What if you are concerned that your twilight years are not financially secure despite two pensions?

Retirement benefits

You will receive a 1st pillar pension from the AHV as soon as you reach retirement age. You are generally also entitled to a pension or, optionally, to a one-off capital payment (lump sum payment) from the 2nd pillar or pension fund.


The payment in the form of a pension secures you a lifelong, guaranteed pension. The motto here is security over flexibility.


  • You have no investment risk.
  • You can enjoy a lifelong pension payment.


  • 100% of the pension is taxable.
  • Financial flexibility is limited (you may not have sufficient capital for a larger purchase in the short term).
  • Substitute income is lower than the final salary.
  • The AHV pension for married couples is a maximum of 150% of the maximum AHV/IV pension for individuals.

One-off lump sum payment

If you draw BVG capital, you will dispose of the funds immediately and will be able to use them as you wish. The motto here is flexibility over security. 

The advantages

  • You have the power to dispose of your pension at any time.
  • You can include your BVG funds in your will.


  • You must invest the money and therefore face certain investment risks or, currently, very low interest rates. 

Please note the following

Early planning 

  • Start planning the financial aspects of your retirement in good time. If you do not have sufficient assets at the age of 40 to 45, you should start the savings process now. This is necessary in order to retire early, for example.
  • You should really consider at an early stage whether you wish to have a recurring pension or a one-off capital payment from the pension fund. Take into account your pension fund's rules when you do.

Retirement in accordance with the law

  • Based on the statutory minimum payments, if your annual salary is CHF 84,600, you can expect a replacement income in retirement of around 60%. Higher payments are also possible, depending on the pension fund. Any shortfalls that may arise (i.e. if you receive much less from your pension than your previous salary) may be made up as part of the 3rd pillar.

Early retirement

  • AHV pensions may be drawn two years early at most. Of course the result is reduced benefits. This means men can draw the AHV pension at 63 at the earliest, women at 62.
  • Depending on the regulations, your pension fund's pensions may be drawn up to five years in advance. However, you can expect a pension reduction of around 7% to 8% per year. Therefore if you, as a man, draw your pension at 60, this will reduce your pension by a painful 35% to 40%. These missing funds (capital or pension) must be saved in another way.