Expat professionals in Switzerland can save thousands every year by maximising their 2nd & 3rd pillar contributions. Here’s how
Many expats don’t realise that Switzerland’s pension system offers powerful tax relief. Without proper planning, you could be leaving thousands on the table every year.
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Second pillar buybacks
Making additional voluntary contributions, known as buybacks, into your Swiss second pillar can be a highly tax-efficient way to strengthen your retirement savings. Each buyback is usually fully tax-deductible, meaning you reduce your taxable income in the year you contribute, while also boosting your future pension benefits. Over time, this strategy not only helps close any pension gaps but also allows your capital to grow in a low-risk, tax-advantaged environment, making it an attractive tool for long-term wealth planning.
Even expats should use their 2nd pillar
If you leave Switzerland you can still take your pension with you. *Different rules apply depending on your destination.
Third pillar pension contributions
For the 2025 tax year, you can invest up to CHF 7,258 into your Swiss third pillar (Pillar 3a) and receive tax relief on the full amount. This makes it one of the most effective ways to reduce your tax bill while building long-term retirement savings. There are a variety of ways to structure your Pillar 3a — through a life insurance company, your bank, or a range of investment options. Choosing the right solution depends on your personal circumstances, how long you plan to remain in Switzerland, and your future financial goals. Making the right decision today can have a significant impact on your wealth and flexibility tomorrow.
Maximising your third pillar
Will generate tax relief of just over 2,000 CHF
Why not try our online tax calculator
Find out how much tax relief you can benefit from this year by making additional 2nd pillar and 3rd pillar pension contributions.
Bank vs Insurance
When setting up a third pillar, you generally have two main options: with your bank or with an insurance company. A bank-based solution offers more flexibility and investment choice, making it well-suited for expats who may not stay in Switzerland long term. An insurance-based solution, on the other hand, combines retirement savings with protection benefits such as life or disability cover, and can be especially attractive for those planning to purchase a home or remain in Switzerland permanently. The right choice depends on your goals, time horizon, and need for flexibility versus security.
Which option is right for you?
Speak with one of our advisors today and they will be able to guide you on which solution is best suited for your personal circumstances.
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