3-Pillar System
3-Säulen-Prinzip
Simple Definition
The Swiss retirement pension system consisting of State (1st Pillar - AHV), Employer (2nd Pillar - BVG), and Private (3rd Pillar - 3a/3b) provisions.
Why this matters to Expats.
Most expats ignore this until too late. Pillar 1 and 2 rarely cover your current lifestyle (only ~60% of income). If you plan to retire in Switzerland or even abroad, you must understand how these pillars stack. The "Gap" between your salary and your pension is your personal responsibility to fill via Pillar 3.
Actionable Intelligence
The 1st Pillar (State): Mandatory. Pays for basic survival. Redistributional.
The 2nd Pillar (Employer): Mandatory for employees. Saves your own capital. Invested conservatively.
The 3rd Pillar (Private): Voluntary. Massive tax advantages. Invested how you choose (Cash vs Stocks).
Frequently Asked Questions
Can I take it with me?
Pillar 2 and 3 can often be cashed out if leaving EU. Pillar 1 usually stays or pays a small pension abroad.
Is it enough?
No. For high earners, the 1st+2nd pillar often only replaces 40-50% of income.
Where do I see my total?
There is no single "dashboard". You must collect statements from the AHV office, your Pension Fund, and your Bank.
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