Pensions in Switzerland
The Swiss pension system is fairly unique in its design and structure. It consists of 3 pillars:
The 1st pillar: This is the government/state part. Contributions here go towards your old age pension, as well as unemployment benefits. This is mandatory.
The 2nd pillar:
This refers to occupational pension. This is mandatory up to a certain income level.
The 3rd pillar:
This refers to voluntary additional pension contributions, that can help avoid financial shortfalls in retirement. It also has attractive tax benefits.
The Swiss 3rd pillar system is a fantastic way to reduce your tax by as much as 2000 CHF a year, whilst also generating a minimum guaranteed return and security. You can build life cover for you and your family into a policy and even leverage your 3rd pillar against a mortgage. The only question is, should you have your 3rd pillar with a bank or an insurance company? We can advise you on the various options available and which one suits your requirements best.