Introduction

In Switzerland, every earner covered by OASI (AHV/AVS) can, in theory, rely on three pillars to build retirement security. Yet shrinking conversion rates, ongoing OASI reforms and a revival of inflation mean many people make choices that slash their future pension. Below we review three common missteps – late funding, skipping disability cover, ignoring inflation – and the practical fixes.

1. Putting off contributions – the price of time

Roughly 75 % of Swiss residents already hold a pillar-3a account, but averages hide big delays in opening and funding levels. The tax-deductible cap for 2025 is CHF 7,258.
Paying the maximum each year at a 3 % average return creates about CHF 336,000 in 30 years, but only CHF 190,000 in 20 years – a ten-year lag “costs” nearly CHF 150,000 in pension capital.

Action steps

  • Set up an automatic transfer to 3a right after payday.

  • Split savings across several 3a accounts to stagger withdrawals and ease tax brackets at retirement.

2. Overlooking disability cover – a real threat

Pocket statistics show 6 % of under-65s receive at least one DI benefit; 4 % draw a full disability pension. Without solid risk insurance in the second pillar, disability slashes income and stalls 3a payments.

Action steps

  • Check your pension fund statement for the share of salary insured against disability and death (part-time jobs often < 60 %).

  • Freelancers or multi-jobbers should consider top-up DI cover to plug gaps left by the pension fund.

3. Downplaying inflation – the silent enemy

Average inflation in 2024 was +1.1 %, the lowest since 2021 yet above the SNB price-stability target. At 1 % for 20 years, fixed pensions lose almost one-fifth of purchasing power.
Swiss pension funds returned an average 5.1 % in 2024 (Swisscanto study). Parking 3a assets in near-zero-yield accounts forfeits a return spread that could offset inflation long-term.

Action steps

  • Choose 3a funds with an equity share ≥ 40 % if you’re more than 10 years from retirement.

  • Review your second-pillar asset mix whenever the fund updates its investment policy.

Conclusion

Sound retirement planning means acting early, shielding against disability risk and earning returns that beat inflation. Ignoring even one lever can leave your pension short. Check your pension certificate and 3a balances today – small, timely tweaks beat expensive late fixes.

Key takeaways

  • Time: 10-year delay can cut capital by CHF 150 000.

  • DI risk: 6 % of under-65s draw benefits – get covered.

  • Inflation: returns > 3 % are vital to preserve buying power.