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Director's pension planning in Switzerland: the 3 pillars explained
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Director's pension planning in Switzerland: the 3 pillars explained

February 20, 20267 min read

The Swiss pension system is based on three complementary pillars. For a business director, understanding them well is essential.

1st pillar - AVS/AI

  • Mandatory for everyone
  • Maximum pension: CHF 2,450/month
  • Contributions shared between employer/employee

    • 2nd pillar - LPP

  • Mandatory from CHF 22,050 annual salary
  • Possibility of tax-deductible buy-backs
  • Choice of pension fund is important

    • 3rd pillar - Private pension

  • Pillar 3a: tax-deductible (max CHF 7,056/year)
  • Pillar 3b: life insurance, investments
  • Flexibility in investment choices

    • Optimal strategy

    A savvy director combines all three pillars to maximize coverage while optimizing tax burden.