Understanding the Swiss pension system: the 3 pillars explained

Swiss pension provision rests on three pillars, each with a distinct role. Understanding how they fit together is the first step to securing your retirement — and spotting your own gaps.

1st pillar: covering basic needs

The state pension (AVS/AI) is mandatory and works on a pay-as-you-go basis: today's contributors fund today's pensioners. Its goal is to cover basic living needs in retirement, in the event of disability or death. On its own, it rarely maintains your standard of living.

2nd pillar: maintaining your standard of living

Occupational provision (LPP) complements the 1st pillar for employees earning above the entry threshold (CHF 22,680 per year in 2026). Funded jointly by employer and employee, it is capitalised: you build up your own savings. Together, the 1st and 2nd pillars aim for roughly 60% of your final salary.

3rd pillar: closing the gap

Because the first two pillars rarely replace a full income, the 3rd pillar — voluntary, individual provision — fills the difference. Pillar 3a (tied) offers strong tax advantages; pillar 3b (free) is more flexible. This is the lever you control directly.

Why map your situation

Part-time work, career breaks, self-employment or time spent abroad all create gaps. A pension review reveals them while there is still time to act. Helvate analyses your three pillars together and builds a plan aligned with your goals.

Want a clear picture of your pension situation? Talk to a Helvate advisor.