The Swiss pension system is built on three essential pillars, one of which is the 2nd pillar or OPA (Occupational Pension Act). This pillar complements the 1st pillar (OASI) to ensure a sufficient income in retirement, while also providing coverage in case of disability or death. This article will explain how the 2nd pillar works, its advantages, and how to withdraw it.
The 2nd Pillar complements the benefits of the 1st Pillar (OASI) and allows the insured to maintain a standard of living of around 60% of their last salary. Contributions are mandatory for employees with an annual income of at least CHF 22,050 (as of 2024), with equal parts paid by both employer and employee.
Unlike the 1st Pillar, the 2nd Pillar operates as an individual savings plan. Contributions are age-based and fund multiple benefits:
| Age | Contribution Rate |
|---|---|
| 25-34 | 7% |
| 35-44 | 10% |
| 45-54 | 15% |
| 55-65 | 18% |
Note: Some companies offer higher rates, providing greater security for retirement.
At the retirement age (65 for everyone by 2028), the accumulated 2nd Pillar capital is converted into a pension. This amount depends on the contributions made, interest earned, and the conversion rate, which is currently set at 6.8% for the mandatory portion.
The 2nd Pillar can be withdrawn under specific conditions, called “vested benefits” cases:
For cross-border workers, repatriating funds with ibani allows you to avoid the high fees typically associated with traditional or online banks. Try the calculation tool below.
The 2nd Pillar can fund the purchase of a primary residence, and proof of sale must be provided to the pension fund.
Individuals starting a business can withdraw their 2nd Pillar savings, subject to providing evidence of self-employment.
Cross-border or expatriate workers leaving Switzerland can withdraw their 2nd Pillar savings. For EU/EFTA residents, only the extra-mandatory portion is immediately available, with the mandatory portion kept in a Swiss account for retirement.
The 2nd Pillar also covers disability and death risks, with beneficiaries including:
The Swiss 2nd Pillar, or OPA, is essential for ensuring financial security in retirement. Whether for retirement, a real estate project, or leaving Switzerland, it offers flexibility. Cross-border workers can repatriate funds via ibani, avoiding typical bank fees.
Each year, you receive a pension certificate showing the balance in your 2nd Pillar.
Yes, it is automatically transferred to your new employer's pension fund or a vested benefits account if you pause work.
Your 2nd Pillar funds transfer to a vested benefits account, where they remain accessible until eligibility is restored.
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