Pillar 3A: how much should you save per month? 

Spoiler: there is no single right answer. It all depends on your situation, your budget and your goals. Let’s break it down so things are clearer. 

What is the maximum amount allowed? 

The third pillar is a voluntary form of savings, but the state encourages you to contribute by offering tax advantages. Each year, you can deduct the amounts paid into a pillar 3A from your taxable income. However, there are legal limits you should not exceed: 

• If you are affiliated with a pension fund: 
  you can contribute up to CHF 7,258 per year, which is around CHF 604 per month. 
• If you are not affiliated with a pension fund: 
  you can contribute up to 20% of your net income, with a maximum of CHF 36,288 per year, or about CHF 3,024 per month. 

But no pressure: you do not need to contribute the maximum for your third pillar to be useful. 

What if I can’t afford that much? 

Good news: every franc counts. Even if you only contribute CHF 50 or CHF 100 per month, you are already moving in the right direction. What really matters is consistency. 
Over the long term, it’s not the one-off amount that makes the difference, but the cumulative effect of monthly contributions, year after year. 

For example, if you contribute CHF 100 per month for 30 years, with a moderate return of 3%, you could end up with more than CHF 58,000 by retirement. That’s far from negligible. And if you can gradually increase your contributions, even better. 

The Pilla solution follows exactly this philosophy and allows you to contribute from as little as CHF 1.00 to a pillar 3A. Because small amounts can add up to something big. 

How do you define your goal? 

Before deciding how much to save, ask yourself a simple question: why do you want to open a third pillar? 

• To supplement your retirement income? 
• To buy a home? 
• To reduce your taxes? 
• Or simply to build up personal savings? 

Depending on your goal and how much time you have until retirement, you can estimate the amount you should aim for. At Pilla, we help you do exactly that by providing an easy-to-use Pillar 3A Calculator. 

Want to optimise your taxes? The maximum limit is your ally 

If your main objective is tax optimisation, then aiming for the annual maximum makes sense. The more you contribute, the more you can deduct and the lower your taxable income becomes. 
This strategy is particularly effective for people with a medium to high income. 

A contribution of CHF 7,000 per year can save you several hundred or even several thousand francs in taxes, depending on your canton and family situation. That’s an immediate benefit, on top of preparing for your retirement. 

Time is on your side 

It cannot be said often enough: the earlier you start, the better. Thanks to compound interest and regular contributions, your savings have more time to grow. 
Even small amounts, invested consistently over many years, can lead to impressive results in the long run. 

That’s why it makes little sense to wait until you “have more”. It’s better to start modestly today than to wait five years to make a large contribution. Time is your greatest ally. 

In short, what should you remember? 

• Save what you can each month, even small amounts matter 
• Be consistent, that’s the key 
• If you want to optimise your taxes, aim for the annual maximum 
• Start as early as possible to benefit from time 

At Pilla, we support you in defining a strategy that fits your pace, your budget and your goals. The third pillar is a powerful tool, as long as you use it with consistency and a long-term view. 

So, how much will you start with?