Provide for the future

The Swiss retirement provision system is based on three pillars:

• state retirement provision (1st pillar)
• occupational retirement provision (2nd pillar) 
• private retirement provision (3rd pillar)

The aim of the Swiss retirement provision system is to provide the country's population with a reliable income for all life situations. For example, after retirement, in the event of the death of a partner or in the event of permanent disability due to illness or accident. 

1st pillar – state retirement provision

The 1st pillar is about ensuring subsistence. This pension is intended to cover the minimum necessary living requirements. The 1st pillar consists of old-age and survivors' insurance (OASI), disability insurance (DI) and the income compensation scheme (EO).

2nd pillar – occupational retirement provision

The 2nd pillar ensures your accustomed standard of living. For occupational retirement provision, employees and employers pay at least the same amount into a pension fund. The employer can also volunteer to pay more.

3rd pillar – private retirement provision

The assets in the 3rd pillar serve to close any pension gaps from the 1st and 2nd pillars. It also allows you to retire earlier or fulfill dreams and wishes after retirement.

Find out more at vita.ch

The biggest differences between a pillar 3a solution from a bank or an insurance company relate to the risk protection for you and your family, your savings goal and the period of insurance.

Risk protection for families and savings goal
With an insurance company, you take out an insurance contract under pillar 3a. This includes insurance coverage in the event of disability and/or death. This means that if you become disabled, your insurance will pay the annual amount due into pillar 3a for you. You will therefore continue to save for retirement, even if you can no longer work. Depending on the retirement provision solution you choose, you will also be paid a disability pension until retirement. In any case, you will meet your defined savings target. In the event of death, a lump-sum death benefit will be paid to your surviving dependents. This means that your loved ones will at least be protected from the financial consequences of this misfortune. You pay for this insurance coverage with a portion of your premium.

When you open your pillar 3a with a bank, the main focus is on the savings process. You and/or your family will not be protected against the financial consequences of disability or death. If you can no longer pursue your work, you will no longer be permitted to pay into pillar 3a. In this case, you will not reach your defined savings goal. 

Period of insurance
Insurance contracts under pillar 3a always have a fixed period of insurance. This usually extends until the normal retirement age. You undertake to pay a certain amount into the pillar 3a policy on a regular basis. 

After the third insurance year, however, you have the option of pausing payments for up to three years. Insurance coverage does not expire in this case. This means that you will continue to be fully insured if, for example, you go on parental leave or spend time abroad. The only consequence is that your savings target will be reduced by the amount of the paused payments.

The time to start paying OASI contributions depends on whether or not you are gainfully employed.

• As a gainfully employed person: You start paying OASI contributions the year you turn 18.
• As a non-gainfully employed person: You start paying contributions no later than the year you turn 21. It does not matter whether you receive an income or not. 

Are you studying and not in paid employment? In that case, you should pay the minimum amount of CHF 503 to your OASI compensation office in 2022. Otherwise, you will be missing contribution years. This may result in your OASI pension being reduced upon retirement.

If you do not pay in the minimum contribution, your OASI pension will be smaller upon retirement. To avoid pension reductions, women need to demonstrate 43 years of contributions and men need 44. You have the option to make up for any missed contribution years within five years. After that, this option expires.

In Switzerland, anyone with earnings from gainful employment subject to OASI contributions can pay into pillar 3a. Therefore, this includes gainfully employed students and apprentices. The amount they can pay in depends on whether they are affiliated with a pension fund. If they are, they can pay in a maximum of CHF 6,883 in 2022. Gainfully employed students and apprentices who are not affiliated with a pension fund may pay in a maximum of 20% of their net earnings from gainful employment. They may deduct the amount paid from their taxable income when filing their tax return.

Students without earnings from gainful employment subject to OASI contributions cannot pay into pillar 3a.

Especially when you are young, securing your salary is important. After all, you haven't been working for very long. Imagine having to make do with 60 percent of your current salary for the rest of your life. Protect yourself with disability insurance.

Build up additional capital for the future with unit-linked life insurance. Since the investment horizon is very long, we recommend choosing an investment with a high equity ratio.

Only if you earn more than CHF 21,510 per year. This is the entry threshold to be included in the pension fund. Of course, pension funds can also offer more advantageous solutions to provide you with insurance at a lower income.

Yes, it does affect your occupational retirement provision (pension fund). However, in most cases, missing contributions can be minimized with higher wages. In addition, you can still make pension fund purchases at a later date.

If you are studying, paying the minimum OASI contribution each year is important. In 2022, this will be CHF 503. These minimum contributions will also be minimized later by your higher wages.

Even while studying abroad, you should pay the minimum OASI contributions and take out additional insurance against long-term disability. Preexisting disability insurance can also be continued when you're abroad.

The Swiss retirement provision system is based on three pillars:

• state retirement provision (1st pillar)
• occupational retirement provision (2nd pillar) 
• private retirement provision (3rd pillar)

The aim of the Swiss retirement provision system is to provide the country's population with a reliable income for all life situations. For example, after retirement, in the event of the death of a partner or in the event of permanent disability due to illness or accident. 

1st pillar – state retirement provision

The 1st pillar is about ensuring subsistence. This pension is intended to cover the minimum necessary living requirements. The 1st pillar consists of old-age and survivors' insurance (OASI), disability insurance (DI) and the income compensation scheme (EO).

2nd pillar – occupational retirement provision

The 2nd pillar ensures your accustomed standard of living. For occupational retirement provision, employees and employers pay at least the same amount into a pension fund. The employer can also volunteer to pay more.

3rd pillar – private retirement provision

The assets in the 3rd pillar serve to close any pension gaps from the 1st and 2nd pillars. It also allows you to retire earlier or fulfill dreams and wishes after retirement.

Find out more at vita.ch

The biggest differences between a pillar 3a solution from a bank or an insurance company relate to the risk protection for you and your family, your savings goal and the period of insurance.

Risk protection for families and savings goal
With an insurance company, you take out an insurance contract under pillar 3a. This includes insurance coverage in the event of disability and/or death. This means that if you become disabled, your insurance will pay the annual amount due into pillar 3a for you. You will therefore continue to save for retirement, even if you can no longer work. Depending on the retirement provision solution you choose, you will also be paid a disability pension until retirement. In any case, you will meet your defined savings target. In the event of death, a lump-sum death benefit will be paid to your surviving dependents. This means that your loved ones will at least be protected from the financial consequences of this misfortune. You pay for this insurance coverage with a portion of your premium.

When you open your pillar 3a with a bank, the main focus is on the savings process. You and/or your family will not be protected against the financial consequences of disability or death. If you can no longer pursue your work, you will no longer be permitted to pay into pillar 3a. In this case, you will not reach your defined savings goal. 

Period of insurance
Insurance contracts under pillar 3a always have a fixed period of insurance. This usually extends until the normal retirement age. You undertake to pay a certain amount into the pillar 3a policy on a regular basis. 

After the third insurance year, however, you have the option of pausing payments for up to three years. Insurance coverage does not expire in this case. This means that you will continue to be fully insured if, for example, you go on parental leave or spend time abroad. The only consequence is that your savings target will be reduced by the amount of the paused payments.

Yes, provided you are affiliated with a pension fund. Otherwise, you can pay a maximum of 20 percent of your net salary into pillar 3a.

With a part-time workload, the employer and the employee pay less into old-age and survivors' insurance (OASI) and the pension fund. As a result, pensions will be smaller later on.

Yes, it does. If you leave your job, for example, you will cease to be eligible for risk benefits for death and disability in the 2nd pillar. Your retirement assets will be transferred to a vested benefits account. To ensure that there are no gaps in contributions to old-age and survivors' insurance (OASI), you should register with the OASI compensation office and pay the minimum contribution each year, unless you are married and the minimum contribution is paid via your spouse.

Request advice

It is best to contact your advisor to close any gaps with an individual solution.

Yes, it does. Depending on whether you are a single parent or married, the situation is different.

Single, non-working mothers.
As a single, non-working mother, you are classified as a non-working person. To avoid a gap, you should register with your compensation office and pay the minimum contribution. This applies if you are absent from work for one year or more. You will no longer be insured under the 2nd pillar. Your existing savings balance will be transferred to a vested benefits account. 

Married, non-working mothers
For OASI, the minimum contribution is paid via your spouse. However, you will no longer be insured under the 2nd pillar. Your existing savings balance will be transferred to a vested benefits account.

Request advice

It is best to contact your advisor to close any gaps with an individual solution.

First, you should make maximum use of pillar 3a. This is because the deductible contributions do not add up, but expire at the end of the year. On the other hand, possible pension fund purchases do not expire. You can also close any existing gaps in the pension fund in the following year. 

Note that pension fund purchases three years before retirement have an impact on how you will be permitted to withdraw your pension fund assets. Specifically, in this case, you will be required to withdraw your balance as a pension. In the event of a lump-sum withdrawal, the tax saved on the purchase is reclaimed.

Our advisors will answer your personal questions in a personal meeting. They will address your individual retirement provision situation and explain whether you have any gaps. At the end of the meeting, you will know how to close these gaps. And you will also know what you can do to ensure that you have enough money for a relaxed retirement in old age.

Death and disability insurance provides good protection. With this life insurance, you protect your family against the financial risks that arise if you become or remain disabled or in the event of your death. Find out more about the products Disability Insurance and Protection for loved ones.

It is never too early to start planning for your retirement. What the money will be used to finance, depends on your wishes and plans. Would you like to retire early? Travel the world after you retire? Or are you saving for your children's education? As a rule, we recommend you start thinking about your retirement around the age of 50.

If you withdraw your pension fund as an annuity, you will receive a steady income for the rest of your life. If you choose a lump sum payment, you will receive your entire pension funds in one installment. Whether a lifetime annuity, a lump sum payment or a combination of the two is more suited to your situation, depends on a variety of factors: your requirements for security, your financial flexibility, your dreams and plans after your retirement. 

As a rule, the old age and survivors’ pension (OASI) and the money from your 2nd pillar pension fund are paid out as a lifetime annuity. However, these are often not sufficient to preserve the standard of living to which you are accustomed. The money from the first two pillars is often less than your previous income. Irrespective of the resources at your disposal following retirement, this gap can be minimized or closed. For example, with a lifelong, private pension or with a payment plan. Get advice from our specialists. We analyze your personal situation and show you the various options available to you.

A financial or retirement plan is a life plan. Up to age 58, building up your assets is the key focus. After your 58th birthday, the focus shifts to planning the third phase of your life. 

To help with your financial and pension planning, our specialists can work out a concept that suits you using your needs and goals. In doing so, we will take into account your current living situation and the benefits from all three pillars. We will identify gaps in your coverage and show you how to minimize or fill these. Since your personal circumstances can change with time, just like your plans and wishes, you should regularly go over your plan and make changes if necessary. 

A financial and retirement plan gives you clarity. You are building the foundations on which you can make the right financial decisions.

There are four forms of retirement:

• Regular retirement: The regular retirement age for women is 64, for men it is 65. 
• Early retirement: Early retirement describes the situation in which you stop work before the regular retirement age. Early retirement is possible from 58 onwards — depending on where you live and which pension fund you belong to.
• Semi-retirement: Semi-retirement is a more gradual retirement spread over multiple steps. The interval between the steps is at least a year. This requirement also varies depending on your place of residence and pension fund.
• Deferred retirement: Deferred retirement refers to retirement after you have already reached the regular age of retirement. Women can defer their retirement until their 69th birthday. Men can defer their retirement until their 70th birthday. This can vary depending on your pension fund. 

To find out which type of retirement is best for you, please contact your customer consultant. We at Zurich will be happy to answer your questions.

The answer to this question differs from person to person. As such, there is no general answer to this question. The decisive factor here is the individual requirements of each pensioner. 

The biggest expenses are:

• Living and household expenses
• Costs for illness and accident insurance including deductibles
• Mobility and leisure expenses
• Insurance
• Taxes

You should compare these expense with your expected pension income and other assets. For more detailed information, please contact your customer consultant.

This question must be answered on an individual basis. In the medium term, costs for mobility and leisure will decrease. However,  individual health and care costs can increase. You may incur extraordinary costs right after retirement, such as for home renovations, travel, etc.

To answer these questions, it is sensible to make a model calculation based on your future outgoings and income. This involves comparing your individual pension fund and OASI income with your personal outgoings. In addition, there is the question of whether it is sensible to withdraw a specific amount form the pension fund as a lump sum. 

For more detailed information, please contact your customer consultant.

Women are eligible to receive their OASI payments from their 64th birthday, men from their 65th birthday. To ensure that you receive the funds in your bank account, you must register in good time at the compensation office at which you most recently paid in pension contributions.