As a self-employed person in Switzerland, you are not mandatorily insured under the 2nd pillar (BVG). This gives you freedom — but also responsibility. Without a pension fund, you will lack an important source of income in retirement. In this article, you will learn about the options for voluntary BVG affiliation, what it costs and when it is worthwhile compared to pillar 3a.
01Legal Starting Point: BVG and Self-Employed
The Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans (BVG Art. 4) regulates who is mandatorily insured: employees with an annual salary above the entry threshold of CHF 22'680 (as of 2026). Self-employed persons are exempt — but they can opt for voluntary insurance.
BVG Art. 44 explicitly states that self-employed persons can voluntarily subject themselves to pension provision. The options depend on whether you employ staff, belong to a professional association or use the Substitute Occupational Benefit Institution.
02Three Paths to Voluntary BVG Affiliation
Self-employed persons have three options for voluntarily joining occupational pension provision:
The Substitute Occupational Benefit Institution accepts any self-employed person — regardless of industry or association. You register directly with the institution and choose the insured salary yourself (between CHF 22'680 and CHF 88'200 for the BVG mandatory portion, above that in the supra-mandatory portion). The institution offers standard plans with fixed contributions.
Many professional associations offer their members their own pension solutions (e.g. the Swiss Trade Association, architects' association, IT associations). The conditions are often better than with the Substitute Institution, as administrative costs are distributed among more insured persons. Requirement: membership in the respective association.
Do you employ staff and therefore already have a pension fund? Then you can voluntarily join this pension institution as a self-employed person. This is often the most straightforward solution, as the infrastructure already exists.
03Costs: What Does Voluntary BVG Affiliation Cost?
The biggest difference from employees: You pay the entire contribution yourself — both the employer and employee share. For employees, the employer covers at least half of the contributions. This double burden makes voluntary BVG affiliation a noticeable financial commitment.
The contribution amount depends on your age, the insured salary and the chosen pension plan. The BVG minimum contributions (retirement credits) as a percentage of the coordinated salary are set by law:
| Age | Retirement Credit (BVG Minimum) | Self-employed pay (both shares) |
|---|---|---|
| 25–34 | 7% | 7% (employer + employee) |
| 35–44 | 10% | 10% |
| 45–54 | 15% | 15% |
| 55–65 | 18% | 18% |
Coordination Deduction
The coordination deduction determines which portion of your income is insured under the 2nd pillar. The full coordination deduction is CHF 25'900 (as of 2026). This means: With a self-chosen insured salary of CHF 80'000, the coordinated salary is CHF 80'000 − CHF 25'900 = CHF 54'100. Contributions are calculated on this coordinated salary.
04Tax Deductibility
The good news: All BVG contributions are fully deductible from taxable income — for both direct federal tax and cantonal and municipal taxes (DBG Art. 33 Para. 1 lit. d). Since as a self-employed person you pay both shares (employer and employee) yourself, the tax deduction is correspondingly higher.
In addition to regular contributions, voluntary buy-ins into the pension fund are also tax-deductible. Anyone with pension gaps (e.g. due to years with low income or missing contribution years) can close these through buy-ins and significantly reduce taxable income in good years.
05BVG vs. Pillar 3a vs. Free Savings: The Comparison
The central question for self-employed persons is: Should I voluntarily join a pension fund, use the large 3a contribution or save freely? Here is a direct comparison:
| Criterion | Voluntary BVG | Pillar 3a (large contribution) | Free Savings |
|---|---|---|---|
| Max. tax deduction/year | Depends on plan and buy-in (potentially unlimited with buy-in) | CHF 36'288 (max. 20% net income) | No tax deduction |
| Flexibility | Low — fixed contributions, exit difficult | Medium — annual amount freely adjustable | High — full availability |
| Risk coverage | Yes (death and disability integrated) | No (savings only) | No |
| Return | Minimum interest rate (currently 1.25%) | Savings account low, securities market-dependent | Market-dependent, no tax advantages |
| Withdrawal | Pension or capital from retirement age | Capital from 5 years before retirement age | Any time |
| Emergency availability | Very restricted | Only for legal reasons | Any time |
| Costs | Administrative and risk costs | Low costs (bank) | No additional costs |
When is voluntary BVG affiliation worthwhile?
- High income: If you want to deduct more than CHF 36'288 per year for tax purposes — a BVG buy-in is possible in addition to the 3a deduction
- Risk coverage desired: If you want integrated protection in case of death and disability without taking out separate insurance policies
- Stability: If a guaranteed minimum interest rate and predictability are more important to you than return opportunities
- Pension planning: If you prefer a regular pension in retirement rather than a lump-sum payout
When is pillar 3a better?
- Flexibility: If you want to keep the annual contribution flexible (less in bad years, maximum in good years)
- Low costs: If you want to minimise administrative costs — 3a bank products are significantly cheaper than a BVG solution
- Return: If you aim for higher long-term returns with a securities solution
- Separate risk coverage: If you cover death and disability through affordable individual insurance policies
06Practical Decision-Making Guide
The decision for or against voluntary BVG affiliation depends on your personal situation. The following questions will help you decide:
With a net income below CHF 100'000, the large 3a contribution (20% = max. CHF 20'000) is often sufficient. From CHF 180'000+, the large 3a contribution (CHF 36'288) is limited by the 20% cap and BVG affiliation offers additional tax deductions.
With fluctuating income, pillar 3a is more flexible — you simply contribute less. With BVG, contributions are fixed and must be paid even in bad years.
If you do not have separate life insurance and disability insurance, BVG offers integrated protection. However, check whether separate policies might be cheaper.
BVG offers the option of a lifelong pension in retirement. Pillar 3a is always paid out as capital. If you want a pension, BVG is the better choice.
07Bookkeeping and Retirement Planning with einzly
The choice of the right pension strategy depends directly on your business results. einzly provides you with the figures you need for well-founded pension decisions:
- Current net income: See at any time how high your business profit is — the basis for your maximum 3a contribution and BVG planning
- Tax planning: Calculate how BVG contributions and 3a payments affect your taxable income
- OASI contributions in view: einzly shows you your OASI/DI/APG burden, which you need for calculating net income (basis for the maximum 3a amount)
- Record receipts cleanly: All pension contributions are correctly posted as business expenses — ready for the tax return