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.

Municipal tax multiplier (%) i The Steuerfuss of your municipality, expressed as a percentage. For Zürich city this is 119 %. Combined with the cantonal multiplier (95 %), this determines the total wealth tax.

Tax savings (CHF) i The income tax saved by deducting the 3a contribution from taxable income. Use the Swiss federal tax calculator to compare two scenarios — with and without a 3a contribution — and enter the difference.

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Years to withdrawal i Number of years until the 3a capital is withdrawn.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

Expected return — 3a (%/yr) i Estimated annual gross return on your pillar 3a investment before fees. Equity-heavy 3a funds have historically returned 4–6 % p.a.

Expected return — private (%/yr) i Estimated annual gross return on the private alternative investment before fees. A global equity ETF has historically returned 5–8 % p.a.

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 %.

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

Tax drag — private (%/yr) i Annual tax burden on investment returns (ie, withholding tax on dividends, income tax on interest). Depends on fund structure, domicile, and personal tax rate. You may estimate it by dividing last year's taxes on a private portfolio by its net value.

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.

Adjust the inputs above to see results.

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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Methodology & Assumptions

The calculator compares two strategies that start from the same economic sacrifice: Either invest X into pillar 3a, or invest X − additional_taxes privately (the amount of taxes payed for having a higher taxable income without pillar 3a deductions).

3a path: Tax-free compounding at return − fee. At withdrawal a one-off capital-benefits tax is deducted (Canton of Zürich, city 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 (using the same return assumptions) to determine the correct tax bracket each year. The marginal wealth tax charged to this year's private contribution equals wealthTax(prior + contrib) − wealthTax(prior). 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 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.

Limitations: Withdrawal-tax brackets are a piecewise-linear approximation of published Zürich city rates. Both prior balances are grown with the same return / fee assumptions as the new contribution. No inflation adjustment, 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; 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.