Optimise Pillar 3a Staggering

Upon payout of pension assets, the tax rate increases with the size of the withdrawal -- progression takes effect. Someone who withdraws CHF 300,000 in one year pays significantly more tax than someone who withdraws CHF 100,000 in each of three years. Staggering across different tax years breaks the progression and reduces the overall tax burden. The effect is particularly large in cantons with steep progression for capital withdrawal tax.

The optimal number depends on the total balance and the cantonal tax progression. As a rule of thumb: - Under CHF 100,000 total balance: 2 accounts suffice - CHF 100,000-300,000: 3-4 accounts - Over CHF 300,000: 4-5 accounts Important: 2nd pillar (occupational pension capital) is aggregated in the same year. A pension fund withdrawal in the same year as a 3a withdrawal also increases the progression.

The earlier you open multiple accounts, the better the balance can be distributed evenly. Ideally, begin splitting 10-15 years before retirement. A 3a account can be withdrawn at the earliest 5 years before the standard retirement age. At the latest upon reaching retirement age, all accounts must be liquidated.