Switzerland’s pension system ranks 7th in Europe and 11th globally

Switzerland’s pension system has been ranked the 7th best in Europe and 11th globally, according to the latest Global Pension Index, with the Netherlands retaining the top spot worldwide.

The Netherlands tops global pension ranking for 4th year running

The Netherlands has been awarded the title of the best pension system in the world in 2026, with a score of 85,8 out of 100 in the 2026 Marsh CFA Institute Global Pension Index.

The ranking assessed 55 retirement income systems covering around 66 percent of the world's population. Denmark came second with 84,1 points, followed by Iceland with 84,0.

Singapore (82,0), Israel (81,9) and Australia (80,6) completed the six countries awarded an A grade, the highest classification. Australia entered the top category this year.

The annual study evaluates pension systems in three areas: adequacy (how well pensions support people in retirement); sustainability (their ability to keep paying benefits) and integrity (including governance and protections for members).

Swiss pension system receives a B score

Switzerland’s retirement system earned a B grade in 2026 with a score of 73,60 out of 100, ranking as the 11th best pension system globally and 7th among countries in Europe. This is a slight improvement on last year’s score of 72,4, largely due to “an increase in minimum pension as a proportion of wage and net placement rates.”

The Swiss pension system comprises of three pillars: a state pension (Pillar 1/OASI), a mandatory occupational pension (Pillar 2) and voluntary private pension plans (Pillar 3a).

The Global Pension Index accredited Switzerland’s system as having a “strong minimum level of support for the poorest older individuals”, as well as extensive occupational pension coverage and a high level of pension assets as a percentage of GDP.

However, the authors noted that the country’s score could increase if the government raised the state pension age over time in line with rising life expectancy, required retirement benefits as an income stream, increased communication and transparency, addressed high levels of household debt and reduced costs in the system by consolidating the Swiss pension fund market.

What does this mean for internationals in Switzerland?

A high-ranking pension system does not automatically mean that expats living in Switzerland at retirement age will receive a full Swiss pension.

The Swiss state pension (Pillar 1) requires 44 continuous years of contributions in order to receive the full amount. Missing years will result in reduced payments, usually around 2,3 percent per missing year. Residents can get a pension estimate via ahv-iv.ch.

Of course, internationals working in Switzerland for a number of years will also build up a company pension fund (Pillar 2), including any voluntary buy-ins, and can also choose to contribute to the tax-benefitting private pension scheme (Pillar 3a).

Parts of this article originally featured on IamExpat the Netherlands.