Swiss Retirement Planning: The 3-Pillar System

Understand AHV, BVG, and Pillar 3a — and how to plan your Swiss retirement

How Swiss Retirement Works

Switzerland uses a unique 3-pillar retirement system designed to maintain your standard of living after retirement. Each pillar serves a different purpose, and together they aim to replace about 60–80% of your last salary. Pillar 1 covers basic needs through the state pension. Pillar 2 provides occupational benefits through your employer. Pillar 3a offers voluntary, tax-advantaged savings that you control directly.

Pillar 1 (AHV/AVS): State pension — max CHF 2,520/month (2025/2026) Pillar 2 (BVG/LPP): Employer pension — varies by salary and fund Pillar 3a: Private savings — max CHF 7,258/year for employees (2025/2026)

Pillar 1: AHV/AVS — The State Pension

The AHV (Alters- und Hinterlassenenversicherung) is Switzerland's mandatory state pension. Everyone who lives or works in Switzerland contributes. The monthly pension ranges from CHF 1,260 to CHF 2,520 for a single person, depending on your contribution history and average lifetime income. To receive the maximum pension, you need an uninterrupted contribution history of 44 years and an average annual income of at least CHF 90,720. Starting in 2026, a 13th pension payment is made in December, bringing the maximum annual total to CHF 32,760. Retirement age is currently 65 for both men and women. You can claim early (from age 63) with a permanent reduction, or defer until age 70 for a higher monthly amount.

In the calculator, select Switzerland as your country. The AHV pension is pre-filled at the maximum (CHF 2,520/month). Adjust downward if you have contribution gaps or lower average income.

Pillar 2: BVG/LPP — Employer Pension

The BVG (Berufliche Vorsorge) is your employer-managed occupational pension. It is mandatory for employees earning above the entry threshold (CHF 22,050/year in 2025/2026). Both you and your employer contribute — typically each paying half. Your pension fund sends you an annual pension certificate showing your projected monthly pension at retirement. This is the number to enter in the Pillar 2 field of our calculator. The BVG pension depends on your salary, contribution years, and your fund's investment performance. Combined with AHV, Pillars 1 and 2 typically replace about 60% of your last salary.

Pillar 3a: Tax-Advantaged Private Savings

Pillar 3a is your most powerful retirement tool. Contributions are fully deductible from taxable income, providing immediate tax savings of 20–40% depending on your canton. The maximum annual contribution is CHF 7,258 for employees with a pension fund, or CHF 36,288 for self-employed without a pension fund (2025/2026). New from 2026: you can now make retroactive contributions to fill gaps from 2025 onward, up to 10 years back. This is a major opportunity for people who missed contributions in previous years. Pillar 3a funds are locked until 5 years before retirement age, with exceptions for home purchases, starting a business, or leaving Switzerland permanently.

Enter your annual Pillar 3a contribution in the calculator. The tool converts it to a monthly amount and adds it to your savings projection. Maximizing your 3a contribution every year is one of the most effective ways to reduce your tax bill and grow your retirement savings.

Using the Calculator for Swiss Planning

1. Select Switzerland as your country — this loads Swiss defaults (CHF 88,000 salary, 1.5% inflation, 5% return, AHV max pension). 2. Enter your Pillar 2 (BVG/LPP) expected monthly pension from your annual pension certificate. This is added to your AHV pension. 3. Enter your annual Pillar 3a contribution. This is converted to monthly savings and added to your projection. 4. Adjust your monthly savings to include any additional private savings beyond Pillar 3a. 5. Set your desired retirement income — a common target is 80% of your current salary. 6. Click Calculate to see your full projection including all three pillars combined.

Ready to Plan Your Swiss Retirement?

Use the retirement calculator with Swiss-specific settings to see how your AHV, BVG, and Pillar 3a combine for a complete retirement picture.

Open Retirement Calculator