Occupational pension and pension fund

Your pension fund is often your largest asset after your home. Finwise helps you read your pension certificate, understand your benefits and make the right decisions before retirement.

What is it?

The second pillar of Swiss pension provision

Occupational pension supplements OASI for retirement, disability and death, with contributions shared between employer and employee.

Mandatory?

Yes for eligible employees

Affiliation depends on age, annual salary and status. Self-employed people can often insure themselves voluntarily.

Key point

Your pension certificate must be read before deciding

It shows assets, insured salary, contributions, projected benefits, risks and buy-in potential.

LPP and pension fund diagram

Understand your plan: mandatory, above-mandatory, risk benefits.

  1. Lever Above-mandatory Improve the plan if possible
  2. Risks Disability / death Read the regulations
  3. Savings Assets and interest Retirement capital
  4. Base LPP statement The real figures of your plan

A change of employer can strongly alter your rights.

What is occupational pension for?

La LPP, ou prévoyance professionnelle, est le 2e pilier du système suisse. Elle complète l’AVS/AI pour maintenir une partie du niveau de vie à la retraite, en cas d’invalidité ou en cas de décès.

Unlike OASI, occupational pension works by capitalisation: employer and employee contributions fund personal retirement assets. These assets then finance an annuity, capital or a combination of both, depending on your pension fund rules.

2026 parameter
Amount
Why it matters
Entry thresholdAffiliation
CHF 22,680 per year with one employer.
Below this, no mandatory affiliation unless a voluntary solution or more favourable regulations apply.
Coordination deductionInsured salary
CHF 26,460.
It reduces the salary actually insured, especially for part-time and low incomes.
Coordinated salaryMandatory part
Minimum CHF 3,780, maximum CHF 64,260.
The part beyond this depends on your fund's extra-mandatory cover.
Minimum ratesMandatory
Interest 1.25%; conversion 6.8%.
These minimums do not tell the whole story: the extra-mandatory part may follow other rules.

Why the coordinated salary changes everything

Annual salary - Coordination deduction = Insured occupational pension salary

Two people with the same gross salary can have different benefits if their fund adapts the deduction to part-time work, covers extra-mandatory salary or finances more contributions.

Why your pension certificate is essential

The pension certificate shows your insured salary, contributions, retirement assets, projected pension, disability benefits, survivor benefits and buy-in potential. It is the document to read before any retirement choice, property purchase or professional change.

You must distinguish the mandatory part, subject to legal minimums, from the extra-mandatory part, which depends more on the fund regulations. Two people with the same salary can therefore have very different benefits depending on the employer.

Pension buy-in: useful, but not automatic

A pension buy-in can close a pension gap and reduce taxes. The possible amount is indicated by the pension fund. It can be interesting after an income increase, arrival in Switzerland, divorce, part-time period or career break.

The major trap is the 3-year rule: if you withdraw pension capital within three years after a buy-in, the tax advantage can be retroactively cancelled. Before buying in, you therefore need to know whether you are considering a capital withdrawal, property purchase or departure abroad.

Common pitfalls

Occupational pension is decided in the details of the regulations, not only in the displayed balance.

Part-time penalisedThe coordination deduction can significantly reduce the insured salary.
Buy-in too close to capital withdrawalThe 3-year rule can cancel the tax deduction.
Annuity or capital decided too lateThe fund often imposes notice periods for capital withdrawals.
Cohabiting partner not declaredSurvivor benefits may depend on a formal declaration.

I am changing employer or fund: what should I check?

Check the vested benefits transfer, insured salary, extra-mandatory cover, disability/death benefits, conversion rate, fees, asset remuneration and early retirement conditions. A less visible fund can be very expensive in the long term.

Annuity, capital, housing: the big decisions

At retirement, an annuity secures lifelong income. Capital gives more freedom, but transfers investment, longevity and withdrawal discipline risk to you. Many people choose a combination.

Pour un logement, Early withdrawal or pledging can help finance an asset, but also reduces foresight. La décision doit être coordonnée avec le pilier 3a, l’assurance décès, l’hypothèque et la fiscalité.

With Finwise

We turn your pension certificate into concrete decisions

We identify retirement, disability and death gaps, compare buy-in options, measure tax impact and coordinate your 2nd pillar with 3a, 3b and useful private insurance.

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Coordinate your pension fund

Occupational pension must be read together with other pension and retirement decisions.

Prepare my retirement Understand the three pillars Pillar 3a Disability

Analyse my pension certificate Prepare my retirement Understand the three pillars

Let’s talk about your needs

Tell us about your situation in a few lines. A Finwise adviser will contact you to clarify your options and compare suitable solutions.