Are you a woman working part-time? Take control of your financial future now.

Two women look at a document

Are you a woman working part-time? Take control of your financial future now.

In Switzerland, three out of five women currently work part-time and have found a model that fits their lives well. Does this apply to you, too? Conversely, the Swiss system for retirement provision (three-pillar system) is designed with people in mind who work until retirement without interruption and earn a full-time income.

Many women have an inkling that they should look into their retirement planning. However, they are reluctant to do so – or rely entirely on their partner and their partner's income. But what would happen if this income were no longer available, for example because of unemployment or separation? 

Take responsibility for your financial future now. This is especially important for part-time workers. Here are three tips: 

  • Ask what retirement planning options your company offers.
    Your entire salary is not normally insured by the pension fund; usually a sum referred to as the coordination deduction is deducted from your gross salary. Currently, this is up to CHF 25,095. Your pension fund contributions are only calculated on the basis of the remaining salary. Ask how this is regulated in your company: The smaller the coordination deduction, the higher the insured salary and the more you can save for retirement. Your pension fund may also offer you additional retirement provision options, such as an extended savings plan. Or you may have the option to pay an additional sum of money into the pension fund. This is referred to as a voluntary contribution. This is also worthwhile from a tax perspective.

Sample calculation for part-time employees: This is how much money you lose in the pension fund

Let's assume you've been working part-time at 60% of full-time hours since you were 35 and your income corresponds to the average in the canton of Zurich. Your company also applies the full coordination deduction to part-time employees. Therefore, when you retire, your pension will be reduced not only by 40%, but by as much as 50%. But there is no need to panic: You can make up for this gap with just CHF 10 a day.

  • Take the opportunity to save privately for your old age.
    As a part-time employee, you will logically earn less than you would if you worked full-time. This means that you will also have to expect less money after retiring. It is therefore all the more important that you save privately for your old age: Via the 3third pillar, you can save for your retirement and at the same time benefit from lower taxes. Currently, you can deduct a savings amount of up to CHF 7,056 directly from your taxable income. Does that exceed your budget? You can make a big difference even with a smaller contribution. Incidentally, there are various options: With an insurance solution, you can also protect yourself and your family against strokes of fate such as a serious illness or death. 
  • Get advice and make sure that your wishes come true.
    Does all this seem rather complicated to you? Don't worry – our pension specialists will be happy to help you find your way through the information jungle. Our customer advisors will show you what benefits you can expect from the OASI (old-age and survivors' insurance) and pension fund after retiring or in the event of a long-term illness. They will also suggest how you can optimally shape your financial future and thus make your wishes and dreams come true.

By the way, retirement provision is not something you deal with just once and can then forget for the next 30 years. As soon as your life changes – for example, as a result of professional development, marriage, birth, building a house or divorce – it is worth analyzing the situation again and adjusting the solutions if necessary. We will be happy to accompany you on this journey.

Coordination deduction: What is it?

In the Swiss three-pillar system, the pillars are coordinated: Anyone who works from the age of 20 until regular retirement and earns an average of at least around CHF 85,000 will receive the maximum OASI pension of currently CHF 28,680 from the first pillar after retirement. A large part of this is deducted from the gross salary in the occupational pension plan (second pillar) (coordination deduction). This is because this part is already paid out as a pension via the OASI. If this full coordination deduction is made for part-time employees, their pension will decrease more than their workload.

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