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Glossary

Three-Pillar System

The Three-Pillar System is the Swiss retirement provision model consisting of the state AHV/IV (1st Pillar), occupational pension under BVG (2nd Pillar), and private provision (3rd Pillar). The aim is for the first two pillars together to secure approximately 60 per cent of the last salary (Art. 113 of the Federal Constitution).

At a glance

  • Constitutionally anchored in Art. 111 to 113 of the Federal Constitution; the 1st and 2nd Pillars are compulsory, the 3rd Pillar is voluntary.
  • The 1st and 2nd Pillars together are intended by the legislature to replace around 60 per cent of the last insured salary (benefit objective under BVG).
  • The 3rd Pillar is divided into Tied Pension Provision (Pillar 3a, tax-privileged) and Unrestricted Provision (Pillar 3b).
  • Since 2026, the AHV old-age pension has been paid out thirteen times per year. The maximum old-age pension is 2'520 francs per month, the minimum 1'260 francs; for married couples, the combined total of both individual pensions is capped at 3'780 francs (source: BSV, as of 2026).
  • The 2nd Pillar is compulsory from an annual salary of 22'680 francs. The Coordination Deduction is 26'460 francs, the minimum coordinated salary is 3'780 francs, and the upper limit of the annual salary is 90'720 francs (source: BSV, as of 2026).
  • In Pillar 3a, a maximum of 7'258 francs is deductible from taxable income in 2026 for those affiliated with a pension institution, and 36'288 francs for those without such affiliation (source: BSV, as of 2026).

Frequently asked questions

The model combines three levels: the AHV as state basic provision (pay-as-you-go), the pension fund as employment-linked supplement (funded), and private provision. Only the interaction of all three pillars enables income security in retirement that approximates an accustomed standard of living.
The maximum AHV old-age pension is 2'520 francs per month, the minimum 1'260 francs. Since 2026, it has been paid out thirteen times per year. For married couples, the combined total of both individual pensions is capped at 3'780 francs per month. The amount of an individual's own pension depends on the contribution years and the relevant average income (source: BSV, as of 2026).
Compulsory occupational pension applies from an annual salary of 22'680 francs. The Coordination Deduction of 26'460 francs is subtracted from the salary; the remaining coordinated salary is insured, subject to a minimum of 3'780 francs. The annual salary is taken into account up to the upper limit of 90'720 francs (source: BSV, as of 2026).

Part of the topic

Vorsorge & Pensionierung

Sources: Bundesamt für Sozialversicherungen (BSV) · Systematische Rechtssammlung (fedlex)