Understanding the Swiss Three-Pillar Pension System: What Every Expat Needs to Know for a Secure Retirement

Switzerland’s pension system is praised for its reliability and structure—but for expats, it can feel confusing and opaque. If you’re planning to stay long-term or retire here, understanding the Swiss three-pillar system is essential for making the most of your time and income.

Here’s a simple breakdown:

Pillar 1 – State Pension (AHV/AVS)

This is the basic pension, mandatory for all residents. Funded through payroll contributions, it covers essential living expenses in retirement. However, for many expats, contributions may be limited due to time spent abroad—meaning benefits might not be enough to live on.

Pillar 2 – Occupational Pension (BVG/LPP)

This is mandatory for salaried employees earning over CHF 22,050/year and is co-funded by your employer. But frequent job changes, self-employment, or part-time work can leave you with gaps in your coverage—gaps that could reduce your future pension.

Pillar 3 – Private Pension (Pillar 3a and 3b)

This is where you take control. Contributions are voluntary, but they offer excellent tax advantages. Whether you’re employed or self-employed, Pillar 3 lets you build additional retirement savings—and plan for your financial future strategically.

How I Can Help You

As a financial planner specialising in expats in Switzerland, I can help you:

• Evaluate your current pension situation

  
  

• Identify gaps and opportunities in your Pillar 2 and 3 planning

  
  

• Create a tailor-made retirement strategy

  
  

• Optimise your tax savings

  
  

• Stay on track even if your situation changes

  
  

You don’t have to figure it all out alone.

 Email: kerenjo@kerenjothomas.com 

Website: www.kerenjothomas.com

 Book a Free Clarity Call to take control of your future.