Occupational pension

In Switzerland, the Occupational pension forms the second pillar of the pension system (occupational pension plan, BVG). Its aim is to work together with the state AHV (first pillar) to ensure that people can maintain their standard of living after retirement.

The most important points:

• Mandatory: Employees with an annual income above CHF 22'680 (the so-called BVG entry threshold, as of 2026) are compulsorily insured.
• Financing: Employers and employees pay monthly contributions. The employer must pay at least half of these contributions.
• Funding: Unlike the AHV, everyone saves their own individual retirement assets.

In old age, the payout can take the form of a lifetime pension, a lump sum, or a combination of both. Risks such as disability and death are also covered.