Retirement provision in Switzerland is based on three pillars. The system is deliberately designed so that one single pension does not have to cover everything: the state provides the foundation, the pension fund helps maintain your standard of living, and private provision helps you close gaps and stay flexible.
1) The three pillars at a glance
1st pillar: State provision (OASI (AHV) / DI / loss of earnings compensation)
Objective: cover basic living costs. This pillar is intended to prevent people from facing financial hardship in old age or in the event of disability.
2nd pillar: Occupational provision (OPA / pension fund)
Objective: together with the OASI pension, help ensure an adequate standard of living after retirement. For most employees, it is mandatory depending on salary.
3rd pillar: Private provision (pillar 3a and 3b)
Objective: achieve personal goals and close pension gaps.
- Pillar 3a (restricted): tax-advantaged, but subject to restrictions.
- Pillar 3b (unrestricted): very flexible, with no fixed contribution limit.
2) OASI explained simply: who pays contributions?
OASI is financed through contributions. Different rules apply depending on whether you are gainfully employed or not. This matters because missing contribution years can later reduce your pension.
2.1 When do you have to start paying OASI contributions?
If you are gainfully employed: You must start paying contributions from 1 January after your 17th birthday.
If you are not gainfully employed: You must start paying contributions from 1 January after your 20th birthday until you reach the pension age.
Rule of thumb:
- With a job: contribution obligation starts at “18” (calendar year after turning 17)
- Without a job: contribution obligation starts at “21” (calendar year after turning 20)
2.2 How much are OASI / DI / loss of earnings compensation contributions on salary?
For employees, total contributions amount to 10.6% of gross salary:
- 5.3% is paid by the employee
- 5.3% is paid by the employer
This is important because some rules explicitly take account of the total contribution, including the employer’s share.
2.3 Contribution years are crucial
To receive a “full” OASI pension, you need a complete contribution record. If years are missing, the pension is reduced.
Practical tip: an individual account extract from the compensation office shows whether all contribution years have been recorded correctly. It is a useful way to spot gaps early.
3) OASI and marriage: when does a non-working spouse not have to pay their own contributions?
This is highly relevant in practice, for example where one person stays at home, studies, or works only very little.
3.1 Basic rule
A person who is not gainfully employed must generally pay OASI / DI / loss of earnings compensation contributions.
3.2 Exception: exemption through the gainfully employed spouse
A non-working spouse does not have to pay their own contributions if the other spouse:
- is considered gainfully employed for OASI purposes, and
- pays at least double the minimum annual contribution in OASI / DI / loss of earnings compensation.
How much is double the minimum contribution?
- Minimum contribution (2026): CHF 530 per year
- Double minimum contribution (2026): CHF 1,060 per year
3.3 The key practical question: what annual salary is roughly needed for this?
This is not about a fixed salary rule, but about a simple calculation: for employees, OASI / DI / loss of earnings compensation contributions are calculated as a percentage of salary.
- Total contribution rate: 10.6%
- Target: at least CHF 1,060 in contributions per year
Rule of thumb for employees: CHF 1,060 ÷ 0.106 ≈ CHF 10,000 gross annual salary
Why does that often seem “too low”? Because many people mentally calculate only the employee share of 5.3%. For this exemption rule, however, the contribution logic includes the employer share as well. Also see the information guideline.
Two short examples
- Annual salary CHF 12,000: 12,000 × 10.6% = CHF 1,272 → exemption requirement met
- Annual salary CHF 8,000: 8,000 × 10.6% = CHF 848 → exemption requirement not met
3.4 Important practical notes
- For very small workloads, OASI may check whether a person is genuinely considered gainfully employed for OASI purposes.
- Different calculation scales apply to self-employed persons. The decisive point remains the same: at least CHF 1,060 per year must actually be paid so that the non-working spouse is exempt.
4) Minimum contribution for non-working persons (if you have to pay yourself)
If no exemption applies, the minimum is:
- Minimum contribution in 2026: CHF 530 per year
The actual amount can be higher, depending in particular on assets and certain forms of income.
5) The 2nd pillar in simple terms: who is insured in a pension fund?
Occupational provision is mandatory for many employees once annual salary reaches the threshold.
- Entry threshold 2026: CHF 22,680
- Coordination deduction 2026: CHF 26,460
- Upper annual salary limit 2026: CHF 90,720
Put simply, the pension fund does not insure your entire salary, but a coordinated salary. This is why part-time work or multiple jobs can create a pension gap. In practice, it is worth checking your pension fund certificate carefully.
6) Pillar 3a and 3b: close gaps and optimise taxes
Pillar 3a (restricted): The federal government sets the maximum annual contribution, which also corresponds to the maximum tax deduction.
For 2026:
- With a pension fund: max. CHF 7,258
- Without a pension fund: max. 20% of earned income, up to CHF 36,288
Pillar 3b (unrestricted):This includes everything you build up additionally for retirement outside the pillar 3a rules, for example securities, savings, or a property strategy. It is flexible, but without the standardised tax advantages of pillar 3a.
7) Quick checklist: how to get your pension planning in order
- Check your OASI contribution years with an individual account extract, especially after time off work or living abroad.
- If one spouse is not gainfully employed, check whether the CHF 1,060 per year threshold is being met.
- Review your pension fund: entry threshold, coordinated salary and possible buy-ins.
- Plan pillar 3a contributions regularly instead of leaving it to the end of the year.
Conclusion
At first glance, the three-pillar pension system may seem complex, but it is built on a clear logic: state provision as the foundation, occupational provision to help maintain your standard of living, and private provision as a flexible supplement. In practice, OASI contribution years and the spouse rule are especially important. A non-working person should make sure that the gainfully employed spouse actually pays at least CHF 1,060 in annual OASI / DI / loss of earnings compensation contributions, which for employees corresponds roughly to a gross annual salary of around CHF 10,000
