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Glossary

Staggered Withdrawal (Pillar 3a)

Staggered Withdrawal (Pillar 3a) refers to the strategy of gradually drawing down several 3a accounts in different years shortly before or at retirement. Because each withdrawal is taxed separately at the pension provision tax rate, spreading disbursements across multiple tax years can reduce progression effects and optimise the total tax burden.

At a glance

01

Tax on Pillar 3a capital disbursements is levied separately from other income (Art. 38 DBG); multiple withdrawals in different years are each taxed separately under progression.

02

To make staggered withdrawals, separate 3a accounts must be held in advance, either with different providers or as distinct accounts with the same provider.

03

Withdrawals are possible at the earliest five years before ordinary AHV retirement age (BVV 3 Art. 3).

Frequently asked questions

For a meaningful stagger, three to five separate accounts are typically used, as withdrawals are possible from five years before retirement. Each account should be sized so that the annual disbursement amounts fall within the lowest possible tax progression bracket. The optimal number depends on total individual wealth.

Part of the topic

Säule 3a

Sources: Eidg. Steuerverwaltung (ESTV) · Bundesamt für Sozialversicherungen (BSV) · Systematische Rechtssammlung (fedlex)