What is the 3rd pillar and why is it important to me?
The Swiss system is based on three pillars of pension provision. The AVS (1st pillar) guarantees a minimum income, the 2nd pillar (LPP) supplements this income with professional contributions, and the3rd pillaris private and voluntary savings.
Many cross-border workers believe that this third pillar does not apply to them. However, it can be an essential tool for preparing for retirement, financing a real estate project, or even reducing your taxes.
What are the differences between the 3rd pillar A and the 3rd pillar B?
Pillar 3a: linked pension provision
It is reserved for people working in Switzerland and affiliated with the AVS. Contributions aredeductible from taxable income, up to an annual ceiling set at7,258 CHF and 2025for employees. Savings remain blocked until 5 years before the legal retirement age, with some exceptions (property purchase, permanent departure from Switzerland, independence).
Pillar 3b: free pension provision
More flexible and open to everyone, including cross-border commuters, it has no contribution ceiling or duration requirement. It can accommodate various forms of savings: life insurance, bank investments, real estate. Tax benefits are more limited and vary by canton, but flexibility remains its greatest asset.
I am a cross-border worker, can I really open a 3rd pillar?
Yes, in most cases.
If you areborder resident quasi-resident in Geneva, you can contribute to pillar 3a and benefit from the same tax advantages as a Swiss resident.
If you are a border resident in another canton, thepillar 3bremains accessible. You won't always benefit from the tax deduction, but you can still build flexible and secure retirement savings.
What is the best solution: banking or insurance?
The banking pillar
This is the most flexible option. You can change your contribution amount or even suspend your payments if your circumstances change. Fees are generally lower, but there is no coverage in the event of death or disability.
The insurance pillar
It combines savings and protection. In addition to retirement savings, you are insured against death and disability risks. In return, contributions are fixed and fees are higher. It's an attractive solution for those looking to protect their families.
Can I withdraw my 3rd pillar before retirement?
Yes, but only in certain specific cases:
Purchase of a primary residence: many cross-border workers choose to use their 3rd pillar to finance their home in France.
Transition to independence: if you become self-employed, you can withdraw your assets to invest in your business.
Final departure from Switzerland: if you leave the country, you can get your funds back.
What taxation applies to the 3rd pillar?
“If I withdraw my 3rd pillar, how much tax will I pay?”This is a frequently asked question. Capital is taxed separately from other income, often at a more favorable rate. The amount depends on the canton and your place of residence at the time of withdrawal. For cross-border commuters, it is therefore crucial to plan carefully to reduce the tax burden.
Is it worth it if I don't have a tax benefit?
Yes. Even without tax deduction, the 3rd pillar remains an effective solution for:
build up retirement savings,
finance a personal project,
protect his family,
diversify your assets.
Pillar 3b, for example, is used by many cross-border workers as “flexible savings” that adapts to their cross-border working life.
How can I optimize my 3rd pillar with mybestfx.ch?
Most cross-border commuters forget that every Swiss franc they save will one day have to be converted into euros. This is where mybestfx.ch comes in:
Competitive exchange rates: save every month compared to banks.
Zero hidden fees: your contributions and withdrawals are optimized without any unpleasant surprises.
Personalized support: advice tailored to cross-border workers to anticipate taxes and withdrawals.
By combining a foresight strategy and optimized exchange rates, you keep more purchasing power for your future.
Frequently asked questions from cross-border workers about the 3rd pillar
Can I open a 3rd pillar if I work in Switzerland and live in France?Yes. Pillar 3b is available to everyone. For pillar 3a, it depends on your tax status.
What is the main advantage of pillar 3a?Every franc contributed reduces your taxable income. This represents immediate tax savings, in addition to retirement savings.
What if I leave Switzerland before retirement?You will be able to withdraw your capital. The conditions vary depending on whether you remain in the EU/EFTA or not.
How much can I save?In 2025, the ceiling for pillar 3a for employees is CHF 7,258. For the self-employed, the ceiling is higher (20% of annual income, up to CHF 36,792).
Conclusion
For cross-border workers, the Swiss third pillar isn't just an option: it's a powerful tool for securing your future, reducing your taxes, and financing concrete projects. While the rules vary depending on your status, there's always a suitable solution.
With mybestfx.ch, you not only have the opportunity to optimize your CHF/EUR exchange rate, but also to support your retirement decisions with greater clarity and confidence. Preparing for tomorrow starts today.