3-pillar principle Swiss pension system at a glance

Swiss retirement planning is based on the three-pillar principle and ensures financial protection in old age. Pillar 1 consists of old age and survivors' insurance (AHV) and disability insurance (IV), which are obligatory and ensure a minimum standard of living. Pillar 2 is designed to allow you to maintain the standard of living to which you have become accustomed after retirement, and is also obligatory. The Pillar 3 private pension provision is voluntary and aims to enable you to fulfill other ambitions when you reach retirement age.

Three-pillar principle – ensuring financial security in old age

Pillar 1 provides a basic level of subsistence
The state pension, which consists of old age and survivors' insurance (AHV), disability insurance (IV) and supplementary benefits, secures your basic living costs. IV covers you in the event of disability, while AHV covers your dependents in the event of your death. Pillar 1 is obligatory for all those who live or work in Switzerland.

Pillar 2 ensures an adequate standard of living
According to BVG, occupational pensions are the responsibility of pension funds. They are obligatory for all employees with an income of CHF 21,150 or more (as at 2015).
Together with Pillar 1, it should provide you with around 60 to 70 per cent of your final salary and enable you to maintain your previous standard of living. Self-employed individuals can voluntarily participate in Pillar 2.

Pillar 3 makes up for any income shortfall
The private pension provision closes the gaps in provision that occur despite making optimum use of pensions from Pillars 1 and 2. Think about building up your Pillar 3 pension as soon as possible so you can enjoy your retirement without any financial worries.

We will be happy to assist you with your decision and provide you with retirement provision solutions tailored to your specific situation.