Swiss Local Pensions

In Switzerland, retirement pensions are based on a 3 Pillar concept with each Pillar providing a different level of benefit.

Pillar 1
This is the state pension and is mandatory and covers the basic old age pension, disability benefit and unemployment benefits.  It is very basic.

Pillar 2
Occupational pension plans which are mandatory for all employees and for the self-employed if they wish to join.  The pension is designed to maintain an average living standard.

Pillar 3
Private pension provision for long term savings which is split into 2 options 3a & 3b:

3a-contributions are tax deductible up to a maximum of 6,768 francs but an individual cannot access the pension.

3b- unrestricted contributions are allowed and capital is available anytime.