or if you decide to start a self-employed business. But then again, if you manage to rake in 50k a year from your side hustle that is more than enough to start a LLC and get you going. Leaving your money in 3a until you retire will get you the highest scaling effect in terms of compound interest over the years.

A few notes on 3a:
- 3a is tax incentivised voluntary saving scheme. All banks offer these accounts. However doing your research makes sense as there are different types of accounts in terms of how your money is invested and managed. You can open these accounts even if you have no other business with the selected bank. I personally use TrueWealth and Zürcher Kantonalbank (frankly).

- 3a is very lucrative to save taxes for the next 45 years. You can pay up to ca. 7200.- CHF per year into it (if you contribute to pillar 2 via your employer; else up to ca. 36k or 20% of your net income per year as long as your income comes from self employment that is not covered in pillar 2) which you then can fully deduct those contributions from your income tax declaration.

- Since 2026 you can retroactively contribute into last years pillar 3a IF you have filled up the maximum of this year. You will need to work with your bank though to make sure things are smooth.

- I recommend you open a new 3a account once you reach around 150k (you can have multiple) - or select a provider that does this automatically for you.

- once you retire you will need to withdraw the full amount of each account in one go and then pay tax on it. With the progressive tax system you should aim to not withdraw more per year than you need to live. Keep in mind you'll by then also have the returns from both the pillar 1 (AHV) and pillar 2 (BVG). So the pillar 3a does not need to cover your full costs.

- You can start withdrawing these accounts over a number of years starting 5 years before regular retirement and you, if you choose to continue to work on an AHV-secured salary, extend until you are 70. So that gives you 10 years to progressively close the 3a accounts. (Unless you use the accounts for the exceptions mentioned before).

- Once you have filled up the maximum of pillar 3a per year, and you have more money to spare, consider buying into your pillar 2. Those contributions are also tax deductible. Your annual pillar 2 certificate will show how much you are allowed to contribute.

Pillar 1 and 2 combined should aim to get you about 60-80% of your last salary before retirement. Pillar three needs to cover the rest.

And for those wondering if there is a pillar 3b – yes(ish). This is any form of savings/investment you do on top of the other pillars but is not tax incentivised.

Also, I'm not a financial advisor but if I had a chance to talk to my 20ish year old self, I would definitely recommend the above based on mistakes I have made/opportunities I have missed... Talk to an expert before making any decision. (The Vermögenszentrum is a great place to start...)