The Swiss pension system is often hailed as one of the most comprehensive and sustainable systems in the world. Its main objective is to ensure that all residents have a secure and stable retirement income. The system is based on a three-pillar structure, which is designed to provide a multifaceted approach to retirement planning.
The first pillar of the Swiss pension system is the state-run retirement insurance, known as Old Age and Survivors’ Insurance (AHV). This pillar is funded through contributions from both employers and employees and provides a basic level of retirement income for all Swiss residents. The AHV also offers various benefits, such as disability and survivors’ benefits, making it a crucial means of support for individuals and families.
The second pillar consists of occupational pension schemes, known as the Occupational Benefits Insurance (BVG) or the “pension fund”. This pension scheme is mandatory for all employees and is funded through contributions from both employers and employees. It provides a supplementary retirement income on top of the AHV and is managed by private pension funds or insurance companies.
The third pillar is the private pension system, which is voluntary and allows individuals to save for their retirement through personal savings plans and investments. These plans offer various tax benefits and can be tailored to individual needs and preferences. While this pillar may not be mandatory, many individuals opt to contribute to
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