What is it?

Three levels for retirement, disability and death

The 1st pillar covers basic needs, the 2nd pillar supplements professional income and the 3rd pillar closes personal gaps.

Mandatory?

Not for every pillar

OASI/DI is mandatory, occupational pension depends on status and salary, while pillars 3a and 3b are private decisions.

Key point

The first two pillars are not always enough

Part-time work, divorce, arrival in Switzerland, self-employment, high income or a mortgage can create a significant gap.

Diagram of the three pillars

Each pillar has a distinct role. Mixing them up creates gaps.

  1. Individual 3rd pillar Top up retirement and risks
  2. Occupational 2nd pillar LPP via the employer
  3. State 1st pillar AHV, IV, loss-of-earnings allowances

Read the framework before choosing a product.

What are the three pillars for?

Swiss pension provision covers three major risks: retirement, disability and death. It is based on three complementary levels: the public 1st pillar, the occupational 2nd pillar and the private 3rd pillar.

The system is solid, but it does not automatically guarantee your lifestyle. The first two pillars provide a base, often insufficient when income, family expenses, mortgage costs or retirement plans are high.

Pillar
Role
Key 2026 figures
1st pillarOASI / DI / supplementary benefits
Cover basic needs in case of retirement, disability or death.
Full annual OASI pension: CHF 15,120 to CHF 30,240 depending on income, contribution years and situation.
2nd pillarOccupational pension / pension fund
Supplement OASI to maintain part of the professional standard of living.
Mandatory affiliation from CHF 22,680 annual salary with one employer; coordination deduction CHF 26,460.
3rd pillar3a / 3b
Close gaps, optimise taxes, protect loved ones or finance a project.
3a ceiling: CHF 7,258 with a pension fund, or 20% of net income up to CHF 36,288 without a pension fund.

The logic of the three pillars

Basic needs + Standard of living + Personal choices = Plan without improvising

A good pension plan is not about opening a random product. It is about knowing what would be paid in case of retirement, disability or death, then closing the useful gap.

1st pillar: OASI, DI and basic benefits

The 1st pillar is state pension provision. It includes OASI, DI and supplementary benefits. It is mandatory for people domiciled or working in Switzerland and mainly works on a pay-as-you-go basis.

Pensions depend on contribution years, average income and family situation. Career breaks, late arrival in Switzerland, years abroad or periods without contributions can create gaps. The 13th OASI pension is planned from December 2026 for old-age pension recipients.

2nd pillar: occupational pension and pension fund

The 2nd pillar supplements OASI/DI. In 2026, mandatory occupational pension affiliation generally applies to employees subject to OASI who earn more than CHF 22,680 per year with one employer. Death and disability risks are generally covered from 1 January after the 17th birthday, then retirement savings from 1 January after the 24th birthday.

Mandatory occupational pension does not cover the full salary. The calculation uses a coordination deduction of CHF 26,460, with a minimum coordinated salary of CHF 3,780 and a maximum of CHF 64,260 for the mandatory part. Self-employed people are not automatically affiliated and must analyse their pension provision carefully.

3rd pillar: 3a, 3b and life insurance

Le 3rd pillar est facultatif. Le pilier 3a est lié, fiscalement déductible et réservé aux personnes avec un revenu soumis à l’AVS. Le pilier 3b est plus libre : versements, durée, bénéficiaires et retraits sont généralement plus souples.

Une assurance vie peut ajouter une protection décès, incapacité de gain ou libération des primes en plus d’une épargne. Elle n’est pas toujours nécessaire, mais elle devient utile quand une famille, un prêt hypothécaire ou un partenaire dépend de votre revenu.

Common pitfalls

Pension planning seems simple until a status changes or a pension certificate reveals a gap.

Thinking the whole salary is coveredMandatory occupational pension is capped and coordinated with OASI.
Forgetting part-time workThe coordination deduction can significantly reduce the insured salary.
Confusing 3a and 3b3a optimises taxes, while 3b gives more freedom.
Waiting until retirementPension fund buy-ins, multiple 3a accounts and protection for loved ones should be prepared early.

I already have a 3rd pillar or pension fund: what should I check?

Check your beneficiaries, fees, returns, risk component, death or disability guarantees, pension fund buy-in possibilities and the organisation of several 3a accounts. Since 2026, retroactive 3a catch-up contributions can also become a lever under conditions for certain gaps that appeared from 2025.

Which profiles should do a review?

A review is particularly useful when getting married, divorced, buying property, arriving in Switzerland, becoming self-employed, having a child, increasing income, working part-time, changing employer or preparing retirement. These moments often change expected benefits and real needs.

Pour une entreprise, la qualité de la prévoyance professionnelle peut aussi devenir un avantage RH : meilleure couverture risque, plan LPP plus généreux, financement employeur ou solutions pour cadres.

With Finwise

We turn your three pillars into a clear plan

We read your pension certificate and analyse OASI, 3a, 3b, life insurance, taxation, family, mortgage and projects. The goal is not to accumulate products, but to build pension provision consistent with your situation.

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