Why is it better to have pension cover from

an efficient pension fund? So that the money

you pay in can work for your retirement.

Insured benefits

The objective of the employee benefits insurance is - together with the benefits paid by the AHV and the IV - to enable the insured to maintain their current standard of living after retirement. Employers are obliged to insure their employees with a pension fund against the financial consequences of old age, disability and death. The employer must pay at least 50% of the pension fund contributions.

The employee benefits insurance (BVG) is only compulsory for employees whose salary exceeds three-quarters of the maximum AHV pension. Other employees and self-employed individuals can join the employee benefits insurance voluntarily, but people who are not gainfully employed may not do so. In contrast to the AHV/IV and most other social insurance schemes, the employee benefits insurance is financed with a level-premium system. This means that every insured individually saves his/her retirement capital, which is then used to finance the pension payments when a claim arises.


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