Your Pensionskasse: What You Really Need to Know in Your 30s and 40s

Coordination deduction, conversion rate, vested benefits – the first look at a Pensionskasse statement overwhelms almost everyone. Yet the years between 30 and 45 are exactly when you set the right course for your retirement. In this guide we take you through your 2nd pillar step by step – with concrete figures for 2026 and the levers that genuinely make a difference.

What is the 2nd pillar?

Switzerland's pension system rests on three pillars:

• 1st pillar (AHV): state basic coverage, covers the subsistence minimum
• 2nd pillar (BVG/Pensionskasse): occupational pension through your employer
• 3rd pillar: voluntary private savings (e.g. Pillar 3a)

Together, the AHV and the Pensionskasse are meant to cover around 60% of your final salary. That sounds like a lot – but often it isn't, especially if you want to maintain your usual standard of living. That's exactly why it pays to understand the 2nd pillar early.

Occupational pension coverage becomes compulsory as soon as your annual income exceeds the entry threshold of CHF 22'680 (2026 figure). If you earn less than that – for example with a small part-time job – you are not automatically insured.

How your retirement savings grow

Your balance in the Pensionskasse grows through what are known as savings credits (Altersgutschriften). These are annual contributions as a percentage of your coordinated salary – and they increase with age:

The key word is coordinated. It is not your entire salary that is insured, but only the part above the coordination deduction. In 2026 this deduction is CHF 26'460, and it ensures that the AHV and the Pensionskasse don't both cover the same portion of your salary twice.

Example: You are 37 and earn CHF 90'000 gross.

• Coordinated salary: CHF 90'000 − CHF 26'460 = CHF 63'540
• Savings credit at age 37 (10%): CHF 63'540 × 10% = CHF 6'354 per year

This amount is shared between employee and employer – at least half each. So your employer adds at least as much again on top of what you contribute. That's free money for your retirement that many people underestimate.

Mandatory and extra-mandatory coverage

Occupational pensions have two levels:

• Mandatory (Obligatorium): prescribed by law, up to a coordinated salary of at most CHF 64'260 (2026). Here a guaranteed minimum conversion rate of 6.8% applies.
• Extra-mandatory (Überobligatorium): everything your fund insures beyond that. Here the fund has more freedom – the conversion rate on the extra-mandatory portion is often lower.

The conversion rate determines how much pension you receive later per CHF 100'000 of retirement savings: 6.8% means CHF 6'800 of pension per year, for life. If you earn well, it's worth looking at how your fund handles the mandatory and extra-mandatory portions.

Understanding your Pensionskasse statement

Once a year you receive your Pensionskasse statement. These are the figures you really should 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 (coordinated) salary: the portion of salary after the coordination deduction
• Top-up potential (Einkaufspotenzial): how much you would be allowed to pay in voluntarily (more on this shortly)

The BVG reform: what actually applies in 2026

You may hear about a planned BVG reform. Important: the "BVG 21" reform was clearly rejected by Swiss voters on 22 September 2024, with around 67% voting no. Proposals such as a lower entry threshold, a coordination deduction as a percentage of salary, or a lower conversion rate are therefore not in force.

For 2026, the familiar rules still apply to you: a BVG entry threshold of CHF 22'680, a coordination deduction of CHF 26'460, and a minimum conversion rate of 6.8% in the mandatory portion. The need for reform remains – a new attempt is being discussed politically but has not yet been decided. So don't let yourself be unsettled by headlines that present changes as already in force.

Buying into the Pensionskasse – is it worth it?

This is the most valuable lever in the entire 2nd pillar. If you have a top-up gap (Einkaufslücke) – for example after a job change, a period abroad, a salary increase or a career break – you can make voluntary contributions and deduct the full amount from your taxable income.

Worked example: You have a top-up gap of CHF 30'000 and a marginal tax rate of 30%.

• Top-up CHF 30'000 × 30% marginal tax rate = CHF 9'000 in tax savings
• On top of that: the money you pay in earns interest in the fund and strengthens your later pension.

A top-up is especially worthwhile when your income is high (high marginal tax rate) and you don't need the money before retirement. Tip: spread larger top-ups over several years ("staggering") – this breaks the tax progression and lets you claim the maximum deduction each year.

Two pitfalls:

• After a top-up, you cannot draw a lump-sum benefit for three years (otherwise the tax office recalculates retroactively). So don't plan top-ups shortly before a planned lump-sum withdrawal.
• Check your fund's financial health (funding ratio) before paying in large amounts.

Whether a top-up makes sense for you is something you can roughly play through using our Pillar 3a guide as a comparison and the retirement calculator below.

Job changes and vested benefits

When you change jobs, your vested benefits are normally transferred automatically to the new Pensionskasse. Even so, it's 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 looking at:

• Conversion rate for the extra-mandatory portion
• Insurance benefits in the event of disability and death
• Funding ratio of the fund
• Investment strategy (if your fund offers 1e plans)

If you have a gap between two jobs or go abroad, your savings move to a vested benefits account. Here too the rule applies: actively choose a good provider rather than simply letting it run.

Self-employed people and the Pensionskasse

If you're self-employed, you are not compulsorily covered by the 2nd pillar. You have three options:

1. Voluntary membership in the BVG safety net fund
2. Membership in an industry-specific Pensionskasse
3. Pillar 3a with up to CHF 36'288 per year (2026) – that's 20% of your earned income if you are not affiliated with a Pensionskasse

For many self-employed people, the large Pillar 3a is the simplest and most flexible way to save for retirement in a tax-advantaged way.

Your annual check in 30 minutes

Once a year is enough. Take your Pensionskasse statement in hand and go through these three points:

1. Check how your savings are developing – are they growing as expected?
2. Review your top-up potential – is a voluntary top-up worthwhile this year?
3. Verify your insured salary and risk benefits – is everything correct after any salary changes?

Frequently asked questions about the Pensionskasse

What is the coordination deduction?

The coordination deduction (2026: CHF 26'460) is the portion of salary that is already covered by the AHV and is therefore not insured again by the Pensionskasse. Only the coordinated salary is insured, i.e. gross salary minus the coordination deduction.

Is a Pensionskasse top-up worth it?

Usually yes, if you have a high marginal tax rate and don't need the money before retirement. The tax saving corresponds to your marginal tax rate applied to the top-up amount. Note the three-year blocking period for lump-sum withdrawals after a top-up.

What happens to my Pensionskasse when I change jobs?

Your vested benefits are transferred to the new Pensionskasse. If you temporarily have no employer, the money moves to a vested benefits account. Actively check that nothing gets "forgotten" at the safety net fund with its low interest rate.

How high is the conversion rate in 2026?

In the mandatory portion, the statutory minimum conversion rate remains 6.8%. In the extra-mandatory portion, your fund may apply a lower rate. The rejected BVG reform would have wanted to cut the mandatory rate to 6.0% – this is not in force.

Your next step

Take your current Pensionskasse statement in hand and look at the key figures. Check whether you have a top-up gap – and whether a voluntary top-up suits you this year. With the retirement calculator below, you can see in just a few minutes where you stand today and what will add up by the time you retire.