The 3-pillar concept – supporting your future

The aim of introducing mandatory occupational pensions (BVG/LPP) in 1985 was to ensure that together the pension benefits from BVG/LPP (pillar 2) and AHV/AVS (pillar 1) would amount to about 60% of the income you earned on entering retirement to allow you to maintain your accustomed standard of living. Experience has shown, however, that this percentage is often too low to really maintain your previous standard of living. Pillar 3 – i.e. the voluntary, private retirement plan – thus assumes greater importance in planning and securing your financial future.