WHAT IS THE 3RD PILLAR?
The swiss pension system is based on 3 pensions
PILLAR 1
STATE PENSION
​
Your state pension is provided by the swiss government. The level of pension depends on the number of years you worked in Switzerland and your average salary during your work life.
The maximal monthly pension reaches CHF 2390.-.
PILLAR 2
COMPANY PENSION
Your company pension is based on your salary. Usually, a fraction of your gross income is put away in your company pension. In addition, your employer also participate equally.
Your company pension also depends on the plan you company chose.
PILLAR 3
PRIVATE PENSION
Once you retire, for most people, the cumulation of state and company pension do not exceed 60% of previous income.
In that case, you need to plan a private pension. The swiss tax system allows to deduct up to CHF 6'883.- per year (2022). The amount exceeding that limit has only limited tax incentives.