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Part-time work: impact on pensions

Cut back on work a little and have more time for your family or yourself: working part time sounds attractive. However, there are also disadvantages, as a lower workload translates into lower pension benefits.

Retirement Planning 12 May 2026

Authors

Elisabeth Beusch (CIO Economist) James Mazeau (CIO Economist)

As a general rule, pillars 1 (OASI/AHV) and 2 (pension fund) will cover about 60% of your final salary on retirement – provided you work full time throughout your career. A reduction in your workload can therefore lead to a pension gap that will affect your standard of living in retirement. To close this gap, you can take additional measures to save for your pension at an early stage.

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OASI (pillar 1)

Pillar 1 (OASI/AHV) is intended to ensure that you have a minimum income to cover your basic costs when you retire.

Pillar 1 insurance is compulsory for part-time workers, just as it is for full-time employees.
Everyone living or working in Switzerland pays OASI contributions.
As they pay lower contributions, part-time workers do not always receive the maximum pension of CHF 2,520 per month (figure for 2026).
The minimum OASI pension is CHF 1,260 per month. You need a full year of paid-in contributions to qualify.

Pension fund (pillar 2)

Pillar 2 supplements your OASI pension and is intended to enable you to maintain a comfortable standard of living even after retirement.

In principle, insurance in pillar 2 is also mandatory, but a minimum income of CHF 22,680 (figure for 2026) is required for your employer to provide compulsory insurance.
If you earn less, you are not automatically insured unless your employer voluntarily also insures lower salaries.
Mandatory insurance requires employment that lasts longer than three months.
Pension fund benefits are designed to supplement the OASI pension, but part-time workers must decide for themselves whether this is sufficient to ensure financial security in retirement.
Self-employed persons may be able to take out voluntary insurance with the pension fund of their professional association or join the Substitute Occupational Benefit Institution.

Definition of the coordination offset

The “coordination offset” is an important factor that influences how pension fund contributions are calculated. It is determined by the Federal Council and amounts to CHF 26,460 (figure for 2026). Its function is to “coordinate” the contribution obligations of pillars 1 and 2.

This means that pension fund contributions are only paid for the portion of the salary that is not already insured under OASI. To achieve this, the coordination offset is subtracted from the gross annual salary. What remains is the “coordinated salary” that pension fund contributions are paid on. However, there are a few things that you should bear in mind.

Full time vs. part time

Multiple part-time jobs

Particular caution is needed if you work multiple part-time jobs. For example, if you earn enough in two part-time jobs to be included in the pension fund, the coordination offset will be applied to both salaries. The salary you pay pension fund contributions on will be lower as a result.

If you do not cross the entry threshold in any of your part-time jobs, but your total income is higher, you can be accepted in a pension fund. Ideally, you should process all part-time income through the pension fund of a single employer and ask the pension funds of your other employers to transfer their contributions to the same fund. In this case, only one coordination offset will be applied.

Annual salary too low

The coordination offset has a greater impact on part-time work.

As a part-time employee, you can take the following steps to pay sufficient pension contributions to ensure a financially secure retirement.

Increase your workload

Avoid contribution gaps

If you do not have enough OASI contribution years, you can make up for missing contributions in the five years that follow. To do this, you should request an individual account statement from the compensation office. You must pay at least the minimum contribution for all of the contribution years (2026: CHF 530).

You can also reduce an existing contribution gap in the pension fund. This can be done by means of a voluntary buy-in. However, the amount you can purchase is limited and depends on your currently insured salary – which is lower if you work part time. Again, you can find out what is possible for you at most pension funds by checking your pension fund statement. You can deduct these purchases from taxable income, provided you do not receive any benefits in the form of capital within the three years immediately following the purchase.

Save for retirement in pillar 3

Whether you are employed or self-employed: as a part-time worker, you can take advantage of the opportunities offered by pillar 3a for voluntary retirement savings. Pillar 3a allows you to make targeted investments in your retirement provision – you can deduct any contributions paid in from your taxable income in the same year.

Pillar 3 complements pillars 1 and 2 and offers you the opportunity to make tax-privileged savings for the future. If you are affiliated to a pension fund, you can pay up to CHF 7,258 per year (figure for 2026) into pillar 3a. There is flexibility within this limit – monthly standing orders are also possible.

Part-time employees without a pension fund may pay in up to 20% of their net income, up to a maximum of CHF 35,280 per year. In 2026, it will be possible to make retroactive payments into pillar 3a for the first time, offering you additional flexibility.

You can decide for yourself each year whether you want to pay in the maximum amount. A monthly standing order of as little as CHF 100 would already get you off to a good start.

How much does working part time reduce your pension benefits by?

Our study indicates the various factors that reduce your pension benefits when working part time. We illustrate the reductions in detail with specific examples.

Read now (in German)

Less pay also means lower pension benefits. Pillars 1 and 2 usually cover around 60% of your final salary when you retire. If this is not enough to maintain your standard of living, it is crucial to invest in your pension at an early stage. If your financial situation allows it, even small payments into pillar 3a can help if they are made regularly over a long period.

The sooner you start financial and pension planning, the more you can enjoy your retirement. Whether through OASI, the pension fund or private retirement planning – there are many ways to close pension gaps and secure your financial future.

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Part-time work: impact on pensions

Contents:

How does part-time work affect your pension?

Take your pension into your own hands

OASI and pension fund insurance

Definition of the coordination offset

How can I prevent pension gaps?

How much does working part time reduce your pension benefits by?

Conclusion: save the smart way today, enjoy retirement tomorrow

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