The Three-Pillar System in Switzerland

Funded by a distribution system, the first pillar provides vital minimum cover for retirement, disability and death. It is still insurance, but state-run, and consists of: AHV: Old Age and Survivors Insurance IV: Disability Insurance IC: Compensation for loss of earnings due to illness The ordinary retirement age is set at 64 for women and 65 for men.

Unlike the first pillar, the second pillar is based on a capitalisation system, so everyone saves for themselves. Upon retirement, the insured can choose between receiving an annuity for life, withdrawal of the accumulated capital, or a mix of both.

The third pillar, which can be taken out as pillar 3a or pillar 3b, is the means of supplementing the first two pillars, and is essential for achieving the same standard of living as before retirement. Moreover, pillar 3a is tax deductible, with limits that change over time, and thus brings us a not inconsiderable tax advantage. Within the third pillar, in addition to accumulating capital for retirement, we can include benefits in the event of disability and death, thus protecting you and your family. In this way, you will be sure to reach your goal, always and in any case.

With a pension analysis, we will show you, with simple graphs, how much each pillar covers in the event of retirement, disability and death. In this way, you can sleep safely in the knowledge that you are well covered.