Swiss Pensions – 2nd Pillar

Swiss Pensions – 2nd Pillar

2nd Pillar Swiss Pension Fund

Pillar 2 (BVG German, LPP French)

The 2nd pillar is compulsory for all employed people over the age of 24 in Switzerland earning above CHF 21,510.  The contributions are paid by employer and employee.

There are two parts of the 2nd pillar. Saving contribution and risk contribution, the risk part is for death and disability.

The Swiss government sets minimum contribution levels, which will rise from 7% to 18% of insured salary as you become older. The retirement assets accumulated in the 2nd pillar can usually be taken at age 58 however under certain circumstances these can be accessed earlier. The main reason for this is property purchase in Switzerland

As an international person paying pillar 2 contributions it may also be possible to purchase missed years.  This would have the effect of increasing retirement assets whilst reducing tax liability.

If you would like to know more about the 2nd pillar system, including the benefits you receive now, projections for retirements and if it is possible to optimize your 2nd pillar please click here.