Pension Gap Calculator: What Do Part-Time Work and Career Breaks Really Cost?
February 26, 2026
9 min read
arvy Pension Calculator
Pension Gap Calculator: What Do Part-Time Work and Career Breaks Really Cost?
The Swiss Gender Pension Gap is 37% — women receive on average CHF 20,000 less per year in retirement. Calculate your personal gap and see a concrete catch-up plan with three levers.
In 30 seconds — what you need to know
- Default scenario (CHF 90,000 salary, 3-year break, 60% workload after, age 33, Zürich): pension gap ≈ CHF 400,000 by retirement — CHF 267,000 pension fund gap + CHF 129,000 missed 3a + CHF 7,000 missed tax savings.
- Coordination deduction 2026: CHF 26,460 — NOT adjusted to workload. At 50% you only have 41% of your salary insured, vs. 71% at 100%. This is the structural root cause of the gap.
- Swiss Gender Pension Gap: 37% across all three pillars (BFS). In the 2nd pillar alone: 67% — men's pensions are nearly twice as high.
- 3 levers to close it: max out 3a (CHF 7,258/year invested = ~CHF 280,000 in 20 years), pension fund buy-ins (fully tax-deductible), savings plan (tax-free capital gains) — combined catch-up potential CHF 500,000+.
- New from 2026: retroactive 3a contributions for missed years (up to 10 years back, but only for gaps from 2025 onward). Career-break returnees can finally close the 3a hole.
On this page
The pension gap is the difference between the retirement income you'd receive with an uninterrupted full-time career and what you actually get. In Switzerland, women receive 37% less pension than men. This calculator shows your personal gap and a concrete catch-up plan — verified with 2026 BVG values.
Gross salary (100%)
Your annual gross income at a 100% workload. The higher your salary, the larger the gap at part-time — because the coordination deduction (CHF 26,460 in 2026) is fixed. → Budget Calculator
CHF 50,000CHF 200,000
Work level after break
Your work level after the career break. The coordination deduction (CHF 26,460) is NOT adjusted to work level. At 60% and CHF 90,000 salary, only CHF 27,540 is insured vs. CHF 63,540 at 100%. This is the biggest trap in the system. → Glossary: Pension Fund
20%100%
Years of career break
Years without earned income = no pension fund contributions, no 3a deposits, no compound interest. 3 years of break cost significantly more than just 3 years of contributions due to lost compound interest.
010 years
Current age
The younger you are, the more time for the catch-up plan and the stronger the compounding. But even at 45+ it's never too late: pension fund buy-ins and 3a are effective at any age. → Investing After 50
2555
Canton
Your Pension Gap
Your Catch-Up Plan
Close your gap. Now.
Invest your 3a, start a savings plan, use compound interest. With arvy, you invest in quality companies — together with founders who put their own money in the same strategy.
⚠ Simplified estimate. Not financial, tax, or pension advice. Values are approximate and vary by pension fund regulations, canton, and personal situation. 2026 BVG key figures: coordination deduction CHF 26,460, entry threshold CHF 22,680, minimum conversion rate 6.8% (source: BSV). For binding calculations: contact your pension fund. arvy is a FINMA-regulated asset manager. Imprint
How the calculator works
The calculator compares two worlds: your wealth with an uninterrupted 100% career vs. your wealth with a career break followed by part-time work. The difference is your pension gap. Three components are calculated: pension fund gap (missed contributions plus compound interest), missed 3a (contributions during the break plus lost compounding), and missed tax savings (3a deduction × your marginal tax rate).
Methodology — what the calculator assumes
BVG contribution rate simplified to a flat 15%: actually it's age-dependent (7% age 25-34, 10% age 35-44, 15% age 45-54, 18% age 55-65). For people under 45 the gap is slightly overstated; for 55+ slightly understated. Coordination deduction fixed at CHF 26,460 (2026 BVG key figure, BSV). Pension fund interest 2% p.a. (above BVG minimum 1.25%, below typical fund returns). 3a return 6% p.a. (invested 3a, equity-oriented). 3a maximum CHF 7,258/year 2026. Catch-up plan capped at 20 years (from current age to retirement 65, capped).
The coordination deduction trap — why part-time gets doubly penalised
The coordination deduction (2026: CHF 26,460) is subtracted from gross salary before the pension fund calculates the insured salary. Its purpose: avoid double-insurance with the AHV (1st pillar). The problem: the deduction is fixed — regardless of work level. Someone at 50% has the same deduction as someone at 100%.
| Work level | Gross salary | Insured salary (PK) | Insured % |
|---|---|---|---|
| 100% | CHF 90,000 | CHF 63,540 | 70.6% |
| 80% | CHF 72,000 | CHF 45,540 | 63.3% |
| 60% | CHF 54,000 | CHF 27,540 | 51.0% |
| 50% | CHF 45,000 | CHF 18,540 | 41.2% |
| 40% | CHF 36,000 | CHF 9,540 | 26.5% |
| 30% | CHF 27,000 | CHF 540 | 2.0% |
| 25% or less | CHF 22,500 | CHF 0 (below entry threshold) | 0% |
Source: 2026 BVG key figures (BSV). Fixed coordination deduction CHF 26,460, entry threshold CHF 22,680. Calculation for CHF 90,000 full-time gross salary. At ≤25% workload you fall below the BVG entry threshold — no mandatory pension fund coverage.
What many pension funds actually do
According to a PwC study, only 12% of Swiss pension funds apply the fixed statutory coordination deduction — 88% reduce it proportionally to workload or skip it entirely. Check your pension fund regulations: if your employer's fund uses a progressive coordination deduction, your gap is significantly smaller than this calculator shows. → Understanding the 2nd Pillar in detail
The Gender Pension Gap in numbers — and why the 2nd pillar drives it
In Switzerland, women receive on average 37% less pension than men. Broken down by pillar:
| Pillar | Gender Pension Gap | Why |
|---|---|---|
| AHV (1st pillar) | ~0% | Solidarity mechanism and childcare credits offset career breaks |
| BV (2nd pillar, pension fund) | 67% | Income-based, part-time trap, fixed coordination deduction |
| Pillar 3a | ~32% | Women contribute less or not at all (career break, lower income) |
| Total all 3 pillars | 37% | CHF 35,840 vs. CHF 54,764 — difference CHF 18,924/year (BFS 2020) |
Source: BFS fact sheet for the Federal Council report on Postulate Marti 19.4132 (2022, data from 2020). For widowed 2nd-pillar recipients even 47.4%; for divorced 37.0%. Newer data (Swiss Life, 2024): ~32.8% — minimal decline.
The structural cause
The gap is not primarily a pay-equity problem (Gender Pay Gap is 16%, Gender Pension Gap is 37%). It comes from career patterns: 60% of Swiss mothers with children under 15 work part-time. Men in the same life phase: 18%. The system penalises every part-time phase twice — through the fixed coordination deduction AND through missed contribution years.
What does each life choice cost?
Concrete costs for various scenarios (CHF 90,000 full-time salary, currently age 33, 32 years to retirement, Zürich):
| Scenario | PK gap | 3a gap | Total gap |
|---|---|---|---|
| No break, always 100% | CHF 0 | CHF 0 | CHF 0 |
| No break, 80% | CHF 96,000 | CHF 0 | CHF 96,000 |
| No break, 60% | CHF 195,000 | CHF 0 | CHF 195,000 |
| 3 years break, then 100% | CHF 54,000 | CHF 136,000 | CHF 190,000 |
| 3 years break, then 60% ★ Default | CHF 267,000 | CHF 136,000 | CHF 403,000 |
| 5 years break, then 60% | CHF 282,000 | CHF 217,000 | CHF 499,000 |
| 5 years break, then 50% | CHF 363,000 | CHF 217,000 | CHF 580,000 |
Calculation with 2026 BVG values (coordination deduction CHF 26,460), pension fund return 2%, 3a return 6%, tax savings at 33% marginal rate (Zürich). Gaps are cumulative to age 65. Actual figures depend on your pension fund's regulations.
The 3 levers to close the gap
The good news: 80-100% of the gap can be actively closed — with three levers that work optimally in this order:
| Lever | Value | Tax savings (Zürich 33%) | Over 20 years @ 6% |
|---|---|---|---|
| 1. Max out Pillar 3a | CHF 7,258/year | ~CHF 2,400/year | CHF 279,500 |
| 2. Pension fund buy-ins (staggered) | e.g. CHF 10,000/year × 10y | ~CHF 3,300/year | CHF 100,000 + tax CHF 33,000 |
| 3. Free savings plan | CHF 300-1,000/mo | Capital gains tax-free | CHF 139,000 (300) to CHF 462,000 (1,000) |
| Total with moderate strategy | — | ~CHF 5,700/year | CHF 500,000+ |
Order matters: 3a has the highest instant return (tax deduction ~33% = 33% return in year 1, before any market gain). Pension fund buy-ins come second, especially in the last 10 years before retirement (highest marginal tax rate). Savings plan rounds out for flexibility.
3-year lock-up for pension fund buy-ins (Art. 79b BVG)
If you do pension fund buy-ins and then withdraw the capital within 3 years, you lose the tax deduction retroactively. Plan buy-ins completed at least 3 years before planned retirement — otherwise a tax clawback. If you plan to withdraw the lump sum: stagger buy-ins earlier.
Retroactive 3a — the new lever from 2026
Since 1 January 2026, the revised pension legislation allows retroactive 3a contributions for missed contribution years — up to 10 years back. Important caveats:
- Only for gaps from 2025 onwards. If you missed 3a in 2024 or earlier, you can't catch up — the rule starts with contribution year 2025.
- Maximum retroactive amount equals the regular annual maximum (CHF 7,258 for employees with a pension fund, CHF 36,288 for self-employed without one).
- Earned income required: only retroactive for years in which you had AHV-relevant income. Pure caregiving years without earned income don't qualify.
- Fully tax-deductible: each retroactive contribution counts in the current tax year, not the past one. Maximum leverage: high marginal tax rate today (e.g. after career progression).
For women returning after a career break, this is a meaningful new lever — provided they don't wait. For more: Pillar 3a Comparison 2026.
📚 arvy Book Club
The Psychology of Money — Morgan Housel
Housel's core thesis applies directly to the pension gap: it's not IQ that makes investors wealthy, it's time. Someone starting at 33 with CHF 605/month into an invested 3a will have ~CHF 280,000 at 65 — almost entirely from compound interest, not from the capital deposited. The gap doesn't close through heroic saving rates — it closes through early start and consistency. This matters especially after a career break: every lost year costs exponentially more.
5 typical mistakes — and how to avoid them
- Leaving 3a in a savings account. 3a savings accounts pay 0.5-1.0% interest. An invested 3a (75-100% equities) earns long-term ~6% p.a. — difference over 30 years: CHF 80,000-150,000 per CHF 7,258 annual contribution. → 3a: Bank, Insurance or App?
- Looking at pension fund buy-ins too late. Many wait until 60+ and only then discover a buy-in gap of CHF 100,000-200,000. Starting earlier (ideally 50+) means benefiting from the highest marginal tax rate AND having time to satisfy the 3-year lock-up.
- Not combining multiple small jobs. Working for two employers at CHF 15,000 each (= below entry threshold CHF 22,680 individually) means you fall out of mandatory BVG. Solution: voluntarily combine through the BVG Substitute Foundation (Stiftung Auffangeinrichtung).
- Not understanding childcare credits. AHV grants childcare credits (Erziehungsgutschriften) for children under 16. These increase your future AHV pension — but must be actively claimed when parents are married and only one parent works.
- Forgetting pension fund balances on job change. If you change jobs and don't actively transfer your vested benefits balance, you risk forgotten accounts and poor investment. Check via the 2nd Pillar Central Office for forgotten balances.
Frequently Asked Questions
How big is the pension gap for part-time workers in Switzerland?
It depends on workload, salary, and duration. A typical 3-year break followed by 60% workload at a CHF 90,000 full-time salary costs around CHF 400,000 in total gap (pension fund + 3a) by retirement. The coordination deduction of CHF 26,460 (2026) is not adjusted to workload, structurally penalising part-time workers.
What is the current coordination deduction in 2026?
The 2026 BVG coordination deduction is CHF 26,460 (7/8 of the maximum AHV pension). This value is unchanged from 2025. Other key 2026 figures: BVG entry threshold CHF 22,680, maximum insured annual salary CHF 90,720, minimum conversion rate 6.8%, minimum interest rate 1.25%. Source: Federal Social Insurance Office (BSV).
How big is the Gender Pension Gap in Switzerland?
Women in Switzerland receive 37% less pension than men (all 3 pillars combined, BFS 2020). In francs: CHF 35,840 vs. CHF 54,764 — difference CHF 18,924/year. In the 2nd pillar alone, the gap is 67%. The AHV is roughly equal (~0% gap) thanks to solidarity mechanisms and childcare credits.
How can I close my pension gap?
Three levers, in this order: (1) max out Pillar 3a (CHF 7,258/year invested = ~CHF 280,000 in 20 years), (2) staggered pension fund buy-ins (fully tax-deductible, ideally 50+), (3) own savings plan (tax-free capital gains). Total with a moderate strategy: CHF 500,000+ catch-up potential in 20 years.
What's the new retroactive 3a from 2026?
Since 1 January 2026 you can retroactively contribute to 3a for up to 10 missed contribution years — but only for gaps from 2025 onwards. Requirement: AHV-relevant income in the year of catch-up. Maximum equals the regular annual contribution. Fully tax-deductible in the current year.
Should I do pension fund buy-ins or max out 3a first?
First max out 3a (always), then consider pension fund buy-ins. Reasoning: 3a is more flexible (multiple accounts possible, earlier withdrawal for relocation or home purchase), pension fund buy-ins lock the money until retirement. Exception: close to retirement (50+) with a high marginal tax rate and secure employment → prioritise buy-ins for the tax leverage.
What does a 3-year career break cost for the pension fund?
Direct missed contributions: ~CHF 55,000 (3 × full-time contribution, compounded to age 65). Plus missed 3a: ~CHF 130,000 (3 × CHF 7,258 invested to retirement). Plus missed tax savings: ~CHF 7,000. Total: ~CHF 190,000-200,000 for a 3-year break followed by full-time return.
How does part-time amplify the effect?
Part-time amplifies the gap massively because the coordination deduction stays fixed. Example: 3-year break + then 60% at CHF 90,000 = CHF 400,000 gap. 3-year break + then 100% = only CHF 190,000 gap. Difference: CHF 210,000 — purely from the lower workload after the break.
What happens if I fall below the BVG entry threshold?
Below CHF 22,680/year (2026) salary, mandatory BVG insurance lapses — you stop building pension fund balance. Solutions: (a) voluntarily combine multiple small jobs via the BVG Substitute Foundation, (b) max out 3a as a substitute, (c) if self-employed, choose a voluntary BVG solution.
What happens to the pension fund in a divorce?
In divorce, the pension fund balance accumulated during the marriage is generally split 50/50 (pension equalisation, Art. 122 ZGB Swiss Civil Code). This typically offsets the pension gap of the part-time spouse (usually the woman). But: unequal workloads during the marriage mean a gap usually remains even after the split — closeable only through own pension provision.
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