Pension and old Age Insurance

The swiss system is based on three pillars:
  1. The first pillar is made up of the “ Swiss old age and surviving dependents’ insurance ” (AVS), the “ survivors and disability pension plans ” (AI), and the “ complementary benefits ” (PC): The AVS covers the insured person’s vital needs in the case of a loss of income due to old age, or the death of the person insuring the family’s income. This insurance is mandatory, and is paid equally by the employer and employee.
  2. The second pillar is the “occupational pension planning” (often refered to as LPP): once retired, it enables the person to maintain his or her lifestyle. It includes old age benefits, as well as risk benefits in the case of death or disability. It is determined by the occupational pension planning law (LPP). It is paid jointly by the employer and employee.
  3. The third pillar is the “restricted pension plan” (3a) or “additionnal needs” (3b) (voluntary, savings or private insurance). The third pillar’s aim is to complete and perfect the benefits of the two other pillars. It adapts to the person’s needs and desires, and is paid entirely by the employee.
Reitrement is currently set at the age of 64 for women and 65 for men. Foreign workers can perceive their AVS pension in their home country, provided a social security convention exists between Switzerland and the home country.


Further Information