Starting a family: 5 tips on providing for the future

1. Arrange insurance for your child before birth

New family members also need health insurance. You need to arrange this within three months of birth. However, you can also do this before the child is born. Then, after the birth, all you need to do is inform the insurer of their name and date of birth. The advantage of arranging insurance before the birth is that most supplemental insurance products can be taken out without a health questionnaire.

When choosing basic health insurance, the same rules apply to adults and children alike. You are free to choose any insurer and you can always switch at the end of the calendar year. It is well worth comparing basic insurance, as while all health insurance companies offer identical cover, the premiums can vary considerably.

2. Don't forget the risk of disability

If your child has a disability, medical costs can soon mount up. Statutory disability insurance only covers basic needs and does not apply until the age of 18. It might therefore make sense to take out disability insurance for your child. Start looking into the issue before the due date and make sure you check whether the product also covers the consequences of disability due to illness. Disability is much more frequently caused by illness than accident.

3. Minimize pension shortfalls

Switching to part-time employment may well give you more time and is often financially feasible nowadays – but beware: this has a direct impact on your pension. Part-time employment reduces your retirement savings and therefore the pension you later receive. With the Comparis pension calculator, you can work out whether you are at risk of a pension shortfall and how big this is likely to be.

However, it is possible to avert these losses. Purchasing additional occupational pension benefits is one option. You can claim the full amount on your tax return.

Another option is pillar 3a. This solution allows you not only to save for old age, but also to protect yourself financially in the event of disability and death.

If you or your partner stop working completely, the consequences will be even more severe. In the event of retirement, disability or death, only the first pillar pays benefits, such as a state (OASI) pension or disability pension. This is only mitigated if you have any vested benefits capital remaining in the second pillar (occupational pension) after you stopped working.

With regard to your future pension, it is definitely worth returning to work if possible. In this case, your existing vested benefits capital is transferred to the pension fund of the new employer. You then need to check your insurance situation and adjust it if necessary.

4. Clarify the financial situation with respect to maternity leave

Will you be employed at the time of birth? If so, your maternity leave will not affect your occupational pension. Instead of your salary, you will receive an income via the income replacement scheme (EO/APG) or in the form of a maternity allowance (MSE/AMat). You will also continue to be insured under the second pillar and will therefore be entitled to benefits from the workplace pension fund. Children are also covered by OASI, disability insurance and their parents' workplace pension fund.

If you are thinking of taking longer unpaid maternity leave, you'll need to take some steps to make sure you don't lose out. In the event of a longer period of unpaid leave or dismissal, you must notify your canton's social insurance office that you are not working, to ensure there is no gap in your OASI contributions. You should also ask your employer or its pension provider whether you can continue to stay with the pension fund during your unpaid leave. If you can, you will continue to be financially protected against the risks covered. Remember that if you do not receive income from an employer, you cannot make any contributions to pillar 3a.

For expert advice on how to maximize your retirement income, consult Optimatis, a partner service of Comparis (website in German only). The insurance specialists will take care of comparing and managing your insurance policies for you, provide free, independent advice, obtain quotes for you and explore ways to maximize your pension in accordance with your wishes.

5. Protect your family from unforeseen events

Once you become a family, the distribution of work changes. One of the two parents often switches to part-time work or gives up work entirely for the benefit of the family. Make sure you are protected in the event of the main earner's death or incapacity for work.

Pensions for married couples

In the case of married couples, the survivors – i.e. spouse and children – are covered in the event of the death of the main earner. Through OASI, surviving spouses receive a survivor's pension and children receive a disability or orphan's pension. They also receive benefits from the deceased's occupational pension in the form of a monthly pension or lump sum.

Pensions for unmarried couples

The situation is more complicated for unmarried couples. OASI only provides state pension benefits for surviving married partners. With regard to occupational pensions, it is up to the funds themselves whether to offer a pension or a lump-sum death benefit to the civil partner and any children the partners had together. You are therefore advised to ascertain your family's financial requirements sooner rather than later and determine how best to cover them should something happen to a partner. You should also bear in mind that changes to your personal circumstances often have financial consequences, such as a new need to finance childcare.

Pensions for single parents

Are you a single parent? You may find it an even greater challenge to save money for old age as well as be properly insured. You can give yourself more security by drawing up a detailed pension savings plan. In it, you can define the type and amount of investment you need to make. Such a plan also includes risks such as disability or death.

6. Pension advice for families

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.