount or a maximum of 20% of the net earned income applies.
Can I still pay into pillar 3a in the year of retirement?
Yes, even in the year of retirement, contributions can be made up to the retirement date. The amount deposited again depends on whether or not a pension fund connection is available. On the other hand, it does not matter if only a fraction of the year has actually been worked. Even if the AHV age is reached in mid-January, contributions to pillar 3a may still be made at the beginning of January. This also applies to other reasons for withdrawal, such as leaving Switzerland. Whether it is worthwhile from a tax point of view, however, must be clarified separately in each case and depends on income, place of residence, etc.
If you have several pillar 3a accounts, it is advisable to withdraw these 3a accounts in a staggered manner over several tax periods. This can “break” the tax progression, which can lead to an overall reduced tax burden.
Proof of continuation
VIAC customers automatically receive an e-mail with the application form for the continuation of pension provision before they retire. In addition to the signed form, the Foundation also requires the following confirmation of employment:
Employee: A written confirmation from the employer showing employment even after reaching AHV age.
Self-employed persons: A current confirmation from the AHV compensation fund showing that AHV contributions continue to be paid.
This proof must be provided once. If the employment activity is terminated, this must be communicated to the Foundation. In this case, the 3a relationship must be closed and contributions can no longer be made.