Pensions for the self-employed: what do you really need?

Many people dream of ending their employee status to become self-employed – but are fearful of insecurity and financial bottlenecks. Don't be scared! Solid pension arrangements are also possible for the self-employed.

Congratulations! You've made the leap into self-employment and are starting your own business. You're full of enthusiasm and are highly motivated, but there are a lot of questions swirling around. Do you have enough start-up capital? Will my business idea work? And what if something happens to me?

In your situation, that is actually one of the most important questions. This is because as a business owner, you enjoy a great deal of freedom when it comes to pensions, but you also have a great deal of responsibility to bear for yourself and your family. You should therefore not leave anything to chance when it comes to protecting your income. 

Pensions for the self-employed - the basics 

Pillar 1 of the pension system (federal old-age and survivors’ insurance, disability insurance, loss of earnings compensation scheme and family allowances) is compulsory for everyone, but you have to register yourself. To do so, contact the cantonal compensation office where your company is based. 

Anything else is theoretically optional for you as a business owner, but there are definite recommendations. In terms of retirement provision and protection against long-term inability to work, Pillars 2 and/or 3 are imperative. Although daily benefits insurance and accident insurance are voluntary, they are a matter of course in Switzerland. The financial risk is too great should you have an accident or not be able to work for a long period due to illness.

Consult our self-employment page for an overview and further information on insurance options. Use the insurance check to find out in just three minutes which insurance types could be a good idea for your SME. 

How can self-employed people provide for their retirement? 

As a business owner, you are responsible for your own retirement provision. You should definitely join an OPA institution at your own instigation and/or make regular contributions into Pillar 3a or 3b, otherwise you risk facing a pension gap after retirement. AXA offers various pension solutions for companies and an attractive pension plan for private persons.

Do the self-employed need a pension fund (OPA)? 

Yes, unless they are switching their pension to Pillar 3a/3b entirely. Many owners of sole proprietorships, general or limited partnerships voluntarily join a pension foundation. Does your sector or industry association have its own pension fund perhaps? An alternative to this is always the OPA National Substitute Pension Plan Foundation. This non-profit organization is the only pension institution in Switzerland that provides benefits for all interested individuals on behalf of the federal government, but only the mandatory minimum. 

There's a special case: if you set up a company limited by shares (AG) or a limited liability company (GmbH), you’re considered to be an employee of your own firm for insurance purposes. Your pension fund assets must then be transferred into the new pension fund.

What are the advantages of Pillar 3a?

Build up capital: 

• If you don't belong to a pension fund, you're allowed to pay in up to 20 percent of your net earned income into Pillar 3a every year. The maximum amount currently stands at almost CHF 36,288 (as at 2025) which is five times the amount that pension fund members are allowed to pay in (CHF 7,258).
• Your purchases create capital for retirement provision or for inability to work. 
• As this is tied pension provision, there is no risk of the money being used for ongoing costs contrary to your intent. 

Save on taxes: 

• You can deduct any purchases from your taxable income in full, saving you several thousands in tax under certain circumstances. 
• Interest is paid on your Pillar 3a assets and this earned interest is tax-free.
• The assets saved in Pillar 3a are not subject to wealth tax. Tax only becomes due when the assets are paid out and this at a reduced rate.

Withdraw assets early: 

• Within the first year of you being self-employed, you can withdraw the money you have saved in Pillar 3a as start-up capital. Since partial withdrawal is not possible, it may make sense to have several 3a accounts. Tip: Pillar 2 also allows early withdrawal of your vested benefits if you become self-employed. 
• If you're dreaming of buying your own home or emigrating at some point, you are also allowed to withdraw your Pillar 3a assets to do so.
• You can use the saved funds at any time to make voluntary purchases in the pension fund (OPA). 

Protect your investments and safeguard against risks: 

• You yourself decide what best suits you and your needs:: a pension account (bank) or a pension policy (insurance company). Both have their advantages and disadvantages, but the main thing is that you begin saving for OASI retirement as early as possible. 
• Many private pension solutions include modules with return-oriented investments in the financial and equity markets.
• A pension policy or a pension plan allows you to insure against life risks such as disability or death.

Are you prepared for the future? 

Is your pension provision in tune with your needs, in respect of your professional life and retirement? Are you currently able to save for later? Weigh up the strengths and weaknesses of the various options and calmly consider what makes sense in your situation. Joining a pension fund? Making regular payments into a Pillar 3a account? Or is loss of earnings your greatest risk? Discuss your personal goals with a pension advisor. If you haven't yet found the pension solution that suits you best, we're here to support you. Contact us.