We can help you with your private pension arrangements
Bank Sarasin provides you with all the support you need in arranging your pension provision. With our expert advice, you can plan for the times ahead and have an active influence on your future financial situation.
What does the future hold for pension benefits in Switzerland?
So far, the Swiss pensions system has been strong enough to meet the demands placed on it but there are two problems that present a serious challenge to its immediate future: The dramatic shift in the age structure of the Swiss population and the early retirement. Retiring early from one's job before reaching the official retirement age specified for the First or Second Pillar is increasingly becoming the norm. This means that the
| First Pillar (AHV/IV) | designed to guarantee a basic level of subsistence in old age, will be stretched to the limit in future as far as the funding of these benefits is concerned. |
| Second Pillar (pension fund) | designed to maintain the accustomed standard of living, will become increasingly more important as a form of provision of benefits. |
| Third Pillar | which provides tax-privileged restricted and unrestricted provisions of benefits, will increasingly be employed to cover gaps in pension provisions. |
How to prevent gaps in benefit provisions
Benefits payable on retirement under the First and Second Pillar often only amount to 60% of the final salary you earn. If there are any gaps in your pension contributions or you decide to take early retirement, the shortfall may be even greater. This has important repercussions on the Third Pillar: additional pension provision taken out by the private individual is becoming increasingly more essential. The capital invested, plus any returns earned on it, will have to make up the shortfall in pensions at least in part.
