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 still expect to receive only 60% of your final salary as pension income. With a private retirement pension or a payment plan, you can secure your income in retirement.
Lifelong or temporary retirement income
Guaranteed pensions or guaranteed minimum payments with an opportunity to earn returns
Retirement pension: reciprocal protection possible for two people
In which cases does additional retirement income make sense?
For mutual security
Supplement your joint retirement income
Arrange protection for your partner
Stay financially flexible with additional payouts
In the absence of a pension fund
Supplement your OASI pension with a retirement pension
Secure additional income
Gain financial flexibility
For pension planning
Bridge the gap when retiring early
Supplement your retirement income
Secure temporary additional income
What is additional retirement income?
Old-age benefits from the 1st pillar (OASI) and the 2nd pillar (pension fund) can only be partially influenced. With personalized add-ons to the 3rd pillar (private pension plan), you can secure your own additional retirement income in line with your budget. This is then available to you in the form of a guaranteed pension or as a time-limited minimum payout.
In principle, Helvetia offers you two different options for securing an additional retirement income: with lifetime or temporary payouts.
Helvetia retirement pension – a lifelong income
With the Helvetia retirement pension, you can secure a regular, guaranteed supplementary income from a freely selectable point in time. The retirement pension supplements your OASI and pension fund pensions. With insurance coverage you are always on the safe side.
Lifelong or temporary guaranteed additional income
Additional deposits possible to boost pension
Optional premium waiver in the event of incapacity to earn
Helvetia payment plan – additional income over time
With the Helvetia payment plan, you create financial freedom in line with your needs. With regular minimum payments you can supplement your pension or income, or you can bridge a gap caused by a career break or early retirement.
Security thanks to guaranteed minimum payments
Additional potential returns via an investment strategy of your choice
Your retirement income comprises several components of our social insurance system. It is an interplay of three pillars: state pension provision (OASI/DI), occupational pension provision and private pension provision.
In principle, you receive retirement benefits in the form of an OASI pension from the first pillar (OASI).
If you have paid into the second pillar, i.e. into your employer's pension fund, you will also receive a pension – unless you withdraw your pension assets as a lump sum.
If you have made private provision in the third pillar, you can use it to supplement your OASI and pension fund pensions individually.
What factors influence the amount of my retirement pension?
The key factor determining your OASI pension is the extent to which you have paid in your contributions without any gaps (eligible contribution years). The eligible average annual income is also important. OASI shortfalls usually arise through missing contribution years. You can also find further information in our guide to the 1st pillar.
With the pension fund, the amount of your old-age pension depends on whether you were always a member of a pension fund during your professional activity. Career breaks can result in gaps here as well. You can see your expected retirement benefits on the insurance certificate provided by your pension fund. The decisive element is always your pension fund’s regulations. You can also find further information in our guide to the 2nd pillar.
How high is the maximum retirement pension?
Only for OASI is there a fixed limit for the maximum retirement pension. It is difficult to calculate your OASI pension yourself. There are too many factors to take into account: the actual number of years of contributions, all the changes in your salary, changes in your marital status, children, etc. That is why your relevant OASI compensation office calculates your definitive OASI shortly before you retire.
However, it makes sense to request a statement of your individual account from your OASI compensation office every four to five years, especially if you change jobs frequently. The statement allows you to check the OASI contributions paid and to pinpoint, and compensate for, any missing years of contributions.
You can see your expected retirement pension on the insurance certificate which you receive each year from your pension fund. It also includes the amount available for a voluntary purchase. In this way you can improve the retirement benefits you will receive from your pension fund.
What amount should I choose for my private retirement pension?
It is best to answer this question in the context of your future provisions or pension planning. Our advisors will be pleased to assist you. Basically this is about determining the income sources available to you after retirement. These are usually OASI plus your pension fund and any private assets.
As a rule, you will stop receiving a considerable part of your income once you retire. With the benefits from OASI and your pension fund you will at best achieve around 60% of your previous income.
Now is a good time to consider the monthly budget that will cover your needs after retirement. Factor in a buffer to create some financial leeway. You can use the 3rd pillar to build up the difference between your budgeted expenses and any available retirement income.
How do I apply for a retirement pension?
You must submit an application for an OASI pension to the relevant OASI compensation fund office around three to four months before you retire. The compensation fund office then calculates the definitive pension amount, so that the first pension payment can be made on time.
The relevant regulations determine the retirement pension you receive from your pension fund. As a rule, the pension is paid out as of the time you retire. Contact your pension fund in good time. This will simplify the planning.
If you have taken out private retirement pension insurance, the pension will be paid out in line with your policy.
What are the tax benefits for retirement income?
Your retirement income is basically taxed in the same way as your previous income. However, there are some differences.
The OASI and pension fund pensions must be taxed as income. If you withdraw the pension assets as a lump sum instead of as a pension this must be taxed once at a separate, reduced rate.
Only 40% of a private pillar 3b retirement pension is taxed as income. If you accumulate a retirement pension in pillar 3a over the long term, you can deduct the annual contributions from your taxable income and thus save on taxes each year. However, the pensions are taxable as income.
What makes more sense – a retirement pension or a payment plan?
With a private retirement pension you are covered by an insurance solution. During the savings phase you can protect the savings process with a waiver of premiums. During the pension withdrawal phase, the amount of the pension payments is guaranteed, and the pension payments are made in this amount, usually for the rest of your life. This affords you long-term planning security for your retirement income. If you wish, you can also get insurance coverage for your partner.
With a payment plan you waive any insurance coverage. Instead, you participate in market trends with the money you have invested and can take advantage of profit opportunities. For your security and to improve planning, the amount of the minimum payments is guaranteed. However, additional income can increase these payments. You determine how long the payment phase should last.
You have to decide, based on your personal situation, which solution is best for you. A combination may make sense: a retirement pension for secure, life-long additional income and a payment plan for a temporary increase in income needs. This can be useful, for example, in the first phase after retirement. Or to bridge early retirement or a career break.
What taxes are levied on payouts?
Private retirement pensions as an insurance solution are basically taxed as income. Only 40% of a pension paid out of a flexible pillar 3b pension scheme is taxed as income.
However, the payment plan is not an insurance solution. This means that no stamp duty is due with a one-off investment. The payouts are tax-free up to the amount of your total investment. On the other hand, the income generated is subject to tax.
Are one-off payments possible with retirement income?
With OASI, missing contribution years can be offset with a one-off payment. This is only possible for the past five years, however.
Your pension fund may allow voluntary purchases. If so, you can make one-off payments to supplement your benefit scheme assets, thereby improving the pension you receive from your pension fund in the future.
Your private third-pillar retirement pension can also be increased with additional one-off payments – even if you already draw a pension.
Contact & advice. Make an appointment today.
A free consultation without obligation
A personal pension analysis and insurance proposal
Over the phone, in your home or at an agency close to you