Guide to Pension Provision in Switzerland

The Swiss pension system consists of:

The first pillar

State pension provision, mainly comprising:

• Old-Age and Survivors’ Insurance, known as the AVS in French and OASI in English
• Disability Insurance, known as the AI in French and DI in English
• supplementary benefits

Its purpose is to cover basic living needs.

The second pillar

Occupational pension provision, commonly referred to as:

• the LPP
• occupational pension
• pension fund provision

It supplements the first pillar and is intended to help maintain a reasonable standard of living after retirement.

The third pillar

Private pension provision, comprising:

• pillar 3a, which is restricted and tax-privileged
• pillar 3b, which is unrestricted

It allows individuals to supplement the first two pillars and pursue personal financial objectives.

The system was designed so that first and second-pillar benefits may, in certain circumstances, provide approximately 60% of previous income.

This percentage is a general objective, not an individual guarantee. The actual replacement rate varies considerably according to salary, employment history and the occupational pension plan.

A 35-year-old may regard retirement as a distant concern.

However, that person may need to rely on pension and social-security protection immediately if they:

• become disabled
• die and leave dependants
• substantially reduce their working hours
• leave employment
• become self-employed
• purchase a home
• divorce

The disability and death benefits provided by the first and second pillars may then be more important than the retirement capital already accumulated.

A complete pension review should therefore answer three separate questions:

What retirement income am I currently projected to receive?

What income would I receive if I became permanently unable to work?

What would my family receive if I died?

Pension provision is not merely planning for the future.

It also protects the present.

The first pillar is compulsory.

It is mainly financed through a pay-as-you-go system, under which contributions paid by the working population finance current benefits.

It includes:

• Old-Age and Survivors’ Insurance
• Disability Insurance
• supplementary benefits
• certain helplessness and care-related allowances

OASI is intended to cover basic living needs in old age or following the death of an insured person.

It is not intended to replace the insured person’s full final salary.

An OASI pension alone will therefore rarely maintain the previous standard of living of someone who earned an average or high income.

People who live or work in Switzerland are generally subject to OASI, subject to applicable international social-security agreements.

Employees pay contributions through their employer.

Self-employed people pay contributions directly to their compensation office.

People who are not in paid employment may also have to contribute, including:

• students
• homemakers
• people who retire early
• people living from investment income or assets
• non-working spouses

In 2026, the minimum annual OASI, DI and income-compensation contribution for a person who is not in paid employment is CHF 530.

The actual contribution may be significantly higher, depending on assets and pension income.

The non-working spouse

A married person who is not in paid employment may, under certain conditions, be considered to have met their contribution obligation if the working spouse pays at least twice the minimum contribution.

This position should be reviewed each year, particularly where the working spouse:

• stops working
• substantially reduces working hours
• retires early
• works abroad
• becomes self-employed

The amount of the OASI pension depends in particular on:

• the number of contribution years
• average determining income
• education and care credits
• marital status
• applicable pension-capping rules

A missing contribution year may permanently reduce the pension.

Contribution gaps may arise where someone:

• lived abroad
• studied without paying the required contributions
• stopped working without registering as a non-employed person
• retired early
• worked in several countries
• incorrectly assumed that they were automatically covered by their spouse

It is advisable to request an individual OASI account statement periodically.

The statement allows the insured person to check:

• recorded contribution years
• declared income
• possible gaps
• reporting errors by an employer

Corrections should ideally be requested promptly, while supporting evidence remains available.

The OASI pension depends on the contribution period and average determining income.

In 2026, the maximum full monthly pension is CHF 2,520.

The minimum full pension is half that amount.

For married couples, the total of the two individual pensions is generally capped at 150% of the maximum individual pension, subject to specific rules applying to certain benefits.

A person who has contributed in several countries may receive several partial pensions. Each country will generally calculate its own benefit under its domestic legislation and the relevant international agreements.

The thirteenth OASI pension payment

From 2026, an additional monthly pension payment is made each December to recipients of an OASI retirement pension.

The first payment will be made in December 2026.

The thirteenth payment applies to retirement pensions, but not to disability or survivors’ pensions.

It is not treated as income when calculating supplementary benefits.

The reference retirement age is 65 for men.

For women, it is being increased progressively:

• women born in 1961: 64 years and 3 months
• women born in 1962: 64 years and 6 months
• women born in 1963: 64 years and 9 months
• women born in 1964 or later: 65

From 2028, the reference retirement age will therefore be 65 for everyone.

Women born between 1961 and 1969 belong to the transitional generation and may qualify for specific compensation measures.

Depending on their circumstances, these measures may take the form of:

• a pension supplement
• more favourable reduction rates for early pension withdrawal

The OASI 21 reform introduced greater flexibility.

The pension may be:

• drawn early
• drawn partially
• deferred

Early withdrawal

The OASI pension can generally be drawn from age 63.

Women in the transitional generation may, under certain conditions, draw it from age 62.

Only part of the pension may be drawn early, in a proportion ranging from 20% to 80%.

Early withdrawal permanently reduces the pension.

Deferral

The pension may be deferred for at least one year and for a maximum of five years.

Deferral increases the future pension.

The current increase ranges from 5.2% to 31.5%, depending on the length of the deferral.

Partial retirement

A person may continue to work at a reduced level while drawing part of the OASI pension.

This flexibility makes it possible to organise a gradual transition from employment to retirement.

The decision should not, however, be based only on the immediate monthly amount.

The following should also be compared:

• the lifetime reduction or increase
• taxation
• other sources of income
• occupational pension benefits
• expected financial longevity
• liquidity needs
• ability and willingness to continue working

A person who continues working after the reference retirement age generally remains liable for OASI contributions.

An allowance of CHF 1,400 per month, equivalent to CHF 16,800 per year, may apply to each employment relationship.

The employee may waive this allowance and pay contributions on the full salary.

Contributions paid after the reference retirement age may, within certain limits, improve an existing pension or close certain contribution gaps, without exceeding the maximum pension.

A recalculation may be requested once.

Continuing to work after age 65 therefore no longer necessarily means paying contributions without any effect on the pension.

Disability Insurance prioritises rehabilitation.

It may provide:

• measures to maintain employment
• retraining
• education or vocational measures
• job placement
• assistive devices
• medical measures in certain circumstances
• daily allowances during rehabilitation

A pension is considered only where rehabilitation measures are insufficient or impossible.

To qualify for a disability pension, a person must generally have experienced an average incapacity for work of at least 40% for one year and have a lasting loss of earning capacity.

Why early notification matters

Early intervention improves the prospects of remaining in employment.

Disability Insurance should be contacted where incapacity continues or is likely to become long term.

Waiting several months may make rehabilitation more difficult and delay certain benefits.

Following a death, the first pillar may pay:

• a widow’s pension
• a widower’s pension
• an orphan’s pension

The qualifying conditions vary according to:

• marital status
• the presence of children
• age
• length of marriage
• the circumstances at the time of death

An unmarried partner is generally not entitled to an OASI widow’s or widower’s pension, even after a long period of cohabitation.

In 2026, the monthly ranges for full survivors’ pensions include:

• widow’s or widower’s pension: CHF 1,008 to CHF 2,016
• orphan’s pension: CHF 504 to CHF 1,008

The actual amount depends on the deceased person’s contribution history and determining income.

These benefits are important, but they do not necessarily maintain the family’s previous standard of living.

Supplementary benefits are available where recognised pension income and other resources are insufficient to cover recognised expenses.

They are a statutory entitlement where the legal conditions are satisfied.

They may supplement:

• an OASI pension
• a DI pension

The calculation takes account of factors including:

• income
• assets
• housing costs
• health insurance premiums
• recognised living needs
• family circumstances

Supplementary benefits are linked to residence in Switzerland and are generally not exportable following permanent departure abroad.

The second pillar is financed through a capital-funded system.

Each insured person accumulates retirement assets funded by:

• employee contributions
• employer contributions
• interest
• voluntary purchases
• transfers from previous pension funds

It covers three risks:

• old age
• disability
• death

The second pillar should not therefore be regarded as merely a retirement savings account.

It also contains important insurance benefits.

An employee is compulsorily insured if they meet the relevant age and salary conditions.

In 2026, the entry threshold remains CHF 22,680 in annual salary from the same employer.

Compulsory cover begins:

• from age 17 for death and disability risks
• from age 25 for retirement savings

The mandatory part of salary is insured only up to the statutory LPP ceiling.

A pension fund may, however, provide an enhanced plan covering:

• a higher salary
• a lower salary threshold
• a greater proportion of salary
• better risk benefits
• higher contribution rates

This is why two people with the same salary may have very different levels of protection.

Under the mandatory system, only part of salary is insured.

A coordination deduction is applied to take account of first-pillar cover.

In 2026, the statutory coordination deduction is CHF 26,460.

It can affect particularly:

• part-time employees
• people with several employers
• lower earners
• people who have reduced their employment percentage for family reasons

Some pension funds apply a coordination deduction that is:

• proportional to the employment percentage
• reduced
• removed
• adapted to salary

The treatment of part-time employment is therefore an important measure of the quality of a pension plan.

Reducing working hours may lower:

• current salary
• contributions
• retirement capital
• disability pensions
• death benefits

The pension certificate is one of an employee’s most important financial documents.

It generally states:

• insured salary
• accumulated retirement assets
• contributions
• vested benefits
• projected pension
• projected capital
• disability pension
• children’s pensions
• death benefits
• voluntary purchase capacity
• the amount available for home ownership

What should be checked?

Insured salary

Does it correspond correctly to the actual salary and employment percentage?

Mandatory and additional portions

A substantial proportion of the pension may depend on the pension fund regulations rather than statutory minimum rules.

Risk benefits

What income would be paid in the event of disability?

What would a spouse or partner receive?

Voluntary purchase capacity

The stated amount is a theoretical maximum. It does not mean that a purchase is always immediately appropriate or fully tax deductible in every situation.

Retirement projection

The projection depends on assumptions concerning:

• salary
• interest
• contributions
• conversion rate
• retirement age

It is not a binding promise.

At retirement, pension assets are converted into an annual pension using a conversion rate.

For the mandatory LPP portion, the statutory minimum conversion rate remains 6.8% in 2026.

Mandatory retirement assets of CHF 100,000 would therefore produce an annual pension of CHF 6,800.

This rate does not necessarily apply to the entire pension balance.

In many funds, a substantial part of the capital is additional or non-mandatory and may be converted at a different rate.

It is therefore necessary to distinguish between:

• the statutory minimum rate
• the fund’s overall regulatory rate
• the rate applied to mandatory assets
• the rate applied to additional assets

The actual pension may be significantly lower than a simple calculation using 6.8% of the entire balance.

At retirement, an insured person may request that at least one quarter of the mandatory LPP retirement assets be paid as a lump sum.

The pension fund regulations may allow a higher proportion, or even the full amount, to be taken as capital.

The choice between pension and capital should not be treated simply as an investment-return question.

A pension offers:

• regular income for life
• protection against longevity risk
• simple administration
• certain survivors’ benefits, depending on the regulations

A lump sum offers:

• greater flexibility
• the ability to invest
• the possibility of passing on the remaining capital
• the possibility of repaying debt
• direct control over withdrawals

Risks associated with taking capital

• poor investment returns
• excessive withdrawals
• living longer than expected
• emotional decision-making
• fees
• inflation
• absence of guaranteed lifelong income

Risks associated with taking a pension

• limited flexibility
• limited transfer to heirs
• dependence on the conversion rate
• loss of residual capital at death, subject to applicable survivors’ benefits

A mixed solution is often possible.

The deadline set by the pension fund for requesting a lump sum must be respected. It may be lengthy and varies between funds.

The second pillar permits flexible retirement.

Early retirement is legally possible from age 63, but pension fund regulations may permit retirement from age 58.

Early retirement generally reduces benefits because:

• contributions stop earlier
• the capital earns interest for a shorter period
• the pension must be paid for longer
• the conversion rate may be lower

Partial retirement may be organised in several stages.

The law generally permits up to three stages for drawing a pension or capital, while pension fund regulations may permit additional stages for pension payments.

Planning should coordinate:

• reduction in working hours
• salary
• OASI
• occupational pension
• lump-sum withdrawals
• pillar 3a
• taxation
• liquidity requirements

A person who continues working after the reference retirement age may defer pension fund benefits until employment ends, but no later than age 70.

The detailed arrangements depend on the pension fund regulations.

Deferral may allow:

• further contributions
• additional interest
• higher capital
• a higher pension

The following should nevertheless be considered:

• the future conversion rate
• taxation
• health
• income needs
• protection of the spouse
• concentration of wealth in the pension fund

Where an insured person becomes disabled, the pension fund may supplement Disability Insurance benefits.

Under the mandatory system, an LPP disability pension may be payable from a disability level of 40%.

A full pension is payable from a disability level of 70%.

Between these levels, the pension is calculated according to the disability level and statutory rules.

The mandatory pension is calculated using projected retirement assets, including:

• capital already accumulated
• theoretical future retirement credits, without interest

A disabled person’s child pension may also be paid, generally equal to 20% of the disability pension for each eligible child.

Additional pension plans may provide better benefits.

The pension fund may pay:

• a spouse’s pension
• a partner’s pension, depending on the regulations
• an orphan’s pension
• a death lump sum

Rules applying to unmarried partners vary considerably.

A pension fund may require:

• cohabitation for a specified period
• a joint child
• written nomination
• notification before death
• neither partner being married to another person

An unmarried partner should never be assumed to be automatically protected.

The following should be checked:

• the pension fund regulations
• beneficiary provisions
• the partner declaration form
• notification deadlines
• the benefits actually provided

Second-pillar survivors’ benefits supplement those provided by OASI.

When someone changes employer, their pension assets must generally be transferred to the new employer’s pension fund.

This is known as the vested benefit.

If the person does not immediately join a new pension fund, the assets must be transferred to:

• a vested-benefits account
• a vested-benefits insurance policy

They cannot be paid into an ordinary bank account.

Forgotten pension assets

Assets may remain with previous institutions where someone:

• changes employer frequently
• leaves Switzerland
• interrupts their career
• fails to provide details of the new pension fund

Forgotten assets can be traced through the Second Pillar Central Office.

When joining a new pension fund, all vested-benefits assets must generally be transferred to the new institution.

A vested-benefits account is generally a banking solution.

A vested-benefits policy is an insurance solution that may include guarantees.

Differences may concern:

• return
• fees
• investment risk
• death cover
• disability cover
• flexibility
• beneficiaries
• duration

Someone expecting to return to employment quickly may have different needs from someone leaving the labour market for a long period.

Vested-benefits assets remain subject to pension rules and cannot be withdrawn freely.

A voluntary purchase is an additional payment into the pension fund to close a regulatory gap.

A gap may result from:

• years without pension-fund membership
• a salary increase
• moving to Switzerland later in life
• divorce
• a change of pension plan
• an earlier reduction in working hours

The maximum amount is generally stated on the pension certificate.

Potential advantages

• higher retirement benefits
• potentially higher risk benefits, depending on the plan
• deduction from taxable income
• investment within the pension system

Points requiring attention

• financial quality of the pension fund
• interest credited
• conversion rate
• time remaining until retirement
• liquidity needs
• plans to purchase property
• possible departure from Switzerland
• future choice between pension and capital

Following a tax-deductible purchase, a lump-sum withdrawal within the next three years may result in the tax benefit being challenged.

Planning should therefore be coordinated with:

• retirement
• home ownership
• departure abroad
• capital withdrawal
• succession

A person moving from abroad may have substantial purchase capacity.

However, where someone has never previously belonged to a Swiss pension institution, purchases may be limited during the initial years under statutory rules.

Foreign pension assets, quasi-resident tax status and international tax treaties may also influence deductibility.

A substantial purchase after arriving in Switzerland should be reviewed with:

• the pension fund
• the tax authority where necessary
• an adviser familiar with international cases

The second pillar may be used to finance an owner-occupied primary residence.

Two options are available:

• early withdrawal
• pledging the pension assets

An early withdrawal may be used to:

• buy or build the primary residence
• repay a mortgage
• finance certain value-adding renovations
• acquire certain ownership interests

The minimum early withdrawal is generally CHF 20,000, although this limit does not apply in certain cases.

Consequences

A withdrawal reduces:

• retirement capital
• future pension income
• potentially disability and death benefits
• purchase capacity until the withdrawal is repaid

The capital is also taxed separately.

Pledging keeps the capital in the pension fund but increases the financial risk associated with the property.

Using pension assets for property means moving part of retirement security into the value of the home.

Following divorce, occupational pension assets accumulated during the marriage are generally divided under the applicable statutory rules.

The division may affect:

• retirement capital
• future pension income
• risk benefits
• voluntary purchase capacity

The person whose pension balance has been reduced will generally acquire new purchase capacity.

Divorce should also lead to a review of:

• beneficiaries
• survivors’ benefits
• pillar 3a
• life insurance
• housing needs
• retirement planning

The third pillar comprises:

Pillar 3a

Restricted private pension provision with tax advantages, subject to statutory withdrawal and beneficiary rules.

Pillar 3b

Unrestricted private provision, which may include:

• savings
• investments
• life insurance
• property
• other assets

Pillar 3b offers greater flexibility but does not benefit from the same general tax deduction as pillar 3a.

The third pillar should fill genuine gaps and should not be selected solely to obtain a tax deduction.

A person may contribute if they receive earned income subject to Swiss OASI contributions.

This may include:

• employees
• self-employed people
• cross-border commuters covered by the Swiss system
• recipients of unemployment daily allowances
• partially disabled people who remain in employment

Someone without earned income subject to OASI cannot generally contribute to pillar 3a.

Contributions may continue for up to five years after the reference retirement age where the person remains in paid employment.

In 2026, the maximum deductible amounts are:

Employee affiliated to an occupational pension fund

CHF 7,258 per year.

Person without a second pillar

20% of net earned income, up to CHF 36,288 per year.

The payment must be credited during the relevant tax year.

It is prudent not to wait until the final days of December, particularly where a bank transfer or new account opening is required.

From 2026, it is possible, under certain conditions, to make catch-up contributions for missing pillar 3a contributions arising from 2025 onwards.

The first possible catch-up payment in 2026 therefore relates to a gap from 2025.

Gaps may be filled for a maximum period of ten years.

An additional annual catch-up payment is limited to the small contribution amount, which is CHF 7,258 in 2026.

To make a catch-up contribution, the person must in particular:

• have received income subject to OASI in the year of the gap
• be entitled to contribute to pillar 3a in the catch-up year
• have paid the full ordinary contribution for the catch-up year

The catch-up payment is tax deductible.

This mechanism does not permit the recovery of any historical gap or of years during which the person was not entitled to contribute.

Pillar 3a bank account

It generally offers:

• simplicity
• low volatility
• clear valuation
• often limited returns

Pillar 3a investment solution

It may invest in:

• equities
• bonds
• property
• cash

It offers greater return potential, but also exposes the investor to market fluctuations.

It is more suitable where the investment horizon is sufficiently long.

Pillar 3a insurance policy

It may combine:

• savings
• death cover
• disability cover
• waiver of premiums

It may be appropriate where a genuine insurance need exists.

It often involves:

• a more rigid commitment
• exit costs
• a surrender value below total premiums during the initial years
• less flexibility

The choice should begin with the objective:

• saving
• investing
• protecting dependants
• obtaining a guarantee
• reducing tax

These objectives should not automatically be combined.

Pillar 3a capital can generally be withdrawn no earlier than five years before the reference retirement age.

Withdrawal may be deferred for up to five years after that age if the person continues working.

Early withdrawal is also possible in particular for:

• purchasing or building an owner-occupied home
• repaying a mortgage
• becoming self-employed
• changing self-employed activity
• leaving Switzerland permanently
• purchasing occupational pension benefits
• receiving a full DI pension where the relevant risk is not insured under the contract

The capital is taxed separately at a reduced rate, depending on the canton and individual circumstances.

Second-pillar and pillar 3a lump sums are generally taxed separately from ordinary income, but the applicable tax rate is progressive.

Withdrawing several amounts in the same year may therefore increase the effective tax rate.

It may be appropriate to stagger:

• several pillar 3a accounts
• partial retirement
• occupational pension capital
• vested-benefits accounts
• withdrawals by spouses

Tax rules vary between cantons.

Planning should begin several years before retirement because a single pillar 3a account cannot generally be divided freely at the point of withdrawal.

Pillar 3b consists of unrestricted private provision.

It may include:

• cash
• savings accounts
• investment portfolios
• unrestricted life insurance
• property
• ownership interests in a business
• other assets

It offers greater freedom regarding:

• withdrawals
• beneficiaries
• duration
• contribution amounts
• use

It does not benefit from the same general federal tax deduction as pillar 3a.

Its tax treatment depends on the product and canton.

Pillar 3b is particularly important for:

• people who have already maximised pillar 3a
• people who are not entitled to pillar 3a
• objectives arising before retirement age
• early retirement
• estate planning
• protecting an unmarried partner
• medium-term projects

Self-employed people are subject to OASI, but are generally not required to join an occupational pension fund for themselves.

They must therefore take a more active role in arranging:

• retirement provision
• disability protection
• death protection
• income protection
• accident cover
• protection of the family

They may:

• join an occupational pension institution voluntarily
• use the larger pillar 3a allowance if they have no second pillar
• build unrestricted private provision
• protect income through specific insurance

The absence of compulsory LPP contributions may improve short-term disposable income, but it can create a significant long-term shortfall.

Part-time employment can substantially weaken occupational pension provision.

The main reasons include:

• the entry threshold
• the coordination deduction
• several employers
• low insured salary
• interrupted saving
• reduced risk benefits

A person working for several employers may, depending on the circumstances and institutions involved, be able to request voluntary insurance based on combined income.

The following should be compared:

• salary from each employer
• pension funds
• entry thresholds
• accident cover
• risk benefits
• options for supplementary affiliation

Unmarried couples do not automatically receive the same protection as married couples.

Differences may concern:

• OASI survivors’ pensions
• occupational pension benefits
• inheritance
• inheritance tax
• pillar 3a
• ownership of the home
• life insurance

The following should be checked:

• partner declaration filed with the pension fund
• beneficiary clause
• will
• inheritance agreement
• cohabitation agreement
• financing of the home
• the surviving partner’s ability to retain the property

A long-term relationship does not replace the formalities required by certain pension fund regulations.

Permanent departure must be considered pillar by pillar.

OASI

Contributions already paid may give entitlement to a future pension or, in certain cases, a refund, depending on nationality and applicable international agreements.

Second pillar

When moving to an EU or EFTA state, the mandatory portion generally cannot be paid in cash if the person remains subject to compulsory old-age, disability and survivors’ insurance in the destination country.

It must remain in a vested-benefits solution.

The additional portion may generally be paid out.

Different rules apply when moving to a country outside the EU or EFTA.

Pillar 3a

Permanent departure from Switzerland is a permitted reason for early withdrawal.

The tax consequences depend in particular on:

• the canton in which the foundation is based
• the country of residence
• the applicable double-taxation agreement
• the timing of the withdrawal

A withdrawal should not be made merely because it is permitted.

The following should be considered:

• taxation
• currency
• retirement needs
• reinvestment
• family protection
• the possibility of returning to Switzerland

Expatriates must coordinate several systems.

They may hold:

• a foreign state pension
• a foreign occupational pension
• OASI rights
• LPP assets
• pillar 3a assets
• international insurance
• investments in several currencies

They need to understand:

• social-security agreements
• rights in each country
• taxation of withdrawals
• recognition of beneficiaries
• the effects of future departure
• transfer possibilities
• reporting obligations

Foreign pension assets cannot always be transferred into Switzerland.

An apparently simple consolidation may create a tax cost or loss of valuable guarantees.

A complete retirement plan should ideally begin several years before the intended retirement date.

It should establish:

Future income

• OASI
• occupational pension
• occupational pension capital
• pillar 3a
• unrestricted assets
• property income
• foreign pensions
• continued employment income

Future expenditure

• housing
• health insurance
• tax
• travel
• maintenance
• healthcare
• home support
• debt
• family support

Decisions

• retirement age
• pension or lump sum
• staggered withdrawals
• mortgage repayment
• relocation
• part-time employment
• succession
• protection of the spouse

The financial requirement in retirement does not automatically equal a fixed percentage of final salary.

It depends on the person’s actual intended lifestyle.

There is no universal figure.

The capital required depends on:

• annual expenditure
• guaranteed pension income
• expected length of retirement
• investment returns
• inflation
• taxation
• housing
• healthcare costs
• the desire to leave an estate

A simple method is:

• expected annual expenditure minus guaranteed annual income equals the annual amount that must be funded

It is then necessary to calculate the capital capable of funding that amount sustainably.

A retirement lasting thirty years requires a more robust approach than a calculation focused only on the first few years.

Assuming OASI will be sufficient

It covers basic needs, but rarely maintains the previous standard of living.

Never checking the OASI account

An old error may permanently reduce the pension.

Failing to read the pension certificate

Risk benefits are often discovered too late.

Focusing only on retirement capital

Disability or death may occur long before retirement.

Working part time without measuring the impact

A reduction affects insured salary and future benefits.

Making a pension-fund purchase solely to save tax

Liquidity, return and the planned form of withdrawal must also be considered.

Choosing a pillar 3a insurance policy solely for the deduction

Costs and contractual rigidity may be significant.

Waiting until retirement to choose between pension and capital

Notification deadlines and tax planning require advance preparation.

Forgetting vested-benefits assets

They should be traced and included in the plan.

Assuming an unmarried partner is automatically protected

Pension fund rules and required formalities must be checked.

Withdrawing the second pillar for property without measuring the pension reduction

The home then becomes part of the pension structure.

Ignoring the consequences of leaving Switzerland

Rules differ according to the destination country.

Step 1: gather the documents

• OASI individual account statement
• OASI pension estimate
• occupational pension certificate
• pension fund regulations
• vested-benefits statements
• pillar 3a contracts
• life insurance policies
• foreign pension statements
• mortgage documents
• household budget

Step 2: calculate the current position

• assets
• projected pensions
• disability benefits
• death benefits
• beneficiaries

Step 3: identify gaps

• retirement
• disability
• death
• spouse or partner
• children
• housing

Step 4: set priorities

• immediate risks
• retirement
• taxation
• flexibility
• estate planning

Step 5: choose appropriate tools

• emergency savings
• pension-fund purchases
• pillar 3a
• pillar 3b
• pure risk insurance
• investments
• debt repayment

Step 6: review regularly

After:

• salary changes
• marriage
• birth
• divorce
• change of employer
• reduction in working hours
• purchase of property
• departure from Switzerland
• approaching retirement

Each year, it is useful to review:

• OASI account
• contribution years
• insured salary
• occupational pension certificate
• employment percentage
• disability benefits
• death benefits
• beneficiaries
• vested-benefits assets
• purchase capacity
• pillar 3a contribution
• investment strategy
• mortgage
• retirement budget
• foreign pensions
• family circumstances
• possible departure
• taxation of future withdrawals

An annual review does not mean taking out a new product every year.

Its purpose is to confirm that the protection remains coherent.

Pension provision should not be reduced to a year-end tax transaction.

Contributing to pillar 3a may be useful.

Making a voluntary pension-fund purchase may be appropriate.

However, neither decision replaces a complete strategy.

We believe that sound pension provision should protect, in this order:

• the ability to maintain income
• the family in the event of death
• housing and fixed expenses
• retirement
• freedom to choose one’s future lifestyle

A person may have substantial retirement capital while remaining poorly protected against disability.

Another may have excellent disability and death benefits but insufficient retirement savings.

A third may have accumulated several pension assets without knowing where they are held or how they will be taxed.

The quality of pension provision is not measured by the number of contracts.

It is measured by coherence.

Key principles to remember

The Swiss pension system is based on three complementary pillars.

The first pillar is primarily intended to cover basic living needs.

The second pillar depends heavily on the pension fund regulations.

The third pillar can fill gaps and support personal objectives.

Pension provision covers retirement, disability and death.

Missing OASI contribution years may permanently reduce the pension.

Part-time employment may substantially weaken occupational pension benefits.

The 6.8% conversion rate applies only to the mandatory portion.

The choice between pension and capital should be prepared several years in advance.

Pension-fund purchases should be coordinated with future lump-sum withdrawals.

Pillar 3a catch-up contributions are possible from 2026 for certain gaps arising from 2025 onwards.

Unmarried partners must actively verify their protection.

Leaving Switzerland has different consequences for each pillar.

Tax should never be the only decision criterion.

Good pension planning first protects against risks that the individual or family could not absorb alone.

The Swiss pension system can appear complex because it combines several institutions, legal rules and time horizons.

It becomes easier to understand when viewed as a set of answers to four questions:

What income will I receive when I retire?

What income will I receive if I can no longer work?

What will my family receive if I die?

What proportion of my assets will remain accessible and transferable?

The three pillars provide part of the answer.

They do not automatically guarantee adequate protection.

The result depends on:

• employment history
• working hours
• the pension fund
• family circumstances
• saving capacity
• decisions made before needs become urgent

The appropriate method is to:

• verify existing rights
• identify gaps
• protect immediate risks
• organise savings
• prepare retirement choices
• preserve sufficient flexibility
• adapt the strategy regularly

Preparing for retirement is important.

Preserving financial independence before and during retirement is even more important.

This guide presents the general principles of pension provision in Switzerland.

Rights and benefits depend in particular on:

• contribution history
• income
• age
• marital status
• pension fund regulations
• canton
• taxation
• international circumstances

The figures and rules referred to reflect the position available in July 2026.

They may change.

Before making an important decision, such as a voluntary pension-fund purchase, early retirement, a lump-sum withdrawal, permanent departure from Switzerland, a property purchase or an insurance change, the current rules should be confirmed with the relevant institutions. Where appropriate, individual tax or legal advice should also be obtained.