Tax deduction by buying into the Swiss pension fund

As with Pillar 3a, pension fund purchases can be fully deducted from taxable income. In addition to precautionary considerations, a pension fund purchase therefore often has the goal of breaking the tax progression on income. Purchases should be planned in the long term and tailored to the individual tax situation. The correct procedure can significantly optimize tax savings. You can find the purchasing potential on your pension fund card or you can find out directly from your pension fund.

Stagger shopping into the pension fund

Tax savings through payments into the pension fund are about optimally breaking the tax progression. If you can spread the effect over several years, the tax savings increase accordingly. This is a consequence of the progressive tax system in Switzerland. Buy yourself into the pension fund in a year in which you make no or less other tax deductions than usual (e.g. property maintenance etc.) or in years with a particularly high income. Analyze your personal progression curve and determine how high a pension fund purchase should be, so that the effect is not watered down too much.

Tax savings by staggering the payments from pillar 3a and the pension fund

The payment of pension capital from pillar 3a and the pension fund is subject to a so-called capital payment tax, which, like income tax, is subject to a progression. In the vast majority of cases, the tax savings from staggering pillar 3a and pension fund payments are considerable. It is possible to open several pillar 3a accounts / custody accounts in order to draw them at a later date in different tax periods and separately from the pension fund capital. Pension capital (2nd pillar and pillar 3a) that are paid out in the same years are counted together. Accounts or deposits in pillar 3a can only be drawn in full. In a few cantons, there are exceptions to the payment of pension capital.