An apprenticeship or studies: what’s right for me?

Deciding whether to pursue an apprenticeship or studies after school will lay the foundation for your professional career. Both options have their advantages and disadvantages.

Apprenticeship: practicality plus early income

An apprenticeship is especially suited to practical individuals who want to make an early start in working life. In Switzerland, apprenticeships combine theoretical knowledge from vocational school with practical experiences within the apprenticeship company. In the space of two to four years, you gain a recognized qualification.

Advantages of an apprenticeship

• Early income: apprentices start earning a wage in their very first year, which is an initial step towards financial independence.
• Practicality: the practical part of the training takes place within the company, which gives apprentices an insight into the world of work and provides valuable professional experience.
• Good employment chances: many training companies take on their apprentices full time at the end of the apprenticeship and give them a solid start to their careers without the need for an arduous job search.
• A variety of experiences: depending on the course and training company, apprentices can become acquainted with different departments and areas of activity during their training. Brief stays abroad are also an option.

Disadvantages of an apprenticeship

• Early decision: unlike pupils who opt to remain in school, young people wishing to do an apprenticeship must decide on what direction to take a few years earlier. If they’re able to do so, students should try to get as many “tasters” as possible when choosing a career. In Switzerland, there are a number of ways to change career direction even after completing an apprenticeship.
• Typically lower salaries: in the long term, studies from the Swiss Federal Statistical Office show that apprentices without further education often earn less than their peers with a university degree.
• Prospects of promotion sometimes limited: without additional qualifications such as further training or a subsequent degree, it can prove difficult to move up the career ladder. However, this depends largely on the industry and company, as many companies also offer internal promotion prospects.
   

Income trends for apprenticeships

According to a study by the Swiss Federal Statistical Office (FSO) on income upon completing basic vocational training published at The link will open in a new window bfs.admin.ch, income depends heavily on the professional field chosen. Across all professional fields, the study indicates the following monthly median gross incomes five years after completion of an apprenticeship when in full-time employment:

• Apprenticeship graduates with a Federal VET Diploma: CHF 5,220
  
• Apprenticeship graduates with a Federal VET Diploma and higher vocational school leaving certificate (BM1): CHF 5,730

The higher income earned by individuals with a higher vocational school leaving certificate can primarily be explained by the fact that they are more likely to complete tertiary studies, such as at a University of Applied Sciences, than someone without a BM1.

In summary: an apprenticeship generally offers a solid start to working life with theoretical and practical knowledge as well as early income opportunities, which means it provides a steady foundation for a career.
 

Studies: academic training and later income

Studying is very popular in Switzerland. The number of students has grown steadily since 1995.

University is especially appealing to people who prefer a theoretical approach and who are interested in specialized, sometimes research-intense careers. A Bachelor’s degree generally lasts three years at Swiss universities, a subsequent Master’s degree around two. 

Advantages of studying

• Typically higher salaries: studies show that those with a university degree earn more in the long/medium-term than young people who have completed an apprenticeship without any further education at a tertiary level. However, education is only one of many salary criteria, and so not always the deciding factor.
• Career opportunities: university paves the way for careers in academia or in an international setting, for example.
• Flexibility: unlike an apprenticeship, which specializes in a certain vocational area from the outset, there are courses that provide students with the freedom to tailor their studies to their own personal interests, for instance by specializing in given areas.
• International experience: certain courses provide opportunities for spending time abroad, internships, or even completing an entire degree abroad.
   

Disadvantages of studying

• Late career start: some degree programmes last several years. This means individuals only make a start in working life later and are therefore potentially dependent on financial support for longer.
• Costs: tuition fees, books, rent and living costs can pose a financial challenge. However, it is possible to obtain scholarships in Switzerland. Depending on the degree programme, studies can be combined with a part-time role, ideally in a field offering practical insights into the world of work.
• Theoretical focus: studying at a university rarely offers much practical training, which is why additional internships are needed to gain professional experience. However, more and more companies offer specific trainee programmes for university graduates, who are then able to accumulate useful practical knowledge in a short space of time.

Income trends for students

At university, many students experience financial difficulties. According to an FSO study on income after obtaining an academic or vocational baccalaureate published at The link will open in a new window bfs.admin.ch, two thirds of students work in addition to studying, and only a minority benefit from scholarships.

After obtaining an academic baccalaureate, average income is only about 4,000 francs. Income does not rise significantly until the seventh year after obtaining a baccalaureate. Those who have completed tertiary education have an average annual salary of 74,600 francs nine years after obtaining their baccalaureate.

Specialization also plays a role: graduates in the field of education, economics and law earn higher income later on, whereas fields such as art & design and music are less lucrative.

In summary: university provides an in-depth, theoretical/academic form of training and occasionally offers a more flexible study plan, but it does mean financial sacrifices early on in a person’s career. The choice of degree programme is crucial.

An apprenticeship or studies? There are hybrid solutions, too!

A dual study programme could be the ideal solution for anyone struggling to choose between an apprenticeship and studying. This combination of practical training and academic study offers the benefits of both paths, but requires excellent organizational skills and stamina due to the double burden.

A Swiss success story: the dual education system

Switzerland is famous for its unique dual education system. Thanks to the flexibility it provides, young adults are not forced to choose between “starting work early or studying”. Instead, they have a variety of ways to shape their professional future. Young people who complete an apprenticeship are able to continue their training or change direction. This reduces the pressure on young people to choose a profession, given that all paths will essentially still be open later on.

Most of these training opportunities are geared towards working people, meaning they do not need to reduce their working hours by much, if at all.

Finances and training: five tips

Regardless of what you choose, good financial planning is essential.
These tips can help to finance training or studies:

1. Opening a student account: a student account designed especially for young people can help you to keep on top of your finances. It often comes with favourable conditions and exclusive benefits.
   Learn more about our free The link will open in a new window SmartStudents banking package.
2. Budgeting: setting a budget that takes incomings (e.g. salary, scholarship) and outgoings (e.g. rent, tuition fees) into account can help you to avoid financial difficulties. Find out more in our article “The link will open in a new window Get to grips with your fixed and variable costs – tips from FinanzFabio!”
3. Side job or support: if it proves necessary, taking up a side job alongside your studies can be of financial help, or, ideally, your parents/extended family could provide support. If this is not possible, there are various scholarships you can apply for in Switzerland.
4. Chance to build up assets through investments: an ETF saving plan can help you benefit from the capital market and long-term asset growth, even if you only invest small sums. Young people in particular can benefit from the compound interest effect. Your bank advisor will be happy to help you find the right product.
5. Start saving for retirement early on: pillar 3 allows you to start building up capital at a young age and to make the most of tax benefits. Even small contributions towards pillar 3 are worthwhile. These are tax-deductible payments that help you save up for later on in life.

Retirement planning: start looking forward ahead of time

In Switzerland, apprenticeships and studies differ when it comes to retirement planning, especially with pillars 1 and 2.

• Pillar 1 (OASI): upon receiving their first salary, apprentices start paying OASI contributions, allowing them to start accumulating pension entitlements straight away. Students, by contrast, only pay OASI contributions if they are also working alongside their studies, or if they are obliged to pay contributions from the age of 21.
• Pillar 2 (pension fund): as employees, apprentices are automatically included in their company’s pension fund, and they start retirement planning early in accordance with mandatory insurance for all employees. Students not in employment generally do not pay into a pension fund, which means that they start retirement planning later in life.
   

Watch out for pension gaps

Anyone not in work or only in a limited capacity for a long period of time – as may be the case during studies or in the event of part-time employment – risks having OASI and pension fund gaps, which can have a long-term effect on their total pension. This is why it is worth reviewing your pension situation on a regular basis and filling any gaps with extra payments or investments into pillar 3a.

Paving your own way to success

Whether you opt for an apprenticeship or studies, both paths offer good prospects if they match up with your own strengths and interests. Ultimately, your own personal interests, abilities and expectations are the crucial factors that will determine your future working life. In the end, sorting out financing early on will enable you to concentrate fully on your training or education.