It is reassuring to know that you have enough of a financial cushion for your old age and that you and your loved ones will be financially secure. The Moser family, single Carlo, and couple Daniela and Tim are considering the things that are most important to them. 

Moser family: For the last four years, the main breadwinner in the four-person Moser household has been mother Joanna. She and her husband Leo want the family to have enough money in case something happens to either one of them or if someone is no longer able to work due to illness or an accident. For example, they calculate what it would mean if Joanna's salary were no longer paid in full, but also what it would cost to organize childcare externally. They also have another concern: the Mosers want to “live well” in their old age, despite current pension gaps, because Joanna did not work for a long time due to her maternity leave and a second degree, and Leo works part-time. 

Carlo: 30 years old, single. In his immediate circle of friends, he has seen what it means financially when you fall ill and are unable to work for a long time. He is determined to protect himself against this risk. At the same time, Carlo also wants to save on taxes and put money aside for later.

Daniela and Tim: The couple have been together for ten years. Daniela and Tim are both around forty, work a lot and have big plans: upon retirement, they want to spend half of the year at their Mediterranean holiday home. And Tim wants to ensure that Daniela can keep this house, even if something should happen to him. 

Why private retirement planning is so important

The Moser family, Carlo, Daniela and Tim live very different lives, but they have one thing in common. They have all recognized that they need to deal with the issue of private retirement planning (3rd pillar) themselves if they are to make adequate provision for their future and want to protect themselves and their relatives – for the following reasons:

Reason 1: Because pensions from the AHV and pension funds do not fully cover your needs in old age

As funds from the 1st and 2nd pillars are insufficient to maintain the standard of living you are used to in old age, private retirement planning in the 3rd pillar is becoming increasingly important. This is especially true if, as with Joanna and Leo Moser, you have spent longer periods out of full-time employment due to maternity leave, a second degree or part-time work, or also due to a stay abroad or a divorce. You can help to close the gaps by building up your finances via private retirement planning (3rd pillar). 

Reason 2: Because illness or accidents can also lead to loss of earnings

In working life, interruptions or gaps due to illness or an accident are unfortunately not unusual. This was Carlo's experience. After longer periods of absence from full-time employment, health issues can be compounded by financial problems. State (first pillar) and employee (second pillar) benefits are often not enough to compensate for the loss of earnings. Insurance against incapacity to work helps to close financial gaps in the event of illness or accident, so that financial obligations can also be met in the event of being unable to work. It can be taken out as part of the 3rd pillar as part of a flexible pension plan (3b) or tax-privileged fixed pension plan (3a). 

Reason 3: Because life insurance can at least alleviate financial worries

It's not something anyone likes to think about. But you actually owe it to your loved ones to ask yourself the following questions: “What would be the financial consequences of my death?”; “What resources would then be available to my loved ones to maintain their standard of living?”; “Would those funds be enough to enable them to have a good life?” The solution to these questions could be to take out a life insurance policy that takes into account the needs of your surviving dependants. In the event of your death, it would supplement state and employee pension benefits and make it possible to at least alleviate financial worries. Life insurance can be taken out via the 3rd pillar as part of a flexible pension plan (3b) or tax-privileged fixed pension plan (3a).

Reason 4: Because you can also save on taxes with private retirement planning

If you save or take out insurance as part of a fixed pension (pillar 3a) you can save on taxes because the premium can be deducted from your taxable income. The legally defined annual maximum for the deductible amounts for people affiliated with an occupational employee benefits institution via the second pillar is currently CHF 7,056 (as of 2023) and for employed persons with no such affiliation, it is up to 20% of their taxable net earned income (maximum CHF 35,280).

Our tax calculator shows you how much tax you can save with pillar 3a.

The pension solution to suit everyone’s circumstances

Various solutions are available to meet individual needs using private retirement planning. The SmartFlex pension plan life insurance savings product is particularly flexible: depending on their needs, the insuree can combine pension savings and cover themselves against incapacity to work and/or death in a single package. In addition, policy holders decide for themselves what proportion of their savings premium should earn fixed interest (secure assets subject to regulatory guarantee) or be invested in equity funds with a focus on returns (yield-oriented assets).