The Swiss pension system has three pillars: 1) a mandatory basic state insurance scheme, 2) a mandatory second pillar of occupational pensions, and 3) voluntary private pensions. The compulsory second pillar means Switzerland has almost equal contributions from all three pillars to retirement income. The public pension system aims to cover basic retiree needs and is financed by payroll taxes. Occupational pensions are mandatory for most employees and involve equal contributions from employers and employees. Private pensions form the third pillar and involve personal savings as well as employer-supported plans.

1. Key Data About the Swiss Pension System
Munich – September 2017

2. Pension system design
The pension system in Switzerland has three pillars:
Sources:
1. The Organisation for Economic Co-operation and Development (OECD) – http://www.oecd.org
2. Bundesamt für Sozialversicherungen – www.bsv.admin.chhttp://www.bpb.de/politik/innenpolitik/rentenpolitik/223145/empirische-befunde
1. mandatory basic state insurance scheme,
2. mandatory second pillar: occupational
pensions and
3. private (voluntary) pensions
The compulsory second pillar system means Switzerland is one of the
few countries where the three pillars contribute almost equally to old-age
income.

3. 1. Public pensions/state pension system
Sources:
1. The Organisation for Economic Co-operation and Development (OECD) – http://www.oecd.org
2. Bundesamt für Sozialversicherungen – www.bsv.admin.chhttp://www.bpb.de/politik/innenpolitik/rentenpolitik/223145/empirische-befunde
• Old-age and survivor pension insurance (Alters- und
Hinterlassenenversicherung / L’assurance-vieillesse et survivants /
Assicurazione per la vecchiaia e per i superstiti), aims to cover the basic needs
of retirees
• Mainly pay-as-you-go financed
• Obligatory for all employees, self-employers and all people domiciled in
Switzerland, incl. those without work (contributions depend on social
circumstances)
• Covers all persons domiciled and working in Switzerland
• Benefits depend on height of working income and period of
contributions
• Eligibility as soon as contributions have been paid for one full year

4. 1. Public pension: statutory for majority of
employees
Men are eligible from the age of 65 and women from the age of 64. Swiss Parliament concluded in March 2017 a reform
(“Altersvorsorge 2020”) of the pension system with regard to pillar 1 and 2 which needs to be voted upon by the Swiss
population. One change is the rise of women’s retirement age to 65, another one more flexibility of retirement age in the
occupational pension.
Source: The World Bank Group. http://www.worldbank.org/

5. 2. Occupational pensions
Sources:
1. The Organisation for Economic Co-operation and Development (OECD) – http://www.oecd.org
2. Bundesamt für Sozialversicherungen – www.bsv.admin.chhttp://www.bpb.de/politik/innenpolitik/rentenpolitik/223145/empirische-befunde
Workplace-based and mandatory: berufliche Vorsorge / Prevoyance Professionelle / Previdenza professionale
• mandatory for employees whose annual earnings exceed CHF 21,150 per year (2017) with the
same employer
• Voluntary for the self-employed
• Contributions are paid in equal parts by employer and employee
• Minimum prevention is prescribed
• Both employee and regular employer contributions are exempted from tax

6. 3. Private pension
Private pensions form a third pillar fixed in the constitution and is mainly characterized through its fiscal
privilege. Two parts: free self-prevention (personal savings) and bonded prevention (facilitation through fiscal
and property politics)
Private pension investments equivalent to: 5.8% of GDP (2015)
Source: OECD (2017), Pension funds' assets (indicator). doi: 10.1787/d66f4f9f-en (Accessed on 17 July 2017)
Private pension assets
2015: $ 794,357.6 million USD (all
forms of private investment with a
value associated to a pension plan
over which ownership rights are
enforced by institutional units,
individually or collectively. This
indicator is measured in millions of
USD; source: OECD)
Pension funds’ assets
2015: $ 794,357.6 million USD
(assets bought with the
contributions to a pension plan for
the exclusive purpose of financing
pension plan benefits. The pension
fund is a pool of assets forming an
independent legal entity. This
indicator is measured in millions of
USD; source: OECD)

7. Net pension replacement rate 2014: 46.9% (individual net pension entitlement divided by
net pre-retirement earnings; measures how effectively a pension system provides a retirement
income to replace earnings. This indicator is measured in percentage of pre-retirement
earnings by gender; source: OECD)
2. Voluntary occupational pensions
Source: OECD (2017), Net pension replacement rates (indicator). doi: 10.1787/4b03f028-en (Accessed on 17 July 2017)

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