Unfortunately, this is not true. The state pension (first pillar) is intended to secure a minimum income level – both in the event that you lose your job, and also in the event that you become dependent on disability insurance benefits due to an accident or illness, as well as for the period after retirement. After all, retirement planning is not just about preparing for old age, but also about protecting yourself and your family in the event of life-changing events.
Occupational pension plans (second pillar) provide additional benefits through the pension fund and accident insurance, both in old age and in the event of accident, illness or death. However, benefits from the first and second pillars often cover only 60–70% of your previous income. This means you will not be able to continue your current standard of living after retirement.
To maintain the lifestyle to which you are accustomed in old age and to enjoy your time after retirement, 3rd-pillar pension payments are therefore indispensable. Learn more in the article “4 reasons for private retirement planning”.