Swiss pensions drop 16% for new retirees, VZ barometer finds

Anyone looking to retire in Switzerland over the next few years is set to receive around 16,4 percent less in pension payouts compared to retirees from over 20 years ago, according to the VZ Retirement Barometer 2026.

Pensions down by over 12.000 francs per year since 2002

People living and working in Switzerland likely share one common goal: retiring into a stable, care-free life strolling by the lakes and enjoying the mountain views. Yet despite the rising cost of living, pensioners in the alpine nation are now retiring with around 12.260 Swiss francs less per year than they would have 24 years ago.

This drop in pension payments is “often no longer sufficient to maintain people’s previous standard of living,” according to blue News.

For example, in 2026, a 55-year-old with a yearly income of 120.000 Swiss francs who plans to retire at 65 will receive roughly 62.660 francs a year. In 2002, the equivalent pension amount was higher at 74.920 francs.

The declining overall payment is attributed by blue News to a “sharp decline in benefits from the second pillar”, i.e. occupational pension funds (Pensionskassen), while the state-backed AHV pension is actually on the rise.

Declining trust in the Swiss pension system

However, the way Swiss residents view the pension system is also shifting. Trust in the state pension has declined when compared to 2025, with only around 25 percent of people surveyed by VZ believing that “AHV pensions will be secure in twenty years.” 

Confidence in the second pillar pension, on the other hand, is up slightly, but still only 30 percent believe that the second-pillar benefits will provide stability in the long-term.

The pension system in Switzerland is made up of three pillars. The Old-Age and Survivors Insurance (OASI) pension is overseen by the government and made up of various contributions. The Swiss Occupational Pension Fund (BVG/Pensionskassen) is funded by employee and employer contributions, and the third pillar is for private, individual pension contributions