Friday, May 31, 2013

What is the Swiss 3-pillar system?

The Swiss pension system is divided into state pensions, occupational benefits insurance and private pensions. Upon retirement or in the event of disability or death, the financial security of every person and their relatives rests on these three Pillars.
  • the 1st pillar is obligatory for everyone and includes Old Age and Survivors' Insurance OASI, Disability Insurance DI, Ordinance on Compensation for Loss of Income and health insurance.
  • the 2nd pillar is obligatory for those in employment and includes occupational pension funds, accident insurance and unemployment insurance.
  • the 3d pillar is voluntary and includes qualified savings plans, free savings plans and private health insurance.


The Private pension – 3rd pillar allows you to save for your retirement in addition to what the 1st and 2nd pillars offer you. A distinction is drawn between tied pension provision and flexible pension provision. What is particularly attractive about the tied provision pillar is that it makes it possible to save tax. By contrast, the flexible pillar generally does not offer any tax privileges, but it does give you greater flexibility.


1 comment:

Gowri said...

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