Pension & Retirement

The first pillar (OASI/DI) is compulsory and covers basic needs in old age. The second pillar (pension fund, OPA) is compulsory for employees above a minimum salary and supplements the OASI. The third pillar is voluntary and private. Together they are intended to maintain the accustomed standard of living.

When you change employer, your previous pension fund transfers the accumulated retirement savings to the pension provision institution of your new employer. If no new fund takes over, the savings are transferred to a vested benefits account or custody account, where they remain tied until you re-enter an occupational pension scheme or make a withdrawal.

Both options have advantages and disadvantages. A pension provides a lifelong, predictable income; a lump sum offers greater flexibility and can be passed on to heirs, but is taxed as a one-off payment. A combination is often possible. The right choice depends on your health, assets, and family circumstances. Tax treatment may change.

The earlier you start, the more room for manoeuvre you have: voluntary buy-ins to a pension fund, Pillar 3a contributions, and staggered capital withdrawals all take effect over years. A full review of your pension situation around ten to fifteen years before retirement gives you time to identify and close any gaps.

Two changes. In December 2026, a 13th OASI old-age pension will be paid for the first time, as a supplement to the December pension and amounting to one twelfth of all monthly pensions drawn in 2026. Its financing is only partly settled: in June 2026 parliament adopted an increase in VAT of 0.4 percentage points from 2028, which is subject to a popular vote on 29 November 2026. Second, survivors' and disability pensions under the mandatory occupational scheme running since 2022 were adjusted to inflation for the first time in January 2026, by 2.7%. The OASI old-age pensions themselves remained unchanged.