Pensions: the three pillars

Swiss retirement income rests on three pillars. The state old-age and survivors' insurance (AHV/AVS) covers basic needs. Occupational pension funds (BVG/LPP) aim, together with the AHV, to provide about 60% of your last salary. Voluntary private saving (pillar 3a) tops this up with tax relief.

Pillar 1: AHV/AVS

• Contributions: employees pay from 1 January after their 17th birthday. AHV, disability (IV) and income-compensation (EO) contributions total 10.6% of salary, half paid by you and half by your employer (2026). People who stop working before pension age must keep paying as non-employed persons.
• Pension age: 65 for men. For women it is rising in steps: 64 years and 6 months for women born in 1962 (2026), and 65 for everyone from 2028. You can draw the pension from age 63 or defer it by up to 5 years.
• Amount: you need at least one full contribution year. A full pension (scale 44) requires contributions every year from 1 January after your 20th birthday until pension age. Each missing year usually cuts the pension by at least 1/44. A full monthly pension is between CHF 1,260 and CHF 2,520, and a married couple's two pensions together are capped at CHF 3,780 (amounts set in 2025 and still valid in 2026).
• 13th pension: from December 2026, pensioners receive an extra monthly pension each December.

Pillar 2: occupational pension (BVG/LPP)

Employers must insure employees who earn more than CHF 22,680 a year with one employer (2025–2026 threshold) in a registered pension fund. Both pay contributions, and the fund's rules set the details. The compulsory part covers salary up to CHF 90,720 a year, after a coordination deduction of CHF 26,460 (2025–2026).

Pillar 3a: private pension savings

You can pay into a tied pension account or policy and deduct it from taxable income. If you have a pension fund, the maximum is CHF 7,258 a year (2025 and 2026; usually adjusted every two years). From 2026 you can fill gaps from 2025 onwards, up to 10 years back, in any year in which you also pay the full maximum.

Agreements with other countries

For EU and EFTA nationals, the Agreement on the Free Movement of Persons (in force since 1 June 2002) coordinates pensions, so insurance periods in those countries are taken into account. Switzerland also has bilateral agreements with countries such as Australia, Brazil, Canada, Japan, the Philippines, Türkiye, the United Kingdom and the United States. Some agreements, for example with China, India and South Korea, only decide which country's insurance you belong to, not your pension rights.

Common pitfalls for newcomers

• Years abroad leave gaps that can permanently reduce your AHV pension. Ask your compensation office for your account statement.
• If you come from a country without an agreement, foreign insurance periods do not count. If you leave Switzerland for good, you can ask for your AHV contributions back without interest, provided you paid for at least one full year.
• Supplementary benefits (EL) for low pensions are only paid to people living in Switzerland.

Official guidance: AHV/IV: old-age pensions (leaflet 3.01), AHV/IV: occupational pensions (leaflet 6.06), FSIO: pillar 3a FAQ, FSIO: list of social security agreements, AHV/IV: nationals of non-agreement states (leaflet 10.03)