SWISS THREE-PILLAR PENSION SYSTEM
Switzerland’s pension system is made of three pillars: state, occupational and private pension provision.
The purpose of 1st Pillar – old-age, survivors' and disability insurance, or AHV – is to secure livelihood.
The 2nd Pillar – occupational benefits insurance, or BVG – is intended to maintain the accustomed standard of living in an old age. Both 1st and 2nd Pillars are mandatory.
The 3rd Pillar, which is voluntary, enables to build up private pension provision to secure old age but also to save on taxes and insure risks such as death and occupational disability.
