Welfare Services

The Swiss three-pillar principle

The old age and survivors insurance and the disability insurance are based on a three-pillar principle.

Herewith forms the AHV/IV the first pillar. As a kind of government pension it must cover the minimum living standard of the insurer.

The second pillar represents the professional pension. The first and the second pillar ensure that the insured person after retirement can continue with his current living standard up to then.

The third pillar, or the private pension, shall round off the system and allow the individual, to determine the desired living standards himself. The third pillar is voluntary and is financed by one’s own resources, whereby the state promotes this private pension via tax relief.

The 3. pillar

This pension provision is accessible to everyone, who is working and is under 70. Age will be continued.
The maximum contributions that can be paid annually in the third pillar are defined by the authorities and may be deducted from the taxes.
The third pillar as a pension is not subject to the property tax. At the earliest five years before you reach the normal AHV retirement age you can receive the pension funds. In case of continuation of employment the receipt of the 3. pillar can be delayed up to five years.

The system allows certain exceptions, to receive the private pension prematurely, for example for the financing of residential property, purchase of additional pension benefits (2. pillar), taking up of independent activities, emigration from Switzerland or receipt of the IV-pension, if no additional insurance for the individuality risk exists.

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