Staggered 3rd pillar withdrawal
Staggering 3rd pillar withdrawals is one of the most effective and simplest tax strategies to implement in Switzerland. By spreading your assets across multiple accounts and withdrawing them in different years, you can save several thousand francs in taxes. Here is how to optimize this strategy.
The principle: tax progressivity
When withdrawing the 3rd pillar, the capital is taxed separately from ordinary income, but at a progressive rate. This means:
- A withdrawal of CHF 50,000 is taxed at a lower rate than a withdrawal of CHF 200,000
- All pension withdrawals made in the same year (3rd pillar + 2nd pillar) are added together for tax calculation
- Both spouses' withdrawals made in the same year are accumulated
Key rule: The less you withdraw in a single tax year, the lower the tax rate. This is the foundation of the staggering strategy.
Concrete example: the impact of staggering
Take the example of a person domiciled in the canton of Vaud with total capital of CHF 200,000 in 3rd pillar:
Scenario 1: Lump-sum withdrawal
| Year | Amount withdrawn | Tax (approx.) |
|---|---|---|
| 2026 | CHF 200,000 | CHF 18,500 |
| Total | CHF 200,000 | CHF 18,500 |
Scenario 2: Staggered withdrawal over 4 years
| Year | Amount withdrawn | Tax (approx.) |
|---|---|---|
| 2026 | CHF 50,000 | CHF 2,600 |
| 2027 | CHF 50,000 | CHF 2,600 |
| 2028 | CHF 50,000 | CHF 2,600 |
| 2029 | CHF 50,000 | CHF 2,600 |
| Total | CHF 200,000 | CHF 10,400 |
Savings achieved: CHF 8,100
A 44% tax reduction thanks to staggering over 4 years. Use our withdrawal tax calculator to simulate your own situation.
How many 3a accounts to open?
The optimal number of accounts depends on your total capital and withdrawal horizon. Here are our recommendations:
| Target total capital | Number of accounts | Amount per account |
|---|---|---|
| Less than CHF 50,000 | 2 accounts | CHF 25,000 each |
| CHF 50,000 - 150,000 | 3 accounts | CHF 17,000 - 50,000 each |
| CHF 150,000 - 300,000 | 4-5 accounts | CHF 30,000 - 75,000 each |
| More than CHF 300,000 | 5 accounts | CHF 60,000+ each |
For a detailed guide, see our page on how many 3rd pillar accounts to open.
How to implement staggering
Step 1: Open multiple accounts
Open your 3a accounts with different institutions (or the same one, it does not matter). There is no limit on the number of 3a accounts, but the total annual contributions remain capped at CHF 7,258 (employees with 2nd pillar, 2026 amount). You distribute this amount freely between your different accounts.
Step 2: Fund accounts in a balanced manner
For staggering to be effective, your accounts must contain comparable amounts at the time of withdrawal. You can for example:
- Fund a single account each year and switch to a different account the following year
- Spread your annual contribution across all your accounts
- Concentrate payments on the smallest account to balance them
Step 3: Plan the withdrawal calendar
From age 60, close one account per year. Important points:
- Do not withdraw a 3rd pillar in the same year as a 2nd pillar withdrawal to avoid accumulation
- If you are a couple, coordinate withdrawals to avoid accumulation in the same tax year
- Start with the largest accounts to stay in lower brackets
Coordinating with the 2nd pillar
2nd pillar and 3rd pillar withdrawals made in the same year are added together for tax calculation. It is therefore essential to plan both jointly:
- Withdraw your 2nd pillar in a different year from your 3a accounts
- If you have vested benefits (following a divorce or employer change), include them in your planning
- EPL withdrawals (real estate) from the 2nd pillar also count in the annual accumulation
Staggering for couples
For married couples, both spouses' pension withdrawals are added together in the same year. The optimal strategy is therefore to:
- Ensure each spouse has their own 3a accounts
- Alternate withdrawal years between spouses
- Open 3 to 5 accounts per person, i.e. 6 to 10 accounts total for the couple
Example for a couple: With 4 accounts each and a withdrawal window of 60 to 65, the couple can spread 8 withdrawals over 6 years (alternating years) and thus keep each withdrawal below CHF 50,000 - 70,000.
Limitations of staggering
A few points to note:
- One account = one withdrawal: A bank 3a account cannot be partially withdrawn. You must close it entirely.
- No retroactive splitting: You cannot divide an existing account into multiple accounts. You must plan ahead.
- Limited timeframe: If you only have one account at age 60, it is too late to stagger (except by opening a new account and waiting a few years).
- Multiple fees: Some institutions charge management fees per account, but the tax savings far outweigh them.
Simulate your tax savings
Every situation is different. Use our tools to determine the optimal strategy:
Withdrawal tax calculator
Compare the tax between a lump-sum withdrawal and a staggered withdrawal by canton.
3rd pillar savings calculator
Project the total capital you will accumulate and plan the distribution between your accounts.
Want to open new 3a accounts to prepare for staggering? Compare the best offers for free.
Staggering examples by canton
The savings achieved through staggering vary greatly by canton of residence. The progressivity of capital benefits tax differs from one canton to another, making certain cantons particularly advantageous for this strategy. Here are concrete examples for three French-speaking cantons.
Canton of Geneva
Geneva applies a relatively high tax rate on capital benefits, with strong progressivity. For total capital of CHF 250,000, a lump-sum withdrawal would generate a tax of approximately CHF 20,000 to CHF 22,000. By staggering over 5 years (CHF 50,000 per year), the total tax drops to approximately CHF 10,000 to CHF 12,000, i.e. savings of around CHF 9,000 to CHF 10,000. Geneva is one of the cantons where staggering is most profitable due to the strong progressivity of its scales.
Canton of Neuchatel
Neuchatel is among the most expensive cantons for capital pension withdrawal tax. For capital of CHF 200,000, the lump-sum tax is around CHF 20,000. By spreading over 4 withdrawals of CHF 50,000 per year, the total tax is around CHF 12,000, representing savings of approximately CHF 8,000. Staggering is therefore particularly recommended for Neuchatel residents with significant 3a capital.
Canton of Valais
Valais has intermediate tax rates. For CHF 200,000 withdrawn at once, the tax is approximately CHF 14,000. By staggering over 4 years, it drops to approximately CHF 8,500, i.e. savings of CHF 5,500. Even in a canton with moderate taxation, staggering remains advantageous once total capital exceeds CHF 80,000 to CHF 100,000.
To calculate the exact savings in your canton, use our withdrawal tax calculator and compare scenarios with and without staggering.
Staggering for the self-employed: a major issue
Self-employed workers without a pension fund (2nd pillar) deserve particular attention regarding staggering. Indeed, they can contribute up to 20% of their net business income, with a ceiling of CHF 36,288 per year in 2026. Over a career of 25 to 30 years, accumulated capital can easily exceed CHF 500,000, or even CHF 800,000 for high-income self-employed.
Why staggering is even more crucial for the self-employed
With such significant amounts, the impact of tax progressivity is multiplied. A lump-sum withdrawal of CHF 600,000 in the canton of Vaud would generate a tax exceeding CHF 60,000. By staggering over 5 years (CHF 120,000 per year), the total tax drops to approximately CHF 36,000, i.e. potential savings of CHF 24,000. The higher the capital, the more profitable staggering becomes.
Recommended strategy for the self-employed
Self-employed without a 2nd pillar should ideally open 5 pillar 3a accounts as early as possible and distribute their contributions in a balanced manner. Additionally, they can consider opening a voluntary vested benefits account or a 1e solution to diversify pension vehicles and multiply staggering possibilities.
- From age 40: open 5 accounts and distribute contributions
- From age 55: simulate different withdrawal calendars with the tax calculator
- From age 60: start closing one account per year, beginning with the largest balances
- Up to age 70: if activity continues, take advantage of the extended window to spread withdrawals over 10 years
The self-employed benefit from a particular advantage: by continuing to work after 65, they have a 10-year withdrawal window (60-70), allowing them to withdraw one account every two years while remaining in advantageous tax brackets. See our withdrawal conditions to check your eligibility based on your situation.