How to Read Your Swiss Pension Certificate

Why your pension fund money is your wealth

Almost half of the Swiss population doesn’t consider their pension fund assets to be their own wealth (Sotomo 2024). Yet for many of us, the 2nd pillar is one of the biggest assets we have.

Maybe it’s because this money feels so little like our own. It is deducted automatically from your salary every month, disappears into the pension fund, and doesn’t even show up as wealth on your tax return.

But this money is your money, and it pays to engage with it early. The current Fairplay survey by Sotomo shows that 47 percent of retirees regret at least one decision they made in their retirement planning. Around a third would have liked to pay into Pillar 3a earlier or contribute more.

What’s in your pension statement?

How much have you saved so far? What interest does your balance earn? What pension could come out of it one day? And what happens financially if you become disabled or die?

You’ll find the answers in your pension statement. Still, for many people it ends up in a drawer, or the email gets saved for later. It was the same for me for a long time. Today I look at my pension statement more closely once a year. There are five numbers you should know.

01

Insured salary and coordination deduction

Not your entire salary is insured. Often, a statutory coordination deduction of a maximum of CHF 26,460 (as of 2026) is subtracted first.

The statutory coordination deduction is always the same amount, whether you work part-time or full-time. However, many pension funds now offer more favorable solutions and reduce the deduction for part-time employees or abolish it entirely.

A lower coordination deduction means a higher insured salary and therefore more retirement capital. For part-time work in particular, it’s worth taking a close look, because the deduction weighs proportionally more.

Tip: We usually can’t choose our pension fund, but asking costs nothing. Check your pension statement to see what is being deducted. If it’s the full amount, ask your employer (HR or the pension fund itself) whether a reduced coordination deduction is possible.

02

Retirement assets

Your retirement assets are the capital you’ve saved so far. Your pension statement shows your current balance and usually also the projected retirement capital at a later point, such as at 58, 60 or 65. The earlier you know this number, the more transparency you have about your situation in the 2nd pillar. That way, you can spot any pension gaps and tackle them.

Also interesting: according to the ZKB pension fund study 2025/2026, fewer than a third of insured people know how their retirement assets are actually credited with interest. In 2025, the average real interest rate of the pension funds studied was a record-high 4.6 percent.

03

Conversion rate

The conversion rate determines how much annual pension you could later receive from your retirement assets, if you don’t take a lump-sum withdrawal. If the conversion rate is 5%, for example, you would receive a pension of CHF 5,000 per year for CHF 100,000 of capital.

The conversion rate changes over time, and mostly it falls. Your pension fund should inform you about any changes.

According to a Swisscanto study, the conversion rate is often not the main driver in the decision between pension and lump sum: only 17 percent of respondents cite it as a reason for taking the capital. In 2025, for the first time, 51 percent of retirement assets were withdrawn as capital

04

Projected retirement pension and capital

This number shows how high your pension could be at retirement and how much capital you will have saved up to a certain age, assuming your income stays as it is today. Knowing it helps you judge whether you can cover your standard of living with what you’ve saved.

This is where longevity comes in. Anyone retiring at 65 today has statistically around two more decades ahead of them, and women tend to have somewhat more (BFS). Retirement is no longer a short final phase of life. For many, it lasts 20, 25 or even 30 years.

05

Risk benefits for disability and death

How much do you or your family receive in the event of disability or death? This number is especially important if other people depend on you financially.

Depending on the pension plan, a waiting period of, for example, 360 or 720 days may apply before the pension fund’s disability pension starts. So also check what benefits are available during that time through your employer, daily sickness allowance insurance and the IV (disability insurance).

If you have children or elderly relatives who depend on you, taking out additional income protection insurance for a certain period may be worthwhile.

Switzerland is ageing: why the 2nd pillar matters more

Since 2025, for the first time, more people over 65 live in Switzerland than people under 20: around 1.8 million people belong to each of these two age groups (BFS). Living longer is good news for all of us, but it also raises big questions for retirement provision.

Your pension fund money is your money

Even if it may not feel that way, because the amount is deducted automatically every month, vanishes into the pension fund pot and isn’t listed as wealth on your tax return, the capital in your pension fund is your money. That is exactly why the pension statement and the five numbers above matter so much.

I also didn’t look after mine for a long time. Since I understood this, my pension statement no longer lies unopened in a drawer. I check it once a year, and I factor in how things like career changes or withdrawals for home ownership affect my pension fund when making decisions. It was only when I looked at the waiting periods for the disability pension and the rather modest figures for the orphan’s pension that I realized I needed to top things up with additional savings and insurance.

How do you handle your pension statement? Do you know the numbers of your pension fund? 💰

Frequently asked questions about the Swiss pension statement

What is a pension statement (Vorsorgeausweis)?
It is the document from your pension fund that shows your saved capital, your projected pension and the benefits you receive in case of disability or death.

How often should I check my pension statement?
A closer look once a year is enough. It’s also worth checking after a job change or a withdrawal for home ownership.

What is the coordination deduction?
It is the part of your salary that is not insured in the pension fund. The statutory maximum is CHF 26,460 in 2026. Many pension funds reduce it for part-time employees.

What does the conversion rate mean?
The conversion rate determines how much annual pension you receive from your retirement assets. At 5 percent, that is CHF 5,000 per year for CHF 100,000 of capital.

What can I do if I find a pension gap?
The earlier you know your numbers, the more options you have, such as additional payments into Pillar 3a or extra insurance cover.

Sources for further reading

*In german

Federal Statistical Office (BFS): Life expectancy / population statistics 2025 – bfs.admin.ch
Zürcher Kantonalbank: Pension fund study 2026 – zkb.ch/pensionskassenstudie-2026
Zürcher Kantonalbank: Press release “Spending, Investing or Bequeathing” – zkb.ch/medienmitteilungen
Swisscanto Pension fund study 2025 – swisscanto.com/pensionskassenstudie-2025
blue News: “BFS 2025: Switzerland has more people over 65 than under 20 for the first time” – bluewin.ch
Sotomo: Fairplay study “Finances and Security” 2025 – sotomo.ch/fairplay-studie-2025, full report (in German): PDF
SRF: “Pension fund assets: Uncertainty prevails in retirement provision” – srf.ch
Penso: “Population does not perceive pension fund capital as part of their wealth” – penso.ch
Vita: Fairplay study, summary – vita.ch/sotomo
Zurich Switzerland: Press release on the 4th Fairplay study, July 2024 – zurich.ch/medienmitteilung
Data: Federal Statistical Office, life expectancy and population statistics, published April 2026 (reference year 2025); Zürcher Kantonalbank, pension fund study 2025/2026; Swisscanto pension fund study 2025.

How to Read Your Swiss Pension Certificate: The 5 Key Numbers

Why your pension fund money is your wealth

What’s in your pension statement?