Retirement saving for self-employed people in Switzerland

I live in Switzerland and have recently become self-employed. What are my options for retirement saving?

Hi there,

As a self-employed individual earning an income high enough to be eligible for social security contributions, you have a number of retirement saving options.

Pillar 1a - social security: You are obligated to make contributions to the old-age insurance scheme operated by your canton of residence. The contributions you make to social security are tax deductible. A basic social security pension is paid out from the time you reach legal retirement age until your death.

Pillar 2b - voluntary pension fund: As a self-employed person you are not obligated to contribute to an occupational pension fund. However, you can voluntarily join certain occupational pension funds which cater to self-employed individuals. The Substitute Occupational Benefit Institution and Agrisano Prevos offer occupational pension funds for self-employed individuals. Savings can only be withdrawn a maximum of 7 years ahead of legal retirement age.

Pillar 3a - limited private retirement savings: As a self employed person, you can contribute a substantial amount of money to 3a accounts, insurance policies and other solutions on a tax-deductible basis. 3a savings can only be withdrawn a maximum of 5 years ahead of legal retirement age. You can use the 3a retirement savings accounts comparison on moneyland.ch to compare interest rates.

Pillar 3b - unlimited private retirement savings: Unlike 3a savings, assets contributed to 3b retirement savings are not tax-deductible. However, 3b solutions provide a lot of flexibility because there are no limits on the amount you can save and you do not have to wait until you reach retirement age to withdraw you assets (although withdrawing assets after retirement can be beneficial from a tax perspective).

Best regards from Moneyguru