Pensions for the self-employed in Switzerland: What you need to know
There are a number of options for self-employed people in Switzerland who want to take matters into their own hands. There is no standard solution. If you don’t take care of your pension, you risk noticeable pension gaps in old age. Moreover, it’s important to be aware of the various options, to study them in detail and to make provision for old age at an early stage.
How does the Swiss 3-pillar system work?
The Swiss pension system is based on three pillars: state, occupational and private pensions. The aim of this pension system is to provide financial security in old age and in the event of disability or death.
More information on the Swiss three-pillar system
- Pillar 1 (state pension): Includes old-age and survivors’ insurance (OASI), disability insurance (DI), and supplementary benefits (SB). It serves to secure a standard of living and is mandatory for everyone
- Pillar 2 (occupational benefits insurance): Occupational benefits insurance (OPA) is voluntary for the self-employed and mandatory for employees, and is the responsibility of the employer. Together with Pillar 1, it was originally intended to amount to around 60% of a person’s last salary to enable them to maintain their accustomed standard of living after retirement. As this is no longer realistic in most cases these days, private pension provision has greatly increased in significance.
- Pillar 3 (private pension provision): Pillar 3 is a voluntary and flexible addition to state and occupational benefits insurance. It enables you to close any pension gaps and strengthen your financial security in old age in line with your needs.
What pension solutions are available for the self-employed in Switzerland?
As a general rule, self-employed persons also have access to all three pillars for their retirement provision. However, their situation is different from that of employees. This is because joining a Pillar 2 pension fund is voluntary for the self-employed, and when it comes to private pension provision through Pillar 3a, they have further options as to the maximum amount.
Since the mandatory Pillar 1 only covers the subsistence minimum, it is extremely important to consider the voluntary pension options as a self-employed person. This is all the more true if you still have to cover your family.
Self-employed persons can combine occupational and private pensions and supplement them sensibly. There is no general rule about which solution makes the most sense for your personal situation. We will be happy to help you choose the right pension solution for you. Request personal advice now.
Please note: Although Pillar 1 is compulsory, self-employed persons must register themselves with the compensation office in the canton where their company is based. This doesn’t happen automatically.
What pension options are available to the self-employed under Pillar 2?
For the self-employed, a distinction must be made between the following options for joining a pension fund voluntarily.
For the self-employed with no employees
Self-employed persons with no employees have three options for joining a pension fund voluntarily:
- Association solution: Numerous professional and industry associations have their own pension funds that the self-employed can join.
- Substitute Occupational Benefit Institution LOB: Acting on behalf of the federal government, this foundation insures all self-employed persons wishing to join, but only with the statutory minimum benefits.
- AXA solution: AXA offers the self-employed its own OPA solution with comprehensive benefits and needs-oriented options that can be tailored to individual needs and budgets.
For the self-employed with employees
As soon as you have any employees who reach the OPA entry threshold, you are required to join a pension fund. As an employer, you can usually join the same pension fund solution voluntarily.
Important: If you set up a GmbH or AG and have a salary paid out as a result, you are technically considered to be an employee of your own company – even if there are no other employees. This means that there is an obligation to report: You must join a pension fund.
What are the advantages of Pillar 2?
The advantages of Pillar 2 for the self-employed lie in tax-deductible savings contributions, the opportunity to increase retirement assets in a targeted manner by making additional purchases, and benefiting from free professional asset management.
When you join a pension fund voluntarily, you make pension fund savings contributions based on your salary . You can deduct the contributions deducted from your salary from your taxable income. You can also deduct the “employer portion,” i.e. the portion that you would pay for your staff as a business owner, as business expenses. In addition to making regular savings contributions, you can further increase your retirement assets and save on taxes with voluntary pension fund buy-ins.
You don’t have to worry about the investment strategy for your retirement assets, because the pension fund takes care of it all.
When you retire, you have various options to withdraw the retirement assets you have saved. As a lump sum, a lifelong pension or a combination of the two.
You can also insure the risks of death and occupational disability. This is particularly useful for self-employed persons who have a family. Thanks to an exemption from contributions in the event of incapacity to work, the pension fund continues to finance the contributions, which avoids gaps in your retirement provision.
What pension options are available to the self-employed under Pillar 3a?
Like employees, self-employed persons can also make contributions into Pillar 3a. However, self-employed persons who are not enrolled in a pension fund have a much higher maximum amount they can pay in than those who are enrolled in a pension fund. You can pay in 20% of your earned income up to a maximum of CHF 36,288 each year (as of 2026). You can deduct these contributions in full from your taxable income, which could save you several thousand francs in taxes.
Under Pillar 3a, there are various investment models. Depending on your own risk tolerance, you can also invest the saved capital with securities solutions in addition to the classic savings account, for example.
When you retire, the Pillar 3a assets you have saved will be paid out as a lump sum.
With an insurance solution (pension policy) or a pension plan, it is also possible to insure yourself against the risks of occupational disability and death. Depending on your insurance model, you can also choose the option of exempting yourself from premiums in the event of occupational disability. This way your savings targets remain unchanged.
What is the best pension provision for the self-employed?
There is no universal answer. There is no pension solution that is right for everyone. The best pension provision depends on your personal situation – the type of company you have, your income, stage of life, risk tolerance and family situation. This is precisely why it is crucial for the self-employed not to plan their retirement provision in isolation, but to take a holistic view, constantly review it and adjust it over time.
In order to make the right decision, you should consider the following questions in particular:
- How do I register with the Substitute Occupational Benefit Institution LOB (Pillar 1)?
- Does voluntary enrollment in a pension fund make sense for me or is it actually mandatory for me?
- Am I eligible to make regular payments into Pillar 3a?
- Does it make sense to combine voluntary enrollment in a pension fund with regular payments into Pillar 3a?
- How can I adequately protect myself in the event of an accident, long-term disability or death?
Our tip: review your personal situation early. You can work with an advisor to determine whether Pillar 2, Pillar 3a, or a combination of the two makes sense for you and how you can effectively avoid risks. Contact us for a personal consultation.
Written by:
Sara Amati
Sara Amati is a Content Manager at AXA and researches interesting content for you on the subjects of insurance and pensions.
