Closing pension gaps

Why private pensions are so important

The state (AHV/AVS) and occupational (pension fund) retirement benefits are continuously decreasing due to social and economic developments. The consequence of this is that once you retire, your income is drastically reduced in one fell swoop.

At present, retirement benefits amount to approx. 60 per cent of your final income before you retire from gainful employment. However, experience shows that in fact, you need approx. 70-80 per cent of your final salary to maintain your standard of living. So if you don’t want to risk a financial shortfall, you need to build up a healthy private pension. The pension gap increases significantly for those with higher incomes (see chart) because, in relative terms, pillars one and two cover a smaller proportion of the required retirement funds.


Infographic: Pension gap


Insured person born in 1976, without contribution gaps

Gross annual salary CHF 85,000 (100%)
Maximum state pension (AHV/AVS) – Pillar 1 CHF 28,200
Basic mandatory occupational pension (BVG/LPP)* – Pillar 2 CHF 25,000
Annual pension from pillars 1 and 2 CHF 53,200 (63%)
Pension gap after retirement CHF 31,800 (37%)

* Basic mandatory occupational pension (BVG/LPP):

  • Maximum imputable salary: CHF 84,600
  • Coordination deduction: CHF 24,675
  • Maximum insured BVG/LPP salary: CHF 59,925

Interest rate of 1.25% and conversion rate of 6.8% (as at 01/2016), no private pension plan.


It is therefore crucial to consider the following questions:

  • Will I have an income shortfall after retirement?
  • Will I have an income shortfall in the event of early retirement?
  • Have I drawn up a budget for the transition from working life into the retirement phase (outline of income and expenditure)?
  • How much will I have to reduce my standard of living in retirement?
  • What additional funds will I need for my retirement?
  • How much more income will I need after my retirement?
  • How much money is required to safeguard my family if I die?
  • Is my family covered in the event of the breadwinner's death?
  • How much money do I get if I become unable to work due to illness or injury?
  • Am I adequately protected if I become unable to work due to illness or injury?


Why do I need a consultation?

Because there are many options for planning your retirement, the process can be confusing and it can be difficult to find the right investment solution.

The experts of our partners can review your pension arrangements and provide independent advice to help you find the ideal investment option for your retirement in Switzerland – a solution tailored to your needs and your personal and financial situation.

Request a free, no-obligation consultation

Closing pension gaps –

Will you receive the maximum state pension one day and, together with your occupational pension, have no gap in your retirement benefits? Plan ahead with