How can I make sensible provisions as a woman?

Women in Switzerland get a third less pension than men and face twice the risk of old-age poverty. We explain why this gap exists – and how you can protect your financial future.
Nadine Jürgensen
From the very beginning, the Swiss pension system has not focused on the needs of women.

Why do women receive lower pensions?

Our pension system, designed in 1947, did not take women into account: the original draft of the state pension (AHV) didn’t even include pensions for women. The system was built for men working full-time, with uninterrupted careers and no unpaid care responsibilities at home. To this day, women’s life paths are largely overlooked—even though some adjustments have been made over time. In many ways, the system was designed by men, for men.

Nadine Jürgensen
«Anyone earning less than CHF 1,800 per month is excluded from the pension fund.»

How the pension system works

Today, the Swiss system has three pillars:
The first pillar is the state pension (AHV).
The second pillar is occupational pensions (pension fund).
The third pillar is private savings.

In theory, contributing to all three ensures financial security in retirement. The first pillar covers basic living costs.Your contributions are automatically deducted from your salary as long as you earn an income subject to AHV.

The second pillar aims to maintain your standard of living. Both you and your employer contribute—if you qualify.

Anyone earning less than CHF 1,800 per month is excluded from the pension fund. Low incomes are further reduced by the coordination deduction (see below). If mothers stop working to care for children, they are excluded from both the second and third pillars. If women perform unpaid care work and are not married, they may even have gaps in the first pillar (AHV), since coverage through a partner only applies in marriage.

Those who take on unpaid care work without legal or marital protection are taking a significant financial risk.

The third pillar is optional—an extra layer of savings. Contributions must be made privately.

Nadine Jürgensen
«Only about half of women in Switzerland even have a pension fund, compared to three-quarters of men.»

Why the state pension (AHV) benefits women

Despite historical disadvantages, women receive roughly similar pensions from the AHV—slightly higher on average (about +4%). This is because the system includes childcare and caregiving credits, counted as fictitious income.

The AHV also redistributes wealth—from young to old, rich to poor, and from men to women—but mainly within marriage. For example, a woman who never worked may still receive a pension through her husband.

The problem lies in occupational pensions

Access to pension funds is unequal: only about half of women have one, compared to three-quarters of men. The gender pension gap in the second pillar is between 60% and 67%.

Few people contribute to the third pillar: around 30% of men and only 15% of women. Men also accumulate significantly more—about twice as much. Many people start too late or cannot afford to contribute. Those without employment income are excluded altogether.

Nadine Jürgensen
«Many people think about retirement planning far too late—especially given how little women were considered in the system.»

Because the second and third pillars are tied to employment, women tend to end up with around one third less pension overall — the result of more frequent part-time work, lower earnings, and career breaks.

Start planning your pension now

Many people underestimate how career choices affect retirement. In one study, only 37% of women had considered the impact of part-time work or leaving their job on their pension.

What is the coordination deduction?

This deduction in the second pillar ensures coordination with the AHV. Since part of your income is already insured in the first pillar (CHF 25,725 annually), this amount is deducted from your gross salary when calculating the insured salary for the pension fund.

Example:
If your annual salary is CHF 60,000, the insured salary after deduction is CHF 34,275.

This fixed deduction disadvantages low incomes, as it significantly reduces the portion covered by the pension fund. For very low salaries, a minimum insured salary of CHF 3,675 applies.

Some employers adjust or remove this deduction for part-time work—so it’s worth asking.

How to secure your retirement

Women are best protected if they work at least 60–70% over their lifetime. Career breaks are possible, but long-term participation matters.

Marriage still offers legal protection: in case of divorce, pension assets are split equally. However, lifelong spousal support is no longer guaranteed. Financial independence remains essential.

If you work part-time, take breaks, or do unpaid care work, you should ensure additional protection—through marriage, a cohabitation agreement, or private compensation arrangements with your partner.

It’s also important to build assets outside the pension system—through investments, business ownership, or real estate.

Retirement planning checklist

  1. 1
    Try to maintain your financial independence : this doesn't mean you can never take a break from work, but plan any career interruptions with your future in mind. And start thinking about retirement provision sooner rather than later.
  2. 2
    Ensure a fair division of labor in your relationship: a balanced split of paid work, household duties, and caregiving allows both partners to build pension entitlements. Discuss expectations early—especially before having children—and put agreements in writing
  3. 3
    Check for gaps in your AHV contributions: regularly request your account statement to identify missing contribution years. You can make retroactive payments for up to five years.
  4. 4
    Pay AHV contributions as a homemaker: if you are married and your partner pays at least double the minimum contribution (CHF 1,028 per year), you are exempt. However, once your partner retires, you must contribute yourself if you are not yet retired.
  5. 5
    Reach the minimum income for pension fund coverage: ensure your annual income exceeds CHF 22,050 so your employer must insure you. If you have multiple part-time jobs, you may still qualify for coverage—for example via the BVG substitute institution.

The full checklist (25 points) is available in the ellexx app under Learn > Checklists.

Published: 5th August 2024Update: 15th September 2025

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