Everyone living or working in Switzerland is covered by the old age, survivors’ and disability insurance schemes (OASI/DI). These pay benefits in the shape of retirement, disability or survivors’ pensions. If, on top of that, you are a member of a pension fund through your employer, you will enjoy additional retirement, disability and survivors’ benefits.
But even if you have always paid your OASI contributions in full and have always been insured in a pension fund through your employer, you can expect to receive only 60% of your final salary as pension income. That makes supplementary private provision via the third pillar so essential – especially for people who are not gainfully employed, only work part-time or have breaks in employment, but also for self-employed persons who do not belong to a pension fund.
The third pillar – private provision for retirement – supplements the benefits paid by the state pension schemes (OASI/IV) and occupational pension schemes (pension funds).
The third pillar enables you to voluntarily build up additional savings for your retirement, systematically supplementing your OASI and occupational pensions and enhancing your financial freedom in retirement.
You can also use the third pillar to supplement first- and second-pillar disability pensions in accordance with your particular needs, making it at least financially possible for you to live an independent life despite a disability. If you have financial obligations, such as a mortgage, you can also secure it via the third pillar. Then, if you were to die, your family would be protected financially and could remain in their own four walls.
|Who can pay in?|
|Anyone gainfully employed in Switzerland with income subject to OASI contributions (employees or the self-employed)||Anyone, irrespective of occupation and place of
|How long does the contract run?|
|Generally until you reach OASI retirement age||You are free to choose|
|What is the maximum savings contribution in 2023?|
|Gainfully employed, pension fund member: max. CHF 7,056
Gainfully employed, not a pension fund member: max. CHF 35,280, but no more than 20% of net earned income
|Tax advantages on making payments
|3a contributions are deductible from taxable income||Generally not deductible
|Taxation during the contract term (wealth tax)|
|None||Current surrender value
|Tax advantages on payout (income tax)|
|Capital payments are taxed separately from other income at a reduced rate
||Capital payments are tax-free in certain circumstances|
|Can the benefits be pledged?|
|Only to finance owner-occupied residential property||Possible|
|Are advance withdrawals possible?|
|Yes; at the earliest five years before reaching OASI retirement age||Possible|
|When is a surrender possible?|
|To purchase pension fund benefits
If you leave Switzerland for good
If you become self-employed
If you begin drawing a full DI pension
To purchase owner-occupied residential property
To pay off a mortgage
|Who can be beneficiary?
|The following order of succession must be observed:
1. Surviving spouse (mandatory)
2. Direct descendants (mandatory)
5. Other heirs
|Heirs are free to choose|
|Tax-privileged form of saving for retirement, with the option of indirect use to pay off residential property||Freely selectable, with tailored flexibility