Updated
Swiss retirement provision is organised in three pillars, and the separation between them is clearer than in most countries. The first pillar, the state AVS scheme, is pay-as-you-go and pays a capped pension based on average income and years of contribution, aimed at covering basic needs. The second pillar, occupational provision that is compulsory above a salary threshold, is funded: the accumulated capital is converted into a pension using a conversion rate fixed by law for the mandatory part. The third pillar is individual and tax-favoured, with an annual ceiling that differs according to whether you belong to a pension fund. The simulators on these pages quantify the pillars separately, because only their combination shows the replacement rate actually achieved. For anyone who arrived in Switzerland mid-career, missing contribution years are the single largest factor.
Pension Calculator Switzerland
Estimate your Swiss AVS state pension, project your LPP occupational capital, and optimize your Pillar 3a & 3b private savings -- all in one place.
Public Pension
Calculate your AVS (1st pillar) annuity and LPP (2nd pillar) occupational pension. Based on current federal scales and the AVS 21 reform.
Private Pension
Project your 3rd pillar: Pillar 3a (tax-deductible, locked) and Pillar 3b (flexible, unrestricted). Compare risk profiles and optimize your individual savings.
How it works
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Public pension (AVS + LPP occupational scheme) or private savings (Pillar 3a & 3b).
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Age, salary, current LPP balance... adjust the sliders and see results in real time.
Understand and optimize
Charts, breakdowns, and educational content on the Swiss 3-pillar system to help you plan ahead.
Reference age
65 years
For both men and women (AVS 21 reform)
Full contribution
44 years
Required for a complete AVS annuity
3-pillar system
AVS+LPP+3rd
Unique Swiss model: state + employer + private
LPP conversion rate
6.8%
Minimum rate to convert LPP capital into annuity
Understanding the Swiss pension system
The Swiss pension system is built on three pillars, a model established progressively over the course of the 20th century. The first pillar -- the AHV (known as OASI in English) -- was introduced in 1948 to guarantee a basic income for all residents of Switzerland. The second pillar (BVG/LPP), made compulsory in 1985, aims to maintain the standard of living enjoyed before retirement. The third pillar, which is voluntary, encourages individual savings through tax incentives. Together, these three pillars form a comprehensive framework that is internationally recognized for its robustness and sustainability.
The public component of the system comprises the AHV (1st pillar) and the BVG/LPP (2nd pillar). The AHV is funded on a pay-as-you-go basis: contributions from the working population finance the pensions of current retirees. The maximum AHV pension is CHF 2,520 per month for a single person with a full contribution record. The BVG/LPP operates on a funded basis: each insured person accumulates an individual balance through employee and employer contributions. The coordinated salary -- the portion of income subject to BVG/LPP contributions -- determines the age credits allocated each year. The minimum conversion rate of 6.8% transforms this accumulated capital into a lifelong pension at retirement.
Private pension provision complements the public benefits. Pillar 3a (tied provision) allows tax-deductible contributions of up to CHF 7,258 per year for employees affiliated with a 2nd pillar fund. These funds remain locked until five years before the reference age, except in specific cases (purchase of owner-occupied property, permanent departure from Switzerland, or starting a self-employed activity). Pillar 3b (flexible provision) offers complete freedom: no contribution cap, withdrawals possible at any time, and a wide range of products including life insurance, investment funds, and savings accounts. Combining these instruments effectively allows you to bridge the gap between the benefits of the first two pillars and your desired retirement income.
Key points
AHV/OASI and BVG/LPP
The AHV (Alters- und Hinterlassenenversicherung), known as OASI in English, is the 1st pillar of the Swiss pension system. The maximum AHV pension amounts to CHF 2,520 per month for a single person who has contributed throughout their entire working life. Married couples receive a combined maximum of 150% of a single pension.
The BVG (Berufliche Vorsorge), referred to as LPP in French, forms the 2nd pillar. It is mandatory for employees whose income exceeds the entry threshold. The minimum conversion rate is 6.8% for the obligatory portion: an accumulated balance of CHF 100,000 therefore generates an annual pension of CHF 6,800.
The coordinated salary -- the portion of income subject to BVG/LPP contributions -- is determined after deducting the coordination deduction. Age credits increase with age: 7% (25-34), 10% (35-44), 15% (45-54), and 18% (55-65), building the retirement capital that will be converted into a pension or withdrawn as a lump sum.
Reference age and conditions
Since the AHV 21 reform came into effect, the reference age is set at 65 years for both men and women. Women born between 1961 and 1969 benefit from transitional measures, including a pension supplement and preferential reduction rates.
To receive a full AHV pension, you must have 44 years of contributions without gaps. Each missing year results in a proportional reduction of the pension amount.
It is possible to draw your AHV pension early, up to 2 years before the reference age, with a reduction of 6.8% per year of early withdrawal. Conversely, deferring the pension (up to 5 years) increases it by 5.2% to 31.5% depending on the duration.
Pillar 3a and 3b
Pillar 3a (tied pension provision) allows employees affiliated with a pension fund to contribute up to CHF 7,258 per year (2026 cap). Self-employed individuals without a 2nd pillar can deduct up to 20% of net income, capped at CHF 36,288.
Pillar 3b (flexible pension provision) has no contribution cap and offers greater flexibility: withdrawals at any time, a variety of products (life insurance, savings accounts, investment funds). Its tax treatment varies by canton.
BVG/LPP buy-ins are another lever: they allow you to fill contribution gaps in the 2nd pillar and are fully deductible from taxable income in the year of payment, making them a powerful tax-planning tool.
Tax advantages
Contributions to Pillar 3a are fully deductible from taxable income at both the federal and cantonal level. At a marginal tax rate of 35%, a CHF 7,258 contribution translates into tax savings of approximately CHF 2,470.
Buy-ins into the 2nd pillar (BVG/LPP) are also deductible from taxable income with no upper limit, making them a particularly attractive fiscal planning tool for high earners.
When withdrawing capital (2nd or 3rd pillar), taxation is applied at a reduced rate, separate from other income. Rates vary significantly from canton to canton, which is why integrating tax considerations into your pension strategy is essential.
AHV 21 reform and outlook
The AHV 21 reform, effective since 1 January 2024, harmonizes the reference age at 65 for both men and women. It also introduces greater flexibility for the transition to retirement between the ages of 63 and 70.
A transitional pension supplement is granted to women of the transitional generation (born between 1961 and 1969) to compensate for the increase in the reference age. This supplement is paid for life and is not subject to the married-couple pension cap.
The BVG/LPP reform is currently being debated in Parliament. It aims to lower the minimum conversion rate, improve coverage for low incomes and part-time workers, and strengthen the savings process for younger employees.
Frequently asked questions
What is the retirement age in Switzerland?
Since the AHV 21 reform (1 January 2026), the reference age is 65 years for both men and women. However, you can draw your pension early from age 63 (with a reduction) or defer it until age 70 (with a supplement). Women born between 1961 and 1969 benefit from specific transitional provisions.
How is the AHV pension calculated?
The AHV pension depends on three factors: the contribution period (44 years for a full pension), the average annual determinant income (the revalued average of earnings over the entire career), and any credits for childcare or caregiving duties. The minimum pension is CHF 1,260/month and the maximum is CHF 2,520/month for a single person.
What pension products are available in Switzerland?
Switzerland offers a comprehensive range of solutions. The 1st pillar (AHV/OASI) is mandatory and state-run. The 2nd pillar (BVG/LPP) is mandatory for employees and managed by pension funds. The 3rd pillar is voluntary: Pillar 3a (tied) offers tax advantages through bank accounts or insurance policies, while Pillar 3b (flexible) encompasses life insurance, investment funds, and other savings vehicles with no defined cap.
How much will I receive in retirement in Switzerland?
The amount depends on your combined three pillars. As a general rule, the Swiss system aims to guarantee approximately 60% of your final salary through the 1st and 2nd pillars. The 3rd pillar supplements this income. For a personalized estimate, use our calculators: they compute your AHV pension, your BVG/LPP capital, and your 3rd pillar projection based on your actual data.
Can I retire early in Switzerland?
Yes. The AHV allows early withdrawal 1 or 2 years before the reference age of 65, with a reduction of 6.8% per year of early withdrawal. The BVG/LPP also permits early retirement, often from age 58 depending on the pension fund regulations, but with a lower accumulated balance and a reduced conversion rate. Careful planning is essential to assess the financial impact of early retirement on your overall pension income.