Marriage or cohabitation: What are the advantages of the two models?

Whether marriage or cohabitation is financially more advantageous in Switzerland depends on several factors, especially tax, OASI, and death benefits. While cohabiting couples currently still have advantages in terms of tax and OASI, married couples are better protected in the event of death. But which model offers more advantages overall: marriage or cohabitation? AXA-ARAG provides a clear summary of the key differences.

AXA-ARAG Legal Protection Insurance saw a 15 percent increase in queries about the subject of partnerships compared to the previous year. "We've noticed that the subject is more topical than before. We're often asked whether it's worth it financially to get married," says Tamara Bozinovic-Brons, a lawyer for AXA-ARAG. Customers are aware mostly of the "marriage tax penalty", i.e. the fact that married couples often pay higher taxes than unmarried ones due to tax progression. "However, unlike cohabitation, marriage has other advantages and disadvantages, with financial consequences that are less discussed," says Tamara Bozinovic-Brons.

OASI and tax: What are the differences between cohabitation and marriage?

In Switzerland, cohabiting couples are often better off financially than married couples when it comes to OASI and tax. Unmarried couples are entitled to the maximum OASI pension of up to CHF 32,760 per person, i.e. together they receive up to CHF 65,520 p.a. For married couples however, the total of both individual pensions cannot exceed 150 percent of the maximum pension for single people. Getting married therefore reduces the maximum annual OASI pension to CHF 49,140 – and spouses lose up to CHF 16,380 a year.

From a tax perspective, cohabiting couples often benefit as they are assessed separately and the progression is less ("marriage penalty"). With the introduction of individual taxation from 2026, this disadvantage will be gradually reduced, but should remain until full implementation in 2032.

Good to know: At first glance, a cohabitation agreement may seem contradictory to the rather non-binding nature of cohabitation, but it becomes all the more important if you want to protect yourself. It helps to avoid conflicts in the event of separation and also serves as proof of your partnership – for pension institutions, for example.

Death: Who is better protected – marriage or cohabitation?

However, if a spouse dies, married couples are better protected in terms of retirement provision in Pillars 1, 2 and 3. 

Pillar 1 (OASI)

The surviving spouse receives survivors’ benefits from Pillar 1. Cohabiting couples are left empty-handed and cannot benefit each other in Pillar 1 through a will either. 

Pillar 2 (pension fund)

The surviving spouse receives a survivor’s pension or at least a lump-sum settlement from Pillar 2. "Unmarried couples may benefit each other through a will, but it depends on the respective pension fund regulations as to whether benefits can be drawn," says Tamara Bozinovic-Brons. Being a beneficiary in this situation may be linked to certain conditions, for example the partners must have been in a joint household for five years. 

Pillar 3 (private pension provision)

Pillar 3 also requires steps to be taken. 

• In Pillar 3a, the surviving spouses are normally the main beneficiaries, whereas in the case of cohabitation, the assets are divided between the surviving partner and the descendants, unless the deceased has determined a different order of precedence. Furthermore, in Pillar 3a, the statutory provisions must be taken into account when nominating the beneficiaries.   

• but under Pillar 3b, beneficiaries can be freely chosen, subject to the compulsory portions.  

Death and inheritance: What advantages do married people have?

Unlike cohabiting couples, there is a legal inheritance entitlement. In other words, unmarried couples must benefit each other in their wills, otherwise they'll be left with nothing. Here the statutory compulsory portions must be observed. While the situation can be improved for unmarried couples with regard to inheritance by taking steps, there are still disadvantages when it comes to inheritance tax that cannot be changed through a will. In most cantons, cohabiting couples are actually subject to inheritance and gift tax, whereas married couples are essentially exempt. However, the tax burden differs from canton to canton. 

Regardless of the way of life you ultimately opt for, it’s important for you to know your personal pension situation and to protect each other as a cohabiting couple, whereby our Checklist on Cohabitation offers you good orientation.

You can also find more information about cohabitation in our blog post These laws apply to cohabitation.

Conclusion: Marriage or cohabitation?

There is no general answer as to whether marriage or cohabitation offers more advantages: while cohabitation is especially financially more attractive in terms of tax and OASI, marriage scores particularly in terms of death protection and inheritance law. It’s therefore crucial for couples to be aware of the differences and consciously protect their personal situation, regardless of which model they choose.