Your Pensionskasse: What You Really Need to Know in Your 30s and 40s
Understanding your Pensionskasse statement, BVG reform 2026, voluntary top-ups, job changes and tax benefits – everything about the 2nd pillar for Swiss employees in the wealth-building phase.
Coordination deduction, conversion rate, vested benefits – the first look at a Pensionskasse statement (Swiss occupational pension fund certificate) overwhelms almost everyone. Yet the years between 30 and 45 are exactly when the most important decisions for your retirement are made.
What is the 2nd pillar?
Switzerland's pension system rests on three pillars:
- 1st pillar (AHV): state basic coverage
- 2nd pillar (BVG/Pensionskasse): occupational pension through your employer
- 3rd pillar: voluntary private savings (e.g. Pillar 3a)
The 2nd pillar becomes compulsory once your annual income exceeds CHF 22'680 (2026 figure).
How your retirement savings grow
Annual savings credits (Altersgutschriften) increase with age:
| Age | Savings credit rate |
|---|---|
| 25–34 | 7% |
| 35–44 | 10% |
| 45–54 | 15% |
| 55–65 | 18% |
Example: With an annual income of CHF 90'000 at age 37, around CHF 6'427 flows into your Pensionskasse per year – split equally between you and your employer.
Understanding your Pensionskasse statement
Key figures to know:
- Retirement savings (Altersguthaben): the amount accumulated so far
- Conversion rate (Umwandlungssatz): currently at least 6.8% for the mandatory portion
- Vested benefits (Freizügigkeitsleistung): the amount that moves with you when you change jobs
- Insured salary (versicherter Lohn): the coordinated salary portion after deductions
The BVG reform 2026
Two current changes that affect you:
- BVG contributions now start from age 20 (previously 25)
- The coordination deduction is now 20% of salary (previously a flat CHF 25'725)
For part-time workers and lower earners, this means noticeably higher retirement savings.
Voluntary top-ups – the most valuable tip
If you have a top-up gap (Einkaufslücke) – for example after a job change, a period abroad, or a salary increase – you can make voluntary contributions and deduct the full amount from your taxable income.
Example: CHF 10'000 top-up × 28% marginal tax rate = CHF 2'800 in tax savings
Important: After making a top-up, you cannot withdraw capital for three years. Plan your top-up timing carefully.
Job changes and your Pensionskasse
Your vested benefits are normally transferred automatically to the new Pensionskasse. It's still worth checking actively – otherwise the money ends up at the BVG safety net (Auffangeinrichtung) with a very low interest rate.
At your new employer, it's worth checking:
- Conversion rate for the extra-mandatory portion
- Insurance benefits (disability, death)
- Funding ratio of the pension fund
- Investment strategy
Self-employed people and the Pensionskasse
If you're self-employed, you have three options:
- Voluntary membership in the BVG safety net fund
- Membership in an industry-specific Pensionskasse
- Pillar 3a with up to CHF 35'280 per year (2026)
Your annual 30-minute check
Once a year is enough:
- Review how your retirement savings have developed
- Check for a top-up gap
- Verify your insured salary
What you can do now
Pull out your current Pensionskasse certificate and look at the key figures. Check whether you have a top-up gap – and whether a voluntary contribution might make sense for you this year.