Protection: should gaps be filled before they grow?
Hello, Quentin here.
Yes: identifying and filling a retirement savings gap early can reduce the effort required and prevent it from having a greater impact on your financial security.
AHV and pension fund benefits are not always enough to maintain your desired standard of living in retirement. An irregular income, a period of part-time work or a career break can widen the gap without you noticing right away.
The right approach is to measure this gap before choosing a solution. Planning ahead gives you more room to adjust your savings, contributions and family protection.
Good habits to adopt
- Request an AHV individual account statement to check your contribution years and income.
- Read your pension certificate to find out what benefits your pension fund provides.
- Estimate your retirement budget, taking housing, healthcare and your plans into account.
- Look out for changes in your circumstances: part-time work, divorce, moving to Switzerland, self-employment or early retirement.
- Compare solutions before paying in, especially pension fund buy-ins and pillar 3a.
These checks help you distinguish a temporary contribution shortfall from a more significant gap. To learn more about retirement needs and the role of AHV, also see these guides on the income needed to live well in retirement and the limits of the first pillar.
Understanding what a retirement savings gap means
A retirement savings gap is the difference between the resources you expect to have after your working life and the budget you need to live the way you want. Benefits from the three pillars — AHV, pension fund and personal savings — may not cover this gap.
The rule of thumb of 80 to 90% of your last income is sometimes used as a first estimate, but it does not suit everyone. A paid-off home, high medical costs or travel plans can significantly change how much you need.
Coverage gaps do not only affect retirement. Retirement insurance can also help protect your loved ones or your income in the event of disability or death: these future risks should be assessed separately from retirement savings.
Career paths that put future income at risk
A missing contribution year can reduce your AHV pension, while a lower insured salary can limit your pension fund benefits. Part-time work, career breaks, extended stays abroad and certain periods of unpaid caregiving should therefore be reviewed.
Self-employed people should pay particular attention to the second pillar, as joining a pension fund is not always compulsory. After a divorce or a recent move to Switzerland, a personalised review can also help identify entitlements and any shortfalls.
Calculate the gap without confusing an estimate with a guarantee
Start by adding your estimated AHV pension, the benefits shown on your pension certificate and the expected income from your personal savings. Then compare this total with a realistic retirement budget. The annual difference gives you a rough idea, not a guaranteed income.
For example, someone earning 90,720 francs a year and expecting 58,060 francs in AHV and pension fund benefits would have about 64% of their final income. If they are aiming for 80%, the theoretical shortfall is 14,516 francs a year, before taking savings, inflation, taxes and returns into account.
Over 20 years, this gap would amount to 290,320 francs without adjustments. With 100,000 francs in pillar 3a savings, the theoretical shortfall would fall to 190,320 francs, but this simplified calculation does not take changes in expenses or capital income into account.
| What to check | Where to find the information | What it helps with |
|---|---|---|
| AHV years and income | AHV individual account statement | Identifying missing contribution periods |
| Second-pillar benefits | Annual pension fund certificate | Estimating the expected pension or capital |
| Personal savings | Pillar 3a statements and other assets | Assessing the available supplement |
| Future expenses | Personal budget and plans | Setting an appropriate income target |
What solutions can help fill the gaps?
The right measure depends on the cause of the shortfall, your investment horizon and your need for liquidity. A tax-advantaged contribution is not automatically the best option if you may need the money in the short term.
| Solution | Possible effect | What to watch out for |
|---|---|---|
| Make up missing AHV contributions | May correct certain recent missing years | Retroactive payments are subject to deadlines; check your situation with the compensation office |
| Buy into your pension fund | May increase your retirement savings and, depending on the plan, your benefits | Check the permitted amount, withdrawal rules and tax implications |
| Contribute to pillar 3a | Builds personal savings, with a tax deduction subject to the applicable rules | Contribution limits and conditions depend on whether you are affiliated with a pension fund |
| Unrestricted savings or diversified investments | Offers greater flexibility and growth potential | Returns are not guaranteed and capital can fluctuate |
| Additional insurance coverage | May strengthen financial protection in the event of disability or death | Check the benefits already provided by your employer and existing insurance policies |
In 2026, people affiliated with a pension fund can contribute up to 7,258 francs to pillar 3a. For employed people without a pension fund, the limit can be up to 20% of AHV-insured income, capped at 36,288 francs. Retroactive pillar 3a buy-ins are permitted, subject to conditions, for gaps arising from 2025 onwards: confirm the rules and your eligibility before taking any steps.
For AHV, some missing contributions can be paid retroactively within a limited period, generally five years. Ask your compensation office to confirm: the years concerned and your personal circumstances determine what is possible.
A practical example: Élise works part-time
Élise works 60% after the birth of her child. When she checks her pension certificate, she realises that her pension fund savings are growing more slowly than she thought. She also asks her AHV office whether child-rearing credits are being correctly taken into account.
Rather than immediately drawing on her savings, she compares a higher savings plan with her pension fund and regular pillar 3a contributions. This comparison allows her to keep an accessible reserve while strengthening her retirement provision.
A three-step process for taking action methodically
- Gather your information. Obtain your AHV statement, pension fund certificate and statements for your personal savings. Also check periods of work abroad, self-employment or career breaks.
- Calculate several scenarios. Compare your future budget with estimated benefits, then test different assumptions: retiring at the planned age, working longer or retiring gradually. A projection often shows that a modest, regular adjustment can help.
- Choose a suitable course of action and review it regularly. Before a buy-in or contribution, check the tax conditions, withdrawal deadlines and your liquidity needs. Review your assessment after a change in your family or work situation.
Do not focus only on closing a numerical gap: aim for financial security that fits your plans and risk tolerance. If part of the shortfall relates to loss of earning capacity or death, also check your family protection and the coverage already included in your policies.
Frequently asked questions about retirement savings gaps
When should you review your retirement provision?
An initial review can be useful as soon as you start working, and again whenever there is a major change: part-time work, a birth, divorce, self-employment, moving to Switzerland or buying a home. A more detailed analysis becomes increasingly valuable as retirement approaches.
How can you check whether AHV contributions are missing?
Request an individual account statement from your compensation office. It allows you to check the periods and income recorded. If a year seems to be missing, contact the office to check the procedures and deadlines that apply.
Is a pension fund buy-in always worthwhile?
No. It can improve your benefits and offer a tax advantage, but whether it is worthwhile depends on your plan, financial situation, withdrawal restrictions and future tax liability. Have these points checked before making a payment.
Does a retirement savings gap only affect retirement?
No. You should also review your income and the protection of your loved ones in the event of disability or death. Existing insurance policies and employer benefits can affect the additional coverage you need.
Thanks for reading! Feel free to share your thoughts in the comments. — Quentin
