Independent: protections are not automatic
In Switzerland, the 1st AVS/AI pillar is compulsory, but it is generally not enough to maintain your standard of living. Unlike an employee, you are not automatically affiliated to a LPP pension fund and you do not benefit from an employer who maintains your salary in the event of illness.
Your pension plan must therefore cover three priorities: continuing to live if your income stops, preparing for retirement and protecting your loved ones if you die or become disabled.
Pillar 3a: the major tax lever
- Without LPP: you can contribute up to 20% of your net income, a maximum of CHF 36,288 in 2026.
- With optional LPP: the 3a ceiling falls to the employee amount, i.e. CHF 7,258 in 2026.
- Bank or fund: flexible solution, adapted to variable income and the search for long-term returns.
- Insurance 3a: useful if you want to include death, disability or premium waiver coverage.
Optional LPP: useful depending on income
A self-employed person can voluntarily join a pension fund, for example via a professional association, their employees' fund or the supplementary institution. This solution can improve old age, death and disability coverage, and open the door to tax-deductible purchases.
It is often interesting for high incomes, self-employed people with families or those who want a pension structure closer to an employee. However, it reduces the 3a ceiling, so the choice must be calculated before signing.
Loss of earnings: protect immediate income
The basic health insurance pays for care, but does not replace your income. In the event of illness, daily allowance insurance can pay a benefit after a chosen waiting period. This is often the most urgent coverage for freelancers, because personal and professional expenses continue even when you no longer bill.
For accidents, the LAA is not automatic for the self-employed. An optional LAA or private accident cover can avoid depending solely on the LAMal, which does not pay replacement salary.
Death, disability and family continuity
- Death insurance: protects the spouse, partner, children or the repayment of a mortgage.
- Incapacity to earn: pays an annuity if an illness or accident permanently reduces your ability to generate an income.
- Life insurance: can combine savings, protection and beneficiaries according to pillar 3a or 3b.
- Succession plan: particularly important if the business represents a significant part of the family assets.
Decisions to be made in the right order
- Check AVS contributions and avoid gap years.
- Determine the minimum income to be protected in the event of work stoppage.
- Choose between 3a alone, optional LPP or combination of the two.
- Insure health and accident risks before only optimizing retirement.
- Compare banking solutions, funds and insurance according to your real income.
- Adapt the plan after a birth, a mortgage, a change of benefit or a transformation into a Sàrl/SA.
Common errors
- Think that LAMal replaces income in the event of illness.
- Forget that voluntary LPP affiliation reduces the 3a ceiling.
- Under-insure income to save a premium while fixed charges remain high.
- Counting on the sale of the business as your only retirement.
- Signing long-term insurance without checking fees, flexibility and surrender value.
- Do not coordinate personal insurance and professional risks.
Our support
Finwise analyzes your status, your net income, your expenses, your family, your taxes and your risk tolerance. We compare 3a, optional LPP, loss of earnings, accident, death, disability and life insurance to build a coherent, scalable and financially sustainable solution.
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