Self-employed: what provision when you have no mandatory 2nd pillar?

The self-employed face a specific challenge: without a mandatory 2nd pillar, a large share of retirement provision rests on their own shoulders. The good news is that the available tools are powerful — provided you use them deliberately.

The starting point: no automatic 2nd pillar

As an employee, the LPP is deducted automatically. As a self-employed person, it is not mandatory — which means that, left unaddressed, your provision relies almost entirely on the 1st pillar (AVS), well below your working income.

Lever 1: the "large" pillar 3a

This is the cornerstone for the self-employed without a 2nd pillar. You can pay in up to 20% of your net income, capped at CHF 36,288 in 2026 — far more than the CHF 7,258 available to employees. The full amount is deductible from taxable income, making it both a retirement tool and a major tax lever.

Lever 2: voluntary 2nd-pillar affiliation

The self-employed can affiliate voluntarily to an occupational pension scheme — through their professional association or their employees' fund. This opens access to buy-backs, themselves fully deductible, and adds a layer of death and disability cover.

Lever 3: free provision and reserves

Beyond 3a, pillar 3b and ordinary savings give the flexibility a fluctuating income needs — useful as a buffer between strong and leaner years.

The mistake to avoid: putting it off

With irregular income, it is tempting to postpone. Yet the self-employed are precisely those with the most to gain from early, structured planning. The combination of the large 3a and voluntary LPP can rebuild solid provision — and significantly reduce tax along the way.

Helvate designs a provision strategy fit for self-employment, balancing retirement, cover and liquidity. Talk to an advisor.