What are retirement assets?
Retirement assets in your pension fund are made up of saved yearly contributions made by yourself and your employer, voluntary deposits, and interest payments.
📄 Where to find your retirement assets
You can find the value of your current retirement assets on the pension fund statement (Vorsorgeausweis / Certificat de prévoyance) sent by your pension fund. This is typically sent annually.
You can ask for your statement at any time by speaking with your pension plan provider or your employer.
How the second pillar works
The BVG compulsory scheme applies to all workers already covered by the first pillar and who earn at least CHF 22,050 annually (2024 threshold). Obligatory insurance cover begins once you start working, at the earliest after you reach 17 years of age.
Initially, until you reach the age of 24, the contributions only cover risks of death and disability. From the age of 25, contributions will additionally be saved into your pension.
Employers and employees are required to contribute. Contributions are directly deducted from your wages.
How your pension is calculated
Pension payments in the second pillar are based on individual savings. These begin at 25, and end once you reach retirement age. The existing capital is put through a calculation factor (conversion rate) and turned into an annual pension.
The size of the pension payment depends on the saved retirement assets — the savings contributions that are paid in over the course of one's working life.
📋 Example
In the course of your working life, you have saved a total of CHF 400,000. The conversion rate is 6.8%.
Your lifelong pension from this pension plan would equal:
CHF 400,000 × 6.8% = CHF 27,200 per year
That's CHF 2,267 per month.
Contribution rates by age
The savings contribution rates increase with age, reflecting the shorter time remaining until retirement:
| Age | Savings Rate |
|---|---|
| 25–34 | 7% |
| 35–44 | 10% |
| 45–54 | 15% |
| 55–64/65 | 18% |
These are the BVG minimum rates. Many pension funds offer higher rates.
Capital vs. pension
Depending on the pension fund and regulations, a part or the total pension payment may be received as a capital payment rather than in the form of a pension. The pension is calculated using a "conversion rate". The size of the conversion rate can be found in the pension fund's agreement.
Voluntary buy-in (Einkauf)
Most pension plans allow for voluntary additional contributions beyond the state minimum. These buy-ins are tax-deductible and can significantly increase your retirement capital. However, they are subject to a three-year retention period.