{"id":34108,"date":"2024-06-06T10:37:20","date_gmt":"2024-06-06T08:37:20","guid":{"rendered":"https:\/\/fidulex.ch\/?p=34108"},"modified":"2024-07-25T13:30:12","modified_gmt":"2024-07-25T11:30:12","slug":"etirement-age-in-switzerland-issues-and-trends","status":"publish","type":"post","link":"https:\/\/fidulex.ch\/en\/etirement-age-in-switzerland-issues-and-trends\/","title":{"rendered":"Switzerland's Retirement Age: Challenges and Developments"},"content":{"rendered":"
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"Switzerland's\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

The Swiss Pension System<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

In Switzerland, the pension system is divided into 3 pillars<\/strong>which allow retirees to keep a equivalent standard of living<\/strong> or at least similar to the one he had while working.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

The 1st Pillar<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

The 1st<\/sup> pillar, known by the abbreviation AVS (Assurance Vieillesse et Survivants), is compulsory. Every Swiss worker contributes to the AVS until the age of 65.<\/strong>for both men and women.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

The 2nd Pillar<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

The 2nd<\/sup> pillar, also known as BVG (Occupational Pensions Act)<\/strong> is added to the 1st<\/sup> pillar to top it up. Contributions are then shared ; you and your employer<\/a> <\/strong>; you both contribute together to build up your 2nd<\/sup> pillar. BVG\/LPP is only compulsory for salaries in excess of CHF 22,050 per year.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

The 3rd Pillar<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

The 3nd<\/sup> pillar is optional. It consists of tied personal pension plans (Pillar 3a) and unrestricted personal pension plans (Pillar 3b).<\/strong> It's up to each worker to feed it according to his or her desires and means. These two pillars each have their advantages and disadvantages.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

Pillar 3a<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

This pillar is advantageous from from a tax point of view<\/strong> because you can deduct your contributions from your tax return. However, you should also bear in mind that contributions to this pillar are limited. You can contribute a maximum of 7056 CHF<\/strong> every year if you are an employee. If you are self-employed without 2nd<\/sup> pillar, you are also limited to 3CHF 5,280<\/strong> per year.<\/p>

Please note that if you wish to withdraw your 3nd<\/sup> pillar, you will have to pay tax on what you have contributed over the years.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

Pillar 3b<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Pillar 3b, on the other hand, is not limited like pillar 3a, but often does not generate the same income as pillar 3a. no tax benefits<\/strong>. Unlike Pillar 3a, if you decide to withdraw it, you won't have to pay tax.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t