The Swiss three-pillar system
The three-pillar system: a simple explanation
The purpose of the Swiss pension system with its three pillars is to ensure financial security for people in Switzerland in their old age, in the event of disability and in death cases.
Pillar 1 – AHV/DI/EO
The purpose of the first pillar is to secure people’s livelihood in old age, in case of disability (including occupational disability) or following a death.
Pillar 2 – occupational benefits insurance
The second pillar includes occupational benefits insurance, occupational accident insurance, daily sickness benefits insurance and the vested benefits institutions. The second pillar aims to enable people to maintain their accustomed standard of living after retirement.