DON’T MISS
IamExpat Job BoardIamExpat HousingIamExpat Webinars
Newsletters
EXPAT INFO
CAREER
HOUSING
EDUCATION
LIFESTYLE
EXPAT SERVICES
NEWS & ARTICLES
Home
Expat Info
Swiss news & articles
Pension reform in Switzerland: What expats need to know
Never miss a thing!Sign up for our weekly newsletters with important news stories, expat events and special offers.
Keep me updated with exclusive offers from partner companies
By signing up, you agree that we may process your information in accordance with our privacy policy

Pension reform in Switzerland: What expats need to know

Never miss a thing!Sign up for our weekly newsletters with important news stories, expat events and special offers.
Keep me updated with exclusive offers from partner companies
By signing up, you agree that we may process your information in accordance with our privacy policy
or
follow us for regular updates:



Related Stories

Could tips soon be taxed in Switzerland?Could tips soon be taxed in Switzerland?
Which Swiss canton will age the most in the next 30 years?Which Swiss canton will age the most in the next 30 years?
The latest reforms to Swiss pensions explainedThe latest reforms to Swiss pensions explained
Which jobs in Switzerland see the most early retirements?Which jobs in Switzerland see the most early retirements?
Expat guide to the Swiss parliament's spring session 2025Expat guide to the Swiss parliament's spring session 2025
Canton Zurich to be short of 83.000 workers by 2050, study revealsCanton Zurich to be short of 83.000 workers by 2050, study reveals
What are the top worries among people in Switzerland?What are the top worries among people in Switzerland?
Switzerland in 2025: Major changes you need to know aboutSwitzerland in 2025: Major changes you need to know about
For expats of all colours, shapes and sizes

Explore
Expat infoCareerHousingEducationLifestyleExpat servicesNews & articles
About us
IamExpat MediaAdvertisePost a jobContact usSitemap
More IamExpat
IamExpat Job BoardIamExpat HousingWebinarsNewsletters
Privacy
Terms of usePrivacy policyCookiesAvoiding scams

Never miss a thing!Sign up for expat events, news & offers, delivered once a week.
Keep me updated with exclusive offers from partner companies
By signing up, you agree that we may process your information in accordance with our privacy policy


© 2025 IamExpat Media B.V.
© 2025 IamExpat Media B.V.
May 2, 2022
Jan de Boer

Editor at IamExpat Media

Jan studied History at the University of York and Broadcast Journalism at the University of Sheffield. Though born in York, Jan has lived most of his life in Zurich and has worked as a journalist, writer and editor since 2016. While he has plunged head-first back into life in Switzerland since returning to the country in 2020, he still enjoys a taste of home at pub quizzes and karaoke nights.Read more

The Social Committee of the Council of States has confirmed its plan to reform pensions in Switzerland. The aim of the scheme is to make sure pensioners are guaranteed benefits in the future, as people live longer and fewer people enter the workforce.

Switzerland hopes to guarantee pensions for future generations

Like most countries in Europe, Switzerland is struggling to pay for its pension schemes. As more people retire, life expectancy increases and fewer young people begin work, there is concern that current pensions will become unaffordable in the future. Of particular concern is the second-pillar pension scheme - the pension system paid for by salaries and contributions from employers, where payouts are regulated by the state.

To combat the threat of insolvency in the second-pillar, the commission voted to change the so-called minimum conversion rate from 6,8 percent to 6 percent. This will coincide with raising the pension age for women to 65 years. 

The minimum conversion rate essentially determines how much your second-pillar pension will be. For example, a person with second-pillar retirement savings of 100.000 Swiss francs would receive 6.000 Swiss francs a year instead of 6.800 francs a year under the new scheme.

Pensioners in Switzerland compensated for loss of earnings

To compensate for the loss of earnings, people who take out pensions in the next 20 years with an annual income of less than 100.380 Swiss francs are to receive a supplement. This will start at 2.400 Swiss francs a year for the first five cohorts, then reduce every five years down to 600 Swiss francs by the end of the scheme. People with salaries over 143.400 Swiss francs a year will receive a reduced subsidy. In all, 90 percent of retirees over the next 20 years will benefit from the extra money.

According to pension association Asip, this compensation is unnecessary, as once the effect of the supplement is taken into account only 14 percent of the workforce will be financially worse off due to the change in conversion rate.

Government hopes new plan will stabilise Swiss pensions

The plan has received glowing support from politicians across the spectrum, who say the plan successfully compensates for the loss of earnings for pensioners by subsidising those affected. The government hopes that the new plan will force people to save up more money and build up savings accounts to become more self-sufficient. However, the plan has been criticised by trade unions, who argue that a focus on saving for retirement will leave working people worse off in the present. 

The social reform passed the committee almost unanimously, with only three abstentions. While the plan still has significant hurdles to overcome, including a referendum in November, Watson noted that this is one of the few moments where pension reform has the support of most major parties.

By Jan de Boer