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The Swiss three-pillar system

The Swiss retirement system is based on the three-pillar principle, which ensures financial security in retirement, in the event of disability, or in case of death. It combines state, occupational, and private pension solutions to safeguard the standard of living of the population over the long term. Each pillar serves a specific function and complements the others.

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Overview of the three pillars

The three pillars are designed to prevent financial gaps and cover individual needs.

1st pillar: State provision
2nd pillar: Occupational provision (BVG)
3rd pillar: Private provision
1. Säule: Staatliche Vorsorge - desktop
  • Ensuring basic income.
  • Old age and survivor's insurance (AHV), disability insurance (IV), supplementary benefits.
  • Pay-as-you-go system, with gainfully employed individuals financing the retirement benefits of current retirees.

How to proceed

1

Analysis of current provision situation

  • Capturing contributions and entitlements from the 1st and 2nd pillar to date.

  • Assessing existing 3rd pillar solutions (3a/3b).

  • Identifying provision gaps and individual requirements.

2

Strategic planning

  • Defining personal goals: old-age provision, safeguarding in case of inability to work, investing in home ownership.

  • Selecting appropriate products and solutions that match your individual needs.

3

Tax optimization

  • Determining the maximum contributions toward pillar 3a to maximize tax deductions.

  • Assessing tax advantages of long-term planning.

4

Periodic reviews and adjustments

  • Adjusting retirement provision strategy to changed circumstances, for instance due to marriage, childbirth, or work-related changes.

  • Making sure that retirement provision gaps are closed and goals are reached.

Videos on the "Three-pillar system"

Altersvorsorge: ohne freiwilliges Sparen geht es nicht - desktop

Retirement provision: Voluntary savings are essential

Learn why voluntary savings for retirement are essential and how pillar 3a offers a tax-advantaged way to accumulate such savings. You will also get practical tips to analyze your financial situation and set savings goals, as well as guidance on how to consider important aspects such as diversification and risk assessment.

(in German)

Lieber Alf, wie hast du deine Altersvorsorge geregelt? - desktop

Dear Alf, how is your retirement provision organized?

In this video, Alf discusses his retirement provision – openly, honestly, and a bit tongue-in-cheek. It's worth watching!

(in German)

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smzh for You

  • Personalized advice: We analyze your personal retirement situation and develop tailored strategies to help you achieve your goals.
  • Expert knowledge: Our specialists are well-versed in the details of the Swiss three-pillar system and help you make the most of its benefits.
  • Maximizing tax advantages: We show you how to make the most of your pillar 3a contributions for tax purposes.
  • Comprehensive planning: smzh supports you in coordinating all three pillars to ensure your long-term financial security.

We handle questions such as those shown on the right on a daily basis. You don't need to deal with them by yourself – our 360° Check-Up is free of charge and non-binding.

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Pillar 3a is restricted and offers tax advantages. However, 3a savings can only be used for specific purposes (e.g., retirement, inability to work, home ownership). Pillar 3b is unrestricted and not tied to a specific purpose.

Gainfully employed persons with a pension fund may pay up to CHF 7'258 a year into a 3a account (2025). Self-employed persons with no pension fund may pay up to 20% of their net income or a maximum of CHF 36,288.

Contributions toward pillar 3a reduce your taxable income and help close retirement provision gaps. They are an ideal complement to the 1st and 2nd pillar.

At least once a year or in case of significant changes in your circumstances, for instance due to marriage, childbirth, or a new job.

We analyze your current situation, develop personalized strategy, and accompany you in implementing that strategy.