The Swiss government has announced a significant change to the 3a pillar, allowing individuals to make retroactive contributions for up to ten years.

This decision, effective from 2025, enables those who haven't maximized their annual contributions to fill these gaps, potentially reducing their taxable income.

However, this move is expected to result in a loss of 100 to 150 million Swiss Francs in federal tax revenue annually, with additional losses at the cantonal and municipal levels.

The decision has sparked controversy, with critics arguing that it primarily benefits high-income earners who can afford such contributions.

Despite the government's initial resistance, the change was mandated by a parliamentary motion, highlighting the ongoing debate over tax privileges and fiscal responsibility in Switzerland.