Retirement provision for students: What you should know

Retirement provision sounds like a dream of the future for students. But if you start making provision early, you have more financial freedom later on. This article shows what students need to know about OASI, pension funds and Pillar 3a and why now is the best time to make provision for old age.

Why should students worry about their retirement provision?

Even though retirement is a long way off, it’s worth making provision for exactly this time right now. There are three reasons for this:

1. Studying leaves gaps in pension provision: if you’re not gainfully employed or work only to a limited extent due to part-time work or student jobs, you pay less into your OPA and pension fund. These gaps will be more difficult to close in the future and will have a direct impact on pension levels.
2. Compound interest rewards early investors: the earlier students start to make provision, the longer the money they have saved will work. Even small amounts develop into a financial cushion over decades.
3. You can save on taxes with retirement provision: every payment into Pillar 3a can be deducted from taxable income. If you work while you’re studying, you can make provision and reduce your tax burden at the same time.

When does a student become subject to OASI?

Gainfully employed students are subject to OASI from January 1 following their 17th birthday. OASI contributions are automatically deducted by your employer.

Students who are not gainfully employed are subject to OASI from January 1 following their 20th birthday. If you’re not working, you have to register with your cantonal compensation office and pay in a minimum amount of CHF 541 per year (as of 2027).

Each person is responsible for registering in order to avoid any contribution gaps. Every missing contribution year can result in a lifelong reduction in the OASI retirement pension.

When are you insured in the pension fund as a student?

Students are insured in the pension fund from January 1 following their 17th birthday as soon as their annual salary subject to OASI exceeds the threshold of CHF 23,040 (as of 2027). Employers register employees directly. An active step is therefore not necessary.

Important note for all young students who reach this threshold thanks to part-time jobs: up to the age of 25, the pension fund covers only death and disability, but not old age. This means that pension fund contributions are only credited to your pension from January 1 following your 24th birthday.

When can students start paying into Pillar 3a?

Anyone whose income is subject to OASI (annual income of more than CHF 2,500) can pay into Pillar 3a from January 1 following their 17th birthday. There is no minimum amount that can be paid in.

The maximum amount for 2026 is:

• CHF 7,258 for those with a pension fund of
• up to CHF 36,288 (20% of net earned income) for those without a pension fund

The following has applied since the start of 2026: if you do not make full use of the maximum amount in a year, you can make retroactive payments to plug the gap, provided that you first paid in the maximum amount in full in the current year.

When should students start considering retirement provision?

As early as possible, ideally as soon as they receive income subject to OASI. This can be a vacation or part-time job, at the earliest from January 1 after their 17th birthday.

The earlier you pay into your retirement provision, the longer the capital has to grow. On top of that, payments into Pillar 3 can be deducted from taxes, even if savings for lower earners are initially small. The advantage of Pillar 3a is that there is no minimum amount. It also makes sense to pay in CHF 300 or CHF 500 per year, and you can increase it as soon as your income increases.

This way, you can complete your studies without a major pension gap and start professional life on a more solid financial footing.

What is the best retirement provision option for students?

As soon as students are subject to OASI, Pillar 3a is the most sensible first step in retirement provision. It is flexible, tax-deductible, and can also be paid in retroactively since the start of 2026.

Those who open Pillar 3a at a young age have a long investment horizon ahead of them, typically 40 years or more, during which students can benefit from compound interest.

In addition to retirement provision, students should also consider the risk of occupational disability. Those who are not affiliated to a pension fund are generally not entitled to disability benefits from Pillar 2. If you lose your earned income due to accident or illness, this can have serious financial consequences. Hedging this risk at an early stage can therefore be just as important as accumulating assets for old age.

What steps do I need to take into account when it comes to retirement provision for students?

Step 1: clarify and ensure OASI obligation

If you’re not gainfully employed, you must register with the responsible cantonal compensation office from January 1 following your 20th birthday. The minimum contribution of CHF 541 (as of 2027) per year applies regardless of income. In the case of part-time jobs, you should check on your salary slips that OASI contributions are correctly deducted.

Step 2: check pension fund status

Anyone with a job earning an annual salary of over CHF 23,040 (as of 2027) is automatically insured in the pension fund. Here too, it’s worth checking your salary statement.

Step 3: open a Pillar 3a account

A 3a account can be opened as soon as there is income subject to OASI. Even for smaller amounts, it’s worth paying in monthly so that they’re not forgotten. As soon as your income allows, you should definitely pay in the maximum amount.

Step 4: deduct payments on your tax return

Payments into Pillar 3a must be actively recorded on your tax return. They are not automatically taken into account. With a small income, the immediate savings are small, but the long-term tax advantage when paid out in retirement is substantial.

Step 5: check regularly

Check annually to see whether the contributions correspond to your current income, and gradually increase the 3a amount when you enter the world of work if possible.

Pillar 3b comprises flexible pension provision and already plays an important role for students. These include, for example, bank deposits, savings accounts, securities or other assets that are available at all times.

Unlike Pillar 3a, your flexible pension money is not tied up and can be used flexibly in the event of unexpected expenses, during your studies or when starting your career. This is precisely why it makes sense to start by building up financial reserves for everyday life and unforeseen events.

Pillars 3a and 3b complement each other: While Pillar 3a offers tax advantages and long-term capital accumulation, flexible pensions provide the necessary flexibility.

It’s worth discussing your own financial situation with an expert early on and planning your personal pension strategy.

Frequently asked questions