Retirement provision is based on three pillars in Switzerland:
- The first pillar is the state old-age and surviving dependants insurance pension
- The second pillar is employee benefits – such as pension funds
- The third pillar is private retirement planning
While state and occupational pension provision is usually managed for you, private retirement planning is voluntary. That means you have to actively manage your private retirement planning yourself. Past experience shows that Swiss people generally require around 80% of their previous income during retirement. This amount cannot usually be covered by the first and second pillars alone.