Retirement planning for beginners: what you need to know

Retirement planning means setting aside money today so that you can maintain your accustomed lifestyle when you retire. In Switzerland, planning is based on the three-pillar system, a proven model for financial security in old age.

The pension gap is the difference between the money you’ll need in retirement and what is covered by OASI and your pension fund. This gap can grow, especially if you work part-time, change jobs or spend time abroad. Online calculators can help you to calculate this accurately.

The sooner you start, the more time you have to build up capital – due to the compound interest effect, your money can grow more and more quickly over the years. If you use pillar 3a, you can also save up to around CHF 2,000 in taxes each year – enough for a vacation.

Part-time workers and the self-employed may also pay into pillar 3a. Pension payments may be suspended during stays abroad. Check what can be continued voluntarily or how to make additional payments.

Starting to save for your retirement early means a more relaxed life later on. The three-pillar system gives you stability: pillar 3a closes gaps and saves taxes, and small contributions today will provide big pay-offs for your future self.