PRE-PROVISION RETIREMENT SAVINGS / LIFE INSURANCE

The Swiss pension system is made up of three pillars:

 

The first pillar called AVS (Aide aux Vieillissement des Survivants) is a distribution system like in France. It is mandatory from January 1st following your 17th birthday. The AVS was created in 1946 and is based on a post-war economic system, therefore more suited to our current economy.

 

The second pillar called LPP (Professional Pension Act) is, as its name suggests, a professional pension system. These savings are financed partly by you as an employee and partly by your employer. It is mandatory from January 1st following your 24th birthday. It is therefore calculated based on your income and your years worked as an employee.

 

The third pillar called PI (Individual Pension) is private savings that allows you to fill the gaps in the first two pillars and also protect your family. There are two types of third pillar, 3A and 3B, either the third pillar linked or free, to be adapted according to your personal situation.

 

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Due in particular to the overall aging of the population as well as negative bank interest rates, income from the 1st and 2nd pillars at retirement is significantly reduced. Today, fewer and fewer workers are contributing for an increasing number of retirees. These different developments make the 3rd pillar an essential element.

 

The 3rd pillar is strongly encouraged by the Swiss Confederation, which is why you benefit from significant tax advantages each year. These may vary depending on your canton of residence.

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Today, having your third pillar means:

 

A favorable tax system

 

A guaranteed capital

 

A significant return

 

Family protection (life insurance included)