Living in Switzerland

The Swiss Pillar Pension system in 30s

10th October 2019

The Author: Nygel Harriman

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Nygel is both client adviser and regional manager of our Geneva office. He loves the longer term relationships with clients working consistently to achieve their goals.

New to Switzerland? Wondering what the Swiss pillar pension system is all about?

We’ve got you covered.

Here is a simple 30-second explanation of the Swiss 3 pillar pension system

Pillar 1 is the mandatory state pensions. The Swiss Government is responsible for this and it is designed to take care of your most basic needs.

Pillar 2 is your compulsory occupational benefits insurance. This includes retirement pensions and capital. If you are employed this is the responsibility of your employer. It is your responsibility if you are self-employed.

Pillar 3 is for individually tailored, flexible private pensions.  These schemes are voluntary and designed to encourage further investment in retirement funds. There are, therefore, benefits attached to saving within this system. Pillar 3 pensions are more complex, they have two options; 3a and 3b.

Tied Pillar 3a pensions are long-term plans where capital is locked into a retirement plan. Flexible Pillar 3b pensions are plans that do not have a prescribed term, where the capital is available at any time.

In 3.5 seconds

Pillar 1 pensions are mandatory and Pillar 2 compulsory for employed persons.

Pillar 3 is where you get the chance to make lifestyle decisions about funding your time after retirement.

Have more pillar pension system questions?

We have a couple of options for you. You can download our Pillar 3 pensions guide or you can read our selection of pension blogs available on the website.