The Swiss pension system is based on the three-pillar principle:
the state, employers and private individuals all contribute.

The first pillar is designed to ensure a basic level of subsistence.
It insures everyone living and working in Switzerland.
Employers and employees are jointly responsible for the second pillar.
Here, each person accrues their personal retirement capital.
The third pillar is a purely private pension.
In this case, it is up to each individual to build up a reserve of funds for old age voluntarily.

For many people, the benefits provided by the first and second pillars are not enough to retire on, which is why we recommend investing in the third pillar as soon as you can.

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Pillar 1 – state pension

This includes old-age and survivors’ insurance (OASI/AHV/AVS), disability insurance (DI/IV/AI) and any supplementary benefits (EL/PC). The purpose of the first pillar is to cover basic living expenses adequately. It is mandatory for the entire population. More about pillar 1

Pillar 2 - occupational pension

The occupational old-age, survivors' and disability pension provision (BVG/LPP) and the Accident Insurance Act make up the second pillar. It is compulsory for employees with an annual income of 21,330 francs or more. Together with the first pillar (OASI/DI), the benefits of the occupational pension scheme are designed to enable the beneficiary or beneficiaries to maintain their previous lifestyle in old age or in the event of death or disability. More about pillar 2

Pillar 3 – private pension

The third pillar complements the first and second pillars. Private savings or the purchase of residential property are ways to bridge potential gaps in your pension provision. The third pillar is optional. There are two types of third pillar plans:

Pillar 3a – restricted pension plan
Restricted pension products (pillar 3a accounts, pension funds, insurance policies) are available from pension foundations that are closely tied to banks and insurance companies. These products offer tax benefits.

Pillar 3b– unrestricted pension plan
Pillar 3b is an unrestricted pension plan. It can take the form of savings and other bank accounts, life insurance, securities, residential property and so on. This type of pension is available to anyone. Unlike pillar 3a, pillar 3b does not offer any tax benefits. On the other hand, it is more flexible and not limited to people whose income is subject to OASI.

What should I bear in mind when planning my pension?

The possibility of a pension shortfall

At present, retirement benefits amount to approx. 60% of the income generated from the time you were in gainful employment. However, practical experience shows that you need around 70-80% of your final salary to maintain your standard of living. If you do not wish to risk a financial shortfall, you need to bolster your private pension. More on pension shortfalls

How and when it can come about

The Swiss social security system was designed at a time when the world looked quite different. There were fewer divorces, single parents, unmarried couples and same-sex couples. Part-time workers were typically married women. So it is not surprising that it is these groups of people in particular who have poorer pension cover in the first two pillars of the Swiss system. Although a few changes have now been made, the need for individuals to take out private pensions is still very high. If you belong to one of the above-mentioned groups of people, it is particularly important to review your pension.

Calculate your pension shortfall

Decades ago, when our social security system was established, no one foresaw developments such as the decline in the birth rate, negative interest rates and greater life expectancy. This has resulted in ever-increasing pension shortfalls. It is therefore more important than ever to deal with the subject of pensions as early as possible. Gain an overview of your future financial situation in less than a minute. Calculate your pension shortfall here

Pension tips for every life situation

Tips for young people

Who knows what the future will bring? Flexibility and independence are important to young people. Nevertheless, it makes financial sense to start saving for a pension early on. Find out why here.

Tips for young people

Travel without regret

More and more people nowadays are fulfilling the dream of taking a longer time-out, often to travel, even around the world. Find out here how this might affect your pension.

Tips for globetrotters

In your mid-life years

What you decide now will shape your financial future. When it comes to pensions, you need discipline and patience. We explain how to find the right strategy for you and your goals.

Tips for adults

The right pension for people with families

Being responsible for a family raises specific questions with regard to pensions. Find out here which solutions are available that fit your needs.

Tips for families

Your own home thanks to pension savings

The capital you accumulate by means of pension savings can help you realize the dream of owning a home. Find out here what to watch out for.

Tips for financing a home purchase

Self-employed and self-responsible

Entrepreneurial freedom brings with it extra responsibility for many things. If you want to save for retirement, you need greater discipline and more expertise. Here are some valuable tips.

Tips for self-employed people

How to prepare properly for retirement

When you retire, your financial situation will change significantly. The decisions you make now will determine your standard of living in retirement. We explain what matters.

Tips for retirees

Retirement: decision time

The time has nearly come for you to retire. Now you need to decide whether to withdraw your capital in one go or draw a monthly pension. We explain how to make the right choice.

Pension or lump sum?

Free advice on retirement pensions

The subject of pensions is complex. There is often not enough time to research everything in detail. If you wish, you can seek advice from our partner service Optimatis. Our experts have the information that you may spend a long time searching for. Benefit from their expertise by arranging a no-obligation consultation.

The independent partner service Optimatis and its qualified staff will work with you to establish a clear overview and produce a snapshot of your current situation. Optimatis can offer you the solution that best fits your needs from the wide range available on the market – a good reason to seek advice from an independent expert.

You just need to request an appointment and a specialist advisor will be in touch with you. During the meeting, you can decide how and whether you wish to proceed with the solutions proposed.

Request no-obligation advice

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Pensions

The three-pillar principle in simple terms

What should I bear in mind when planning my pension?

Pension tips for every life situation

Tips for young people

Travel without regret

In your mid-life years

The right pension for people with families

Your own home thanks to pension savings

Self-employed and self-responsible

How to prepare properly for retirement

Retirement: decision time

Free advice on retirement pensions

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