Teamwork makes the pension dream work

Closing this gap is a matter for politicians. But couples don’t have to wait for reform. Even with current legislation, the gap can be narrowed significantly if both parties see retirement provision as a shared task. After all, every contribution year you lose is one year less compound interest, too. If one partner reduces their workload for family, couples can offset the gap in a targeted manner, for example by making contributions to the reducing partner from the joint budget.

The impact of part-time work

Reducing your workload to 60%. results in a literal collapse in retirement provision. The reason for this is the fixed co-ordination deduction, as shown in the calculation example on the right.

Reduce the pension gap as a couple

• You should both have a pillar 3a account, if possible. The prerequisite for this is income earned subject to AHV/AVS contributions.
• Check gaps on AHV/AVS account statement. Every missing year reduces your pension by about 2.3%.
• Choose your workload carefully. A moderate part-time position above the entry threshold will keep 2nd pillar insurance intact.
• If you hold more than one small part-time position, check voluntary insurance to see if the total wages exceed the entry threshold.
• Make voluntary purchases into partner’s pension fund, as these are tax-deductible.
• For AHV/AVS salaries above 136,080 Swiss francs, check out 1e pension plans.
• The following applies to cohabiting couples: In the 2nd pillar, the automatic entitlement to survivors’ benefits is waived, unless it is stated in the regulations and the partnership has been reported to the pension fund. Both are worth checking.