The pension gap: Why women in Switzerland receive CHF 100,000 less in pension payments — and what you can do about it now
March 17, 2025
4 min read
arvy's Teaser: Women in Switzerland receive on average 37% less pension than men. That's not CHF 200 less per month — it's over CHF 100,000 less over the entire retirement. The causes are structural: part-time work, the coordination deduction, career breaks, lower wages. The system doesn't disadvantage you intentionally — but it's designed for 100% employment biographies that many women don't have. The good news: there are 3 concrete levers you can use today.
37%
Gender Pension Gap in Switzerland
CHF 408k
Estimated gap over 20 years retirement (CHF 1,700/month)
42%
Share of women with a 3a account (men: 60%)
The numbers: How large is the gap?
| Metric | Men | Women |
|---|---|---|
| Median pension (AHV + pension fund) | ~CHF 4,600/month | ~CHF 2,900/month |
| Pension fund balance at retirement | ~CHF 360,000 | ~CHF 195,000 |
| Share with 3a account | ~60% | ~42% |
| Gender Pension Gap | ~37% | |
Sources: FSO (BFS), Swiss Life pension study. Rounded reference values.
In CHF: CHF 1,700 less per month × 12 months × 20 years = CHF 408,000 less over retirement. That's not a rounding error. That's a property.
Why the gap occurs: 4 structural reasons
1. Part-time work and the coordination deduction
59% of employed women in Switzerland work part-time. The coordination deduction (currently CHF 25,725) is subtracted from the total salary — not proportional to the employment rate.
What this concretely means
You work 60% at CHF 54,000 gross. Coordination deduction: CHF 25,725. Your insured salary: CHF 28,275.
Your colleague works 100% at CHF 90,000. His insured salary: CHF 64,275.
You save ~CHF 4,200/year in the pension fund. He saves ~CHF 9,600. Over 30 years: you CHF 126,000, him CHF 288,000 — contributions only, without interest. The gap is systematic.
2. Career breaks for children
Three years out of the workforce costs long-term CHF 60,000–90,000 in pension fund assets — in missed contributions, 3a years, and compound interest on foregone capital.
3. The gender pay gap
Women in Switzerland earn on average around 18% less than men (FSO). Lower salary = lower pension fund contributions = lower pension. The effect compounds over 30–40 working years.
4. Less private retirement saving
Only 42% of women have a 3a account (vs. 60% of men). Often not missing knowledge, but missing income after fixed costs — or the assumption that "my partner handles it". Both are risks.
The 3 levers you control yourself
Lever 1: Max out 3a — every year, without exception
CHF 7,258 per year into an invested 3a. Tax saving: CHF 2,000–2,500/year. Over 25 years invested at 6%: ~CHF 440,000.
Even on a tight budget: CHF 605/month is the 3a maximum. Start there. (→ 3a Comparison 2026)
Lever 2: Pension fund buy-ins after the career break
After a part-time phase or break, you almost always have a buy-in gap in your pension fund (shown on your pension fund statement). You can close this gap — and every franc contributed is fully deductible from taxable income.
Example: CHF 30,000 gap at 33% marginal rate = CHF 10,000 in tax savings. Most effective: staggered over several years. (→ Understanding Your Pension Fund Statement)
Lever 3: Your own savings plan — independent of your partner
3a has a cap. But your own savings plan has no limit.
CHF 300/month invested over 20 years at 6%: ~CHF 139,000. That's your third pillar — freely available, not age-locked, not tied to a partner. In Switzerland, capital gains are tax-free. (→ Savings Plan Guide)
What the 3 levers achieve together
| Measure | Monthly | After 20 years (6%) |
|---|---|---|
| Max out Pillar 3a | CHF 605 | ~CHF 280,000 |
| Pension fund buy-in (CHF 5,000/year staggered) | CHF 417 | ~CHF 100,000 + tax savings |
| Own savings plan | CHF 300 | ~CHF 139,000 |
| Total | CHF 1,322 | ~CHF 519,000 |
Illustrative at 6% average return. Pension fund buy-ins depend on individual gap and fund regulations.
CHF 519,000 in 20 years. Plus tax savings of ~CHF 80,000–100,000 over the period. This doesn't fully close the pension gap — but it transforms a threatening gap into a manageable situation. And the majority of it (3a + savings plan) is your money, in your name, under your control.
Why "my partner handles it" is a risk
Around one in two marriages in Switzerland ends in divorce. In a divorce, the pension fund balance accumulated during the marriage is split — but not the 3a, not free assets, and not the missed contribution years. Whoever hasn't saved independently is often worse off afterwards.
And even in happy relationships: Financial autonomy isn't a vote of distrust. It's self-care.
Checklist: Actively closing the pension gap
☐ Read your pension fund statement — projected pension, buy-in gap, conversion rate
☐ Open and max out 3a — invested, not in a savings account
☐ Calculate buy-in gap — ask your employer or pension fund
☐ Plan pension fund buy-ins — staggered over several years
☐ Start your own savings plan — CHF 200–500/month, automated, in your name
☐ Talk to your partner — who saves what, where?
"Every month you invest closes the pension gap a little more. The gap doesn't arise in one day — it arises because nothing happens over years. The opposite is also true."
Frequently asked questions about the pension gap
Why do women in Switzerland receive less pension than men?
Main reasons: part-time work (the coordination deduction in the pension fund disproportionately penalises low hours), career breaks for children (no pension fund contributions = no compound interest), lower wages (18% pay gap per FSO, compounding over decades), and less private retirement saving (only 42% of women have a 3a account vs. 60% of men).
How large is the pension gap between men and women in Switzerland?
The gender pension gap is around 37%. Women receive ~CHF 2,900/month from AHV and pension fund on median, men ~CHF 4,600. Over 20 years of retirement, the difference is around CHF 408,000.
How can I close the pension gap as a woman?
The three most effective levers: (1) Max out Pillar 3a every year (CHF 7,258/year = CHF 2,000–2,500 tax savings + capital building), (2) Check pension fund buy-in gaps after career breaks (fully tax-deductible), (3) Start your own savings plan (CHF 200–500/month, in your own name, tax-free capital gains).
What happens to my pension in a divorce?
Pension fund assets accumulated during the marriage are split 50:50 — regardless of the matrimonial property regime. The 3a is split as part of the property settlement (under standard regime: 50:50 for the portion saved during marriage). Missed contribution years and free assets are not compensated. Your own pension savings are therefore essential even in a partnership.
Close your gap. Now.
Invest your 3a, start a savings plan, let compound interest work. With arvy you invest in quality companies — from CHF 1, no minimum term.
Start savings plan | Open Pillar 3a
Disclaimer: General information only. Figures are reference values and may vary by canton, pension fund regulations, and personal circumstances. arvy is an asset manager supervised by FINMA.
