Retirement

The three pillars concept

Pillar 1 is designed to provide a basic level of subsistence

The state pension (AHV) is designed to secure a basic standard of living and provide insurance coverage for surviving dependants. Coverage is mandatory for individuals who are permanently resident, in salaried employment, or selfemployed in Switzerland.

Pillar 2 is designed to secure your current standard of living

Pillar 2 is the statutory occupational pension plan arranged through pension funds. The combined pension payable under the state and occupational plans is intended to provide at least 60% of the final salary, and is aimed at enabling individuals to maintain their accustomed standard of living in retirement.

Pillar 3 makes up for any pension gap

The population structure in Switzerland has changed significantly in the last 50 years. While life expectancy has increased, birth rates are falling. The result: there will be fewer workers in the future to shoulder the cost of growing numbers of pensioners.

Even the maximum pensions under the pillar 1 and 2 plansoften prove insufficient on retirement, making it more difficult for individuals to maintain their current standard of living.

Anyone wishing to enjoy a retirement free of financialworries therefore needs to take prompt action. Pillar 3 offers you a range of options for closing your pension gap and maintaining your accustomed standard of living using pillars 3a (restricted pension plan) and 3b (unrestricted)