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Retirement Plan
Switzerland’s retirement plan is based on a three-tiered pension scheme.
1st Tier: AHV/IV
The AHV / IV is the mandatory state pension. It covers basic needs.
2nd Tier: Occupational pensions (pension fund)
Together with the 1st tier, occupational pension plans allow continuation of the accustomed standard of living in an appropriate manner. The occupational pension plan is mandatory for employees with a minimum pre-AHV salary of CHF 20'880.00 (effective 2012) and is guaranteed by the pension fund.
3rd Tier: Private savings plans (optional)
Private savings or private equity can help expand the pension scheme. Each year a certain amount can be saved for this purpose tax free (old age savings plan at bank or insurance company).
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