BVG (pension supplement)

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The pension supplement, the AHV, ensures that retirees, widows, and the disabled can maintain their current standard of living and remain comfortable in the later years of life. The payment of the pension contribution is mandatory for each employee from certain posts. With the contribution payment, the employee not only ensures a comfortable pension in older age, but at the same time also insures against disability and death.

How to choose a pension fund?

A high return on capital is the most important point for most persons in selecting a pension fund. But the additional services in the fields of disability benefits, widows’ pensions, etc. should be noted. Trust us, and you a quote for the appropriate pension fund that best fits your lifestyle and needs.

The three- pronged approach

The pension plans in Switzerland

The occupational pension in Switzerland is based on three pillars: the federal old-age, survivors' and disability insurance (1st pillar), the occupational pension (2nd pillar) and self- insurance (3rd pillar) ( see Federal Constitution, Article 111 , § 1). The so-called three-pillar system has to secure the goal of the standard of living in retirement, disability and death benefits for the insured or their survivors.

State Pension (1st pillar)

The state pension includes old-age and survivors insurance (OASI) and the Disability Insurance (DI) and any supplementary benefits (EL). The AVS ensures the basic needs of retirees. It not only guarantees the subsistence level for retirees, but also pays widows and orphans of the deceased. The amount of the pension paid depends both on the level of previous income and the duration that the pension-holder has paid into the AHV. Every Swiss employee - whether externally employed or self-employed - is obliged to pay AHV contributions.

The Disability Insurance (DI) support those persons who are disabled from birth, through accidents, or illness, and therefore they are no longer able to work, or are only able to work at a limited extent. The IV aims to integrate the disabled, and allow them to care for themselves.

The supplementary benefits (EL) come into play if the benefits from the OASI and IV are not sufficient to cover the living expenses of the insured. Those who need additional help can apply for additional funds. The need and the level of contributions are individually considered and investigated on a case-by-case basis.

Occupational Pension (2nd pillar)

The pension supplement, the AHV, ensures that retirees, widows, and the disabled can maintain their current standard of living and remain comfortable in the later years of life. The payment of the pension contribution is mandatory for each employee from certain posts. With the contribution payment, the employee not only ensures a comfortable pension in older age, but at the same time also insures against disability and death.

Private Pension (3rd Pillar)

The private pensions form the third pillar of the Swiss pension system. The contributions of the first and the second pillars may leave significant gaps compared to the previous income earned during one’s working years. Through private pension payment, for example to a pillar 3a account, such pension gaps can be closed and fortunes can be built. Payment of contributions to the third pillar are voluntary.