Starting from 2025, we will be able to buyback into the 3rd pillar

Baptiste Wicht

Baptiste Wicht

The Poor Swiss
Staff member
Hi

A few years ago, the federal government decided to let us buy back into the 3rd pillar if we had any hole. We finally know all the details about the implementation. However, in the end, there is not much we can do about it, but it will be good for some people.

Starting from 2025, people will be able to buy back into their 3rd pillar if they have not filled some of the years. You can buy back any of the last 10 years. However, this only counts from 2025 onwards, so no way to buy back anything before 2025. It is also important to note that we cannot do buy-back over multiple years, So, if you are missing 5000 CHF in one year, you will not be able to do 2500 CHF over two years. And it is also important to note that you must fully contribute to the current year before you contribute to an older year.

Overall, it is a good system, but it's very limited in its implementation. I can see it being useful for people that start their career now and cannot (or not want to) contribute the max to their 3a. They will be able to pick up once their income goes up.

In the coming months, I will try to write more about it in either a new article or updating an existing article.

What do you think about this new system?
 
It's unfortunate that it is only from 2025.
It will also be interesting to see whether that really increases 3a contributions, or whether people think 'well I can do it next year' and then they don't have 15k on hand.

Do you know what happens if you have 2 missing years? I guess it always fills up the oldest first? Also, i guess there'll be a system to check when and how much gaps you have, otherwise many won't remember 9 years later...
 
Michael said:
It will also be interesting to see whether that really increases 3a contributions, or whether people think 'well I can do it next year' and then they don't have 15k on hand.
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Very good point. Some people will think they have 10 years, but will miss the mark.
Michael said:
Do you know what happens if you have 2 missing years? I guess it always fills up the oldest first? Also, i guess there'll be a system to check when and how much gaps you have, otherwise many won't remember 9 years later...
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There will be a system in place. The 3a providers are now forced to keep track of each year's contributions. But they hopefully already do that. And then they have to pass that information to the next provider if you do a transfer.

From what I have understood, you will be able to choose which year you want to fill up, so it is up to you. But we will probably know a little more once 3a providers implement this.
 
It’s really a shame that nothing can be contributed retroactively to the 3a, especially for people who were not in the country. They could allow a portion, maybe a percentage, like the 2nd pillar, which you can complete.
 
Daniel said:
It’s really a shame that nothing can be contributed retroactively to the 3a
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I highly disagree. Most new laws or regulations should start at their enactment, not retroactively. Yes, in this case, you would benefit from retroactive introduction. But take the oposite case, a tax increase. You also don't want the government to increase taxes retroactively.
 
gaijin said:
I highly disagree. Most new laws or regulations should start at their enactment, not retroactively. Yes, in this case, you would benefit from retroactive introduction. But take the oposite case, a tax increase. You also don't want the government to increase taxes retroactively.
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Well, that's kind of what they plan for the increased 3a taxation at payout, no?
At time of paying in you expect to be taxed with system A, but they introduce system B in the middle of the game (at least it's on the planning board)...

But I agree that it would feel more fair to have all of this happening only for future actions.
 
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