Swiss Social Security: Savings Record and AVS Fears (cross-border guide)

Context

In brief

• Raiffeisen Barometer: pension conditions at all-time highs
• Current value: 725 points out of 1000, increasing compared to 2018
• 79% of respondents have a pillar 3a
• Fears for the future of the AVS: 39% of respondents are concerned

Key facts

Institute: Raiffeisen Barometer and ZHAW Current value: 725 points 2018 value: 587 points Pillar 3a share: 79% AVS concern: 39% Survey sample: over 1000 people (aged 18-65)

The Raiffeisen barometer, produced in collaboration with the Zurich University of Applied Sciences (ZHAW), indicates that the Swiss pension system has seen further improvement. The data show that the economic conditions of the pension systems have reached all-time highs, with a value of 725 points out of a maximum of 1000. This figure represents an increase of 28 points compared to the previous year and a significant jump when compared to the 587 points recorded in the first edition in 2018.

The drivers of pension growth

According to Jürg Portmann, co-head of the Risk & Insurance institute at ZHAW, this result is the product of two main factors: the excellent financial health of pension funds and a greater propensity for saving among the population. The improvement overall affects all three pillars of Swiss social security. Tashi Gumbatshang, an executive at Raiffeisen, confirmed that the current level is the highest ever recorded since the research began.

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Operational details

Supplementary pension analysis

The analysis of the barometer shows a clear change in personal saving habits. The share of people using a 3a pillar to supplement their old age has reached 79%, setting a new record. This trend indicates a greater awareness of the need to integrate the annuities of the first two pillars to maintain the standard of living after retirement.

The Impact of New Deposit Rules

An element of great interest for residents in Switzerland is the introduction, scheduled for the beginning of 2026, of the possibility of filling the contribution gaps in segment 3a afterwards. Jürg Portmann suggests that this novelty may provide a further boost to private saving. However, the current data show a gap between knowledge of the standard and its practical application: while 63% of the sample knows the new rule, only 5% actually made a supplementary payment.

This scenario suggests that many taxpayers may not have planned the operation yet or do not fully understand the tax and social security advantage. The potential for the recovery of the gaps therefore remains very broad for the active population. Those who have not regularly paid into the third pillar in past years may find this an opportunity to increase their retirement capital.

The Challenge of Early Retirement

The desire to leave

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Strategies for pension integration

For those living and working in Switzerland, the current scenario described by the Raiffeisen barometer suggests the importance of active planning. Since 39% of the population fears for the sustainability of the AVS, the use of complementary tools becomes essential to mitigate future risks and ensure an adequate pension.

Steps to optimize savings

To correctly manage your pension, you can follow these operational steps:

• Gap analysis: verify the contributions paid into the first and second pillars to identify any missing years.
• Third pillar planning: since 79% of respondents already use pillar 3a, it is advisable to compare different savings solutions to maximize returns.
• Evaluation of contribution recovery: looking ahead to the beginning of 2026, prepare the necessary liquidity to fill gaps in the 3a segment, considering that only 5% have done so far.
• Study of work flexibility: evaluate the possibility of part-time work in the final stages of the career, an option considered feasible by two-thirds of the sample to compensate for the difficulty of early retirement.

Support tools

Pension management requires precise calculations, especially when evaluating the impact of conversion rates or the need for supplementary payments. For those who wish to have a clearer idea of their financial situation and how contributions affect net salary and future pension, simulation tools are useful.

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