How the Swiss pension system works
Retirement income in Switzerland rests on three pillars. The 1st pillar, AHV, is a pay-as-you-go state pension whose amount depends on your average income and your contribution years. A full pension needs 44 years without gaps; in 2026 it ranges from CHF 1,260 to CHF 2,520 a month, and from December 2026 a 13th AHV pension is paid once a year. For married couples the two pensions together are capped at CHF 3,780 a month. The reference age is 65 (slightly lower for women born 1961–1963); you can draw the AHV between 63 and 70 with a lifelong reduction or supplement.
The 2nd pillar (BVG, pension fund) is compulsory from an annual salary of CHF 22,680. Age credits of 7 % to 18 % of the coordinated salary (salary up to CHF 90,720 minus CHF 26,460) earn at least the legal minimum interest (1.25% in 2026, 2% from 2027) and are converted into a pension at 6.8 % at 65 on the mandatory part. Many pension funds credit more interest but apply a lower conversion rate to the whole balance, so the figures on your pension certificate are the best input.
Pillar 3a is voluntary: in 2026 you can pay in up to CHF 7,258 a year if you have a pension fund (20 % of net earned income, at most CHF 36,288, without one) and deduct it in full from taxable income. The calculator adds AHV, BVG and your savings, compares the total with your target share of your last salary and shows how much to put into pillar 3a and other savings each month to close the gap.
The net pension is shown after federal, cantonal and communal income tax: AHV and pension-fund annuities are fully taxable, while pillar 3a capital is taxed once, separately and at a reduced rate.