The three-pillar system

The intention of pillar 1 is to protect against falling below the poverty line, which means that the pension should cover the minimum necessary living costs. Pillar 1 comprises old-age and survivors' insurance (OASI), disability insurance (DI) and the income replacement ordinance (EO).

Pillar 2, occupational pension provision (BVG), safeguards the standard of living that you are accustomed to. The occupational pension provision is funded by contributions from employees and employers, at least in equal parts, although the employer may voluntarily opt to contribute more.

The pension assets from pillar 3 (3a and 3b) serve to cover any pension shortfall. They are intended to fund the realization of dreams and wishes after retirement. Around 60% of the income during retirement comes from pillars 1 and 2 and around 40% from pillar 3.