Living in Switzerland

The Swiss Pillar Pension system in 30s

10th October 2019

The Author: Oliver Maher
Oliver is the Business Development Director at United Advisers. He looks after new clients to help them assess and review their immediate and long-term needs.

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.