The 1st pillar, for which the State is responsible, is mandatory for all. The 2nd pillar, determined by the employer, is mandatory for salaried workers and optional for the self-employed. The 3rd pillar is, however, completely voluntary and the choice of the individual.
The provision from the state itself comprises insurance for old age and surviving dependants (AVS - ‘assurance vieillesse et survivants’), invalidity insurance (AI - ‘assurance invalidité), and supplementary provision (PC - ‘prestations complémentaires’). It aims to provide for the vital needs of those covered in their retirement, in the event of disability arising from an accident or to prevent financial hardship on the family in the event of the death of the insured person.
The 2nd pillar comprises professional pensions (LPP) and accident benefits (LAA), and is financed jointly by the worker and his or her employer.
The 3rd pillar, private and voluntary pensions for the purpose of supplementing the provisions of the state pension scheme (1st pillar) and the occupational pension scheme (2nd pillar), provides additional financial resources in the form of a capital payment upon retirement.
Calculate your income on retirement
Retirees need an income of around 80% of their final salary if they are to maintain the same standard of living. However, their minimum pension income will only account for about 60%* of their final salary.
In the calculator below we will use this figure, as well as your desired income, as a basis to estimate how much more income you would need to achieve your desired level for retirement. For a detailed calculation that reflects your personal situation we invite you to meet one of our advisors in-branch.
Use the calculator below to see how much more income you would need: