COVER BASIC
NEEDS

Pillar 1

MAINTAIN
STANDARD OF
LIVING

Pillar 2

IMPROVE
STANDARD OF
LIVING

Pillar 3

COVER BASIC
NEEDS

Pillar 1

MAINTAIN
STANDARD OF
LIVING

Pillar 2

IMPROVE
STANDARD OF
LIVING

Pillar 3

The Swiss retirement system

We are fortunate to live in a country known to have one of the best retirement systems in the world. A successful retirement system is often associated with a scheme that offers its beneficiaries what is commonly referred to as “financial security”.

Financial security

Financial security is a central element which contributes to the stability of the family structure. Six fundamental needs can be associated with a family’s financial security:

  • – to have sufficient savings for the education of their children
  • – to have sufficient savings to achieve their future projects
  • – to have sufficient savings to potentially become the owner of the property in which they live
  • – to have sufficient savings to live a comfortable retirement
  • – to be prepared to cover the financial burden related to the loss of a spouse
  • – to be prepared to cover the financial burden related to loss of income due to an accident or illness

The Swiss retirement system is cleverly structured to cover all of the above needs; therefore enabling the family to build and maintain financial security.

This is achieved through a coordinated effort between three parties:

  • – The state
  • – The employer
  • – The individual

The three pillars

  • Each of the above parties is represented by a pillar, the system has therefore become known as the three pillar retirement scheme.
  • Each pillar is independent of the other, but offers cumulative benefits.
  • The first pillar is designed to cover our basic needs at retirement or in the event of loss of income.
    For a detailed overview of the first pillar click here
  • The second pillar is designed to maintain our standard of living at retirement or in the event of loss of income.
    For a detailed overview of the second pillar click here
  • The third pillar is designed to improve our standard of living at retirement or in the event of loss of loss of income.
    For a detailed overview of the third pillar click here

Your personal financial security

When one suffers loss of income due to illness or upon retirement, the accumulated benefits of the first and second pillars only provide between 50 to 65% of the last salary received.

The exact percentage depends on multiple factors :

  • – the number of years the person has been employed in Switzerland
  • – their salary
  • – if they have children
  • – if they are self-employed
  • – their marital status
  • – the rules and regulations of their pillar two pension fund
  • – the scope of the daily sickness benefit plan their employer has subscribed to
  • – etc

For those that are capable of living a “normal” life with a pension that is equivalent to 50 to 65% of their last salary, the third pillar will not be a priority. For the others it is of utmost importance.

It is highly recommended to analyze your personal situation at least once every ten years. Our specialists remain at your disposal for your personal assessment*, click below to make an appointment.

Request your personal financial security assessment

* The assessment is free and gives you an overview of your first, second and third pillar benefits in the event of retirement and loss of income in the event of illness or accident. It also gives you the amounts that are available if you wish to become a homeowner, start your own business or if you are going to leave Switzerland.

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