Pillar 3a Dashboard

Should you invest in pillar 3a this year? Compare the net outcome of a 3a contribution to an equivalent private investment. The calculations are performed for the Canton of Zürich.

Personal Details

Civil status i Your civil status affects tax brackets. This has an effect on withdrawal and wealth tax rates in Zürich.

Employment type i Employees can automatically calculate their tax savings. Freelancers have different deduction limits and can input their savings manually.

Municipal tax multiplier (%) i The Steuerfuss of your municipality, expressed as a percentage. For Zürich city this is 119 %. If you pay church tax, you can simply add it here (e.g., +10%). Combined with the cantonal multiplier (95 %), this determines the total wealth tax.

Taxable income (CHF) i Your taxable income (steuerbares Einkommen) before the Pillar 3a deduction. This is used to accurately compute your tax savings automatically.

Pillar 3a contribution (CHF) i The amount you plan to invest in pillar 3a this year. The legal maximum for employed persons with a pension fund is CHF 7258 pp (2026), though the field accepts higher numbers.

Years to withdrawal i Number of years until the 3a capital is withdrawn. Typically at retirement (age 65) or up to 5 years earlier.

Investment Assumptions

Market Scenario

Provider Fee Tier

Advanced Configuration ▼

Expected return — 3a (%/yr) i Estimated annual gross return on your pillar 3a investment before fees. Historically, an equity-heavy global portfolio measured in CHF returns around 6.0–7.0% p.a. due to the strong Swiss Franc.

Fee — 3a (%/yr) i Annual management fee (TER) charged by your 3a provider. Typical range: 0.39 %–1.0 %. Low-cost digital providers charge around 0.39–0.5 %.

Fund distribution type i Accumulating funds automatically reinvest dividends (fact sheet returns include dividends). Distributing funds pay out dividends (fact sheet returns often only show price return).

Expected return — private (%/yr) i

Dividend yield — private (%/yr) i

Fee — private (%/yr) i Annual management fee (TER) for the private investment vehicle. Broad-market ETFs typically charge 0.03–0.3 %.

Advanced: Existing Wealth & Macroeconomics ▼

Existing Portfolio

Your current balances determine which tax brackets apply. They are not shown in the chart — only this year's contribution is compared.

Current pillar 3a balance (CHF) i Your total current pillar 3a balance across all accounts. This determines the withdrawal-tax bracket for the additional contribution — a higher existing balance pushes your contribution into a higher marginal tax rate.

Current private investment portfolio (CHF) i Your current taxable private investment portfolio (movable assets). This determines the wealth-tax bracket for the additional private investment. A higher existing portfolio means more marginal wealth tax on the new contribution.

Macroeconomic Assumptions

Inflation rate (%/yr)

Real wage growth (%/yr) i Estimated annual salary increase above inflation. This models 'bracket creep' pushing you into higher tax brackets over time.

Inflation mode i How to handle the impact of inflation on long-term compound growth and progressive tax brackets.

Pillar 3a Net Value

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Private Net Value

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Difference

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Withdrawal Tax

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Initial Tax Savings

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Methodology & Assumptions

The calculator compares two strategies based on the same economic sacrifice: investing a given pre-tax amount into pillar 3a, versus investing its post-tax equivalent privately (the gross amount minus the marginal income tax incurred by foregoing the 3a deduction).

3a path: Tax-free compounding at return − fee. At withdrawal a one-off capital-benefits tax is deducted (Canton of Zürich rates).

Private path: Compounding at return − fee − tax_drag, minus annual wealth tax (Zürich, Einfache Staatssteuer); No additional tax at liquidation (capital gains on movable private wealth are tax-free in Switzerland).

Prior balances & marginal taxes: Existing pillar 3a balance and private portfolio are grown in parallel to the contribution to determine the correct tax bracket each year. The marginal wealth tax charged to this year's private contribution equals wealthTax(prior_pr + contrib) − wealthTax(prior_pr). Likewise, the withdrawal tax is the marginal difference: withdrawalTax(prior_3a + contrib) − withdrawalTax(prior_3a). This ensures the chart and KPIs reflect only the impact of this year's decision, at the correct marginal tax bracket.

Wealth tax brackets follow the published cantonal schedule (Einfache Staatssteuer) and are multiplied by the Steuerfuss (cantonal 95 % + municipal multiplier entered above) to obtain the total wealth tax.

Tax Precision: Withdrawal taxes are calculated using exact 2026 progressive tax brackets for both the Federal (Direkte Bundessteuer) and Zürich Cantonal (Einfache Staatssteuer) levels, executing the legal 1/5th and 1/20th calculation methodologies, respectively and taking into account the minimal 2% tax for the latter. If selected, inlfation adjustments to the tax brackets are taken into account.

Limitations: Both prior balances are grown with the same return / fee assumptions as the new contribution. No stochastic returns or multi-account staggering is modelled.

Disclaimer

This calculator is provided for informational and educational purposes only and does not constitute financial, tax, or investment advice. The results are based on simplified models and publicly available tax data for the Canton of Zürich and the State of Switzerland; they may not reflect your individual circumstances, future legislative changes, or the full complexity of Swiss tax law.

No reliance should be placed on the outputs of this tool when making financial or investment decisions. Always consult a qualified financial advisor or tax professional before acting on any information presented here. The author accepts no liability for any loss or damage arising from the use of, or reliance on, this calculator.

Privacy: This calculator runs in your browser. No input data is permanently stored or sold to third parties.

Advantage

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