Retirement provision is based on three pillars in Switzerland:

• The first pillar is the state old-age and surviving dependants insurance pension. Old-age and surviving dependants insurance is based on the pay-as-you-go system: the generation that is economically active today finances the pensions of those who are currently retired.
• The second pillar is employee benefits. These are savings for yourself paid into a pension fund. However, the respective pension fund decides how the capital is invested.
• The third pillar with the fixed pillar 3a and flexible pillar 3b is private retirement planning. You pay into these plans on a voluntary basis. Each individual makes their own decision about whether to invest and how much.