For SMEs: The right retirement provisions at the right time

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For SMEs: The right retirement provisions at the right time

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Ambitious start-up or traditional company? The demands on the pension fund can change over the course of the company's life cycle. This makes it all the more important to find the right retirement provision solution.
Company owner in the office

How old is your company? Is it an ambitious start-up or can you look back on a long and proud history? Find out which retirement provision solution best suits your personal situation.

Occupational retirement provision is an investment in employees. It makes them loyal to the company in the long term and can offer extra arguments for recruitment processes. At the same time, it has to be secure and sustainable – in every phase of the company's development. After all, the demands on pension funds can change over the course of the company’s life cycle.

Retirement provision strategy for new entrepreneurs

Individuals who set up a sole proprietorship and don't have any employees at this stage normally take out pension provision under pillar 3. Self-employed persons without pillar 2 can pay up to 20 percent of their net income into pillar 3a, currently a maximum of CHF 35,280. It may be possible to join a pension fund via a professional association or with the state pension fund.

Both variants offer the option of saving for old age, as well as insuring against the risks of disability and death. The pension fund solution facilitates a seamless return to an employment relationship if self-employment is not permanent. The advantage of pillar 3a is that it offers more flexibility. Either way, it is important not to leave too many gaps in your retirement provision in the early stages, as these can only be partially compensated for later.

The situation is different if you are founding a start-up with one or two employees. A pension fund solution is then mandatory, at least for your employees. If you do not have much money available at the beginning, you can, for example, choose higher risk benefits in the start-up phase and a minimum solution for savings. As soon as the company has become established, it is advisable to expand the pension fund, increase the retirement benefits and make purchases into pillar 2.

Vita Relax: the solution for start-ups

Minimal effort – maximum impact: the Vita Relax pension fund solution is tailored to the needs of start-ups. You fulfill your obligations as an employer simply and can manage your occupational retirement provision safely and easily. The risks are borne entirely by Zurich – for maximum security. With this no-frills solution, start-ups can concentrate fully on their core business.

Mandatory BVG for limited liability (GmbH) companies and public limited (AG) companies

Anyone who converts their sole proprietorship into a GmbH or AG after two or three years, or starts their own business with a corporation, is considered an employee of their own company and must join a pension fund accordingly. There is also room for maneuver here – the savings contributions can, if desired, be extended beyond the statutory minimum in accordance with the company budget. For tax purposes, it may be of interest for the company to pay more than half of the pension fund contributions, for example in a ratio of 60 to 40. A higher proportion should be discussed with the fiduciary.

The pension fund grows with you

Is the company on track for success? Now is the time to check whether the benefits of the pension fund solution still meet the increased income and higher requirements. Incidentally, occupational retirement provision with generous benefits is also an important instrument for attracting qualified talent and retaining it in the long term. Do you employ staff on a part-time basis? For them, it is crucial to reduce the coordination deduction in line with their workload or to dispense with it altogether. Otherwise, excessive losses will arise in terms of retirement and risk benefits. It is advisable to review the chosen pension fund solution every two to three years with the retirement provision specialist.

Vita Classic: as flexible as your business needs

Vita Classic is the retirement provision solution of the Vita Collective Foundation, one of the most important pension funds in Switzerland. It is committed to fair, flexible and sustainable occupational retirement provision. The Vita Classic model offers many design options, including possibilities for new ways of working. It can be flexibly tailored to the needs of the company and its employees. Thanks to a broadly diversified and sustainable investment strategy, all companies benefit from stable investment income. With the transparent retirement provision model, insured persons participate directly in the investment income.

Harvest time – including in the pension fund

If the company is established on the market and has reached a certain size, it is worth asking: "How much leeway does the pension fund offer us?"

A BVG solution with extended pension benefits might become an option now, e.g. for the management team. For example, higher savings contributions for retirement savings capital or improved risk benefits can be included there. Solutions in which a company pursues an individual investment strategy are of interest for the most profitable investment possible. This can often significantly increase the value of pension funds assets in the long term

Vita Invest: individual solution with a higher return potential

Vita Invest's occupational retirement provision offering has three strengths: First, every company benefits in full from the investment income it generates itself. Second, Vita Invest ensures generational fairness, meaning that persons in gainful employment and retired persons have the same guarantees and benefit directly from investment performance to the same extent – persons in gainful employment thanks to higher interest and retired persons thanks to an annuity bonus. Third, risk benefits for death and occupational disability can be adapted individually to the needs of each company.

Will flexible retirement become an issue? Regardless of whether it's for yourself or your employees: it's worth setting the course early for retirement – for example with pillar 2 purchases offering tax benefits.

Handing over the reins of the company

It is likely to be on your mind for a long time: one day, your life's work will transfer into other hands, or the company will be dissolved. For you as an entrepreneur, it is now important to define the framework conditions for your own retirement: would you like to receive your pension benefits as a lump sum, as an annuity or in a mixed form? Individual financial and pension planning makes sense.

If the company is sold, occupational retirement provision should not be forgotten during the negotiations: if there is a change of pension fund, the new solution should offer benefits that are just as good as those in the previous one. Comprehensive advice ensures that a good long-term solution can be found for everyone involved.

Occupational retirement provision with Vita

Flexible standard solution? Tailored investment strategy? Additional protection for management staff? Find out how you can provide optimal protection for your employees and which retirement provision solution best suits your company.

Find out more

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