# Pillar 3a contribution when when switching to full time studying **URL:** \ **Category:** Banks, Insurances & Third Pillar\ **Created:** [January 10, 2023, 10:04am UTC](https://forum.mustachianpost.com/t/pillar-3a-contribution-when-when-switching-to-full-time-studying/9579 "2023-01-10T10:04:46Z")\ **Posts on this page:** 1\ **Showing post:** 3
**Author:** ![Cortana](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/cortana/32/2082_2.png) [@Cortana](https://forum.mustachianpost.com/u/Cortana)\ **Post date:** [January 10, 2023, 11:35am UTC](https://forum.mustachianpost.com/t/pillar-3a-contribution-when-when-switching-to-full-time-studying/9579/3 "2023-01-10T11:35:34Z")
Market return: 7%/year (of which 2% are dividends) Time horizon: 30 years IBKR TER: 0% Viac TER: 0.50% Marginal tax rate: 25% Withdrawal tax rate: 8% Yearly max contribution: CHF 7‘000 As dividends are taxed outside of your 3rd pillar, the expected return after costs/taxes will be identical (6.5%). Meaning: 7k/year for 30 years with 6.5% return gets you to 646k. A) You don‘t use the 3rd pillar and only use IBKR, you‘ll get to 646k. B) You use the 3rd pillar and save CHF 1‘750 per year in taxes which you can additionally invest in IBKR. Gives you an additional 161k after 30 years. Wihdrawing 646k from the 3rd pillar will cost you 52k in taxes. So you‘re still better off by ~100k. It‘s a no-brainer for me. > [@MustachianStudent](#): > > As far as I understood, for this year I can deposit the full amount of 7056, because I was employed at the beginning of the year. Is that the case? Yes. --- _[View the full topic](https://forum.mustachianpost.com/t/pillar-3a-contribution-when-when-switching-to-full-time-studying/9579)._