What are the three pillars for?
Swiss insurance covers three major risks: retirement, disability and death. It is based on three complementary levels: the 1st public pillar, the 2nd professional pillar and the 3rd private pillar.
The first two pillars are essential, but they are not always enough to maintain your standard of living. For many households, self-employed people, families and owners, the 3rd pillar becomes the main lever for securing the future.
1st pillar: AVS, AI and basic benefits
The 1st pillar is state welfare. It includes AVS, AI and additional benefits. Its objective is to cover vital needs in the event of retirement, disability or death.
It is compulsory for people domiciled or working in Switzerland. Pensions depend in particular on the years of contributions, average income and family situation. An interruption of activity, a late arrival in Switzerland or years without contributions can create gaps.
2nd pillar: LPP and pension fund
The 2nd pillar completes the AVS/AI. It aims, with the 1st pillar, to maintain a significant part of the previous standard of living. In 2026, compulsory LPP affiliation in principle concerns employees subject to AVS who earn more than CHF 22,680 per year from an employer.
Cover generally begins for death and disability risks from January 1 following the 17th birthday, then old age savings from January 1 following the 24th birthday. Self-employed people are not always automatically affiliated and must analyze their protection carefully.
3rd pillar: private pension 3a and 3b
The 3rd pillar is optional. It is used to supplement retirement, optimize taxation, protect loved ones or finance a project such as housing. It exists in banking, investment or insurance form.
- Pillar 3a: linked pension plan, tax deductible, reserved for people with income subject to AVS. In 2026, the ceiling is CHF 7,258 with pension fund, or 20% of net income up to CHF 36,288 without 2nd pillar.
- Pillar 3b: free insurance, more flexible for payments, withdrawals, duration and beneficiaries. It generally does not offer the same federal tax deduction, but can be very useful for pass-through or flexible projects.
- Life insurance: allows you to add death protection, earning incapacity or release of premiums in addition to savings.
Why do gaps appear?
A pension gap appears when the expected benefits are not enough to cover your lifestyle or your expenses. It can come from part-time work, divorce, a period abroad, unpaid leave, a change of status, a high salary not entirely covered by the LPP or self-employment.
The first two pillars often cover only part of the final income. The higher your income, your family expenses or your mortgage, the more important it is to check early what would be missing in the event of retirement, disability or death.
Important decisions to make
- Should we favor a 3a bank, a 3a in funds or a 3a insurance?
- How much should you pay each year to reduce taxes without tying up too much cash?
- Is it necessary to supplement death or incapacity to earn coverage?
- Does your pension fund allow attractive LPP redemptions?
- How to organize several 3a accounts to stagger withdrawals in retirement?
- Is pillar 3b useful for a partner, a self-employed person or an inheritance strategy?
What changes in 2026
The 3a 2026 ceilings are CHF 7,258 for people affiliated to a pension fund and a maximum of CHF 36,288 for people without a 2nd pillar, within the limit of 20% of net income. Since 2026, a retroactive 3a buyback has become possible to fill certain gaps that appeared from 2025, under conditions.
The 13th AVS pension is also planned for recipients of old age pensions from December 2026. These developments reinforce the importance of an up-to-date pension plan, because tax, social and retirement rules have a direct impact on your planning.
Our support
Finwise analyzes your three pillars, reads your LPP certificate, estimates your gaps and helps you choose between 3a banking, 3a insurance, pillar 3b, death insurance, life insurance or LPP redemption. The objective is not to accumulate products, but to build a plan consistent with your income, your family, your taxes and your projects.
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