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
5 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 across retirement. The reasons are structural: part-time work, the coordination deduction, career breaks for children, lower salaries. The system doesn't disadvantage you deliberately — but it's built for uninterrupted full-time careers that many women don't have. The good news: there are 3 concrete levers you can take into your own hands today. Here's the honest calculation.
The Numbers: How Big the Gap Really Is
The Swiss Federal Statistical Office (BFS) and Swiss Life regularly publish data on the pension gap between women and men. The figures are stark:
What that means in CHF: CHF 1,700 less per month × 12 months × 20 years of retirement = CHF 408,000 less across retirement. Even with more conservative assumptions (shorter duration, smaller gap), we're talking CHF 100,000–200,000. That's not a rounding error. That's an apartment.
Why the Gap Exists: 4 Structural Reasons
1. Part-time work and the coordination deduction
59% of employed women in Switzerland work part-time. This hits the pension fund doubly: less salary = fewer contributions. And the coordination deduction (currently CHF 25,725) is subtracted from total salary, not proportionally to your employment level.
What that means in practice
You work 60% at a gross salary of CHF 54,000. The coordination deduction is CHF 25,725. Your insured salary in the pension fund: CHF 28,275.
Your colleague works 100% and earns CHF 90,000. His insured salary: CHF 64,275.
You save ~CHF 4,200 per year in the pension fund. He saves ~CHF 9,600. Over 30 years: you CHF 126,000, him CHF 288,000 — contributions alone, before interest. The gap is systematic.
The BVG reform 2024 gradually reduces the coordination deduction, improving the situation for part-time workers — but it won't make up for decades of accumulated shortfall.
2. Career breaks for children
Anyone who pauses for 3–5 years or reduces from 100% to 40% loses not just income — but pension fund contributions, 3a contribution years, and compound interest on the foregone capital. A 3-year career break costs roughly CHF 60,000–90,000 in lifetime pension fund assets. (→ Part-Time, Kids, Career Break: What 5 Years Without a Pension Fund Really Costs)
3. Pay inequality
Women in Switzerland earn roughly 18% less than men at the median (BFS). Part of this is explained by industry choice, hours, and seniority. Part isn't. Less salary = fewer pension contributions = less retirement income. The effect compounds across 30–40 working years.
4. Less private provision
Only 42% of women have a 3a account (vs. 60% of men). The reason is often not lack of knowledge, but lack of income after fixed costs — or the assumption that "my partner takes care of it." Both are risks: income can increase, relationships can change.
The 3 Levers You Control
Lever 1: Max out your 3a — every year, no exceptions
CHF 7,258 per year into an invested 3a. Tax savings: CHF 2,000–2,500/year. Over 25 years invested at 6%: ~CHF 440,000.
That alone closes a large part of the pension gap. And the tax savings flow back — you can invest those too. Even on a tight budget: CHF 605/month is the 3a maximum. Start there. (→ 3a Guide)
Lever 2: Pension fund buy-ins after a career break
After a part-time phase or career break, you almost always have a buy-in gap in your pension fund. This gap is shown on your pension fund statement. You can close it with voluntary buy-ins — and deduct every franc fully from taxable income.
Example: CHF 30,000 buy-in gap at a 33% marginal tax rate = CHF 10,000 tax savings. The money continues to grow inside the pension fund. Most effective: staggered over multiple years (maximum tax savings each year). (→ Reading Your Pension Fund Statement)
Lever 3: Your own savings plan — independent of your partner
The 3a has a ceiling. Pension fund buy-ins run out eventually. 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 of security — freely accessible, not tied to an age, not tied to a partner. In Switzerland, capital gains are tax-free. Your own investment account is the most flexible building block for your financial independence. (→ Savings Plan Guide)
What All 3 Levers Achieve Together
CHF 519,000 in 20 years. Plus tax savings of ~CHF 80,000–100,000 over the period. That doesn't close the pension gap entirely — but it transforms a threatening shortfall into a manageable situation. And the largest portion (3a + savings plan) is your money, in your name, under your control.
Why "My Partner Handles It" Is a Risk
This isn't a judgement. It's maths.
In Switzerland, nearly one in two marriages ends in divorce. In a divorce, pension fund assets accumulated during the marriage are split — but not 3a savings, not free assets (unless under separation of property), and not the missed contribution years. Anyone who didn't build their own provision during the marriage often ends up worse off — despite the split.
And even in happy partnerships: financial autonomy isn't a vote of no confidence. It's self-care. Your own 3a account (that's individual by law anyway), your own savings plan, your own understanding of what's on the pension fund statement. It strengthens the partnership because it reduces dependency. (→ Your Money, Your Decision)
Checklist: Actively Closing the Pension Gap
☐ Read your pension fund statement — check projected pension, buy-in gap, conversion rate
☐ Open and max out 3a — invested, not in a savings account (→ 3a Comparison)
☐ Calculate your PK buy-in gap — ask your employer or pension fund administrator
☐ Plan PK buy-ins — staggered over multiple years for maximum tax savings
☐ Start your own savings plan — CHF 200–500/month, automated, in your name
☐ Reinvest tax savings — 3a deduction + PK buy-in → savings into the investment plan
☐ Ask your employer — is there an option to adjust the coordination deduction to your work percentage?
☐ Talk with your partner — discuss finances openly. Who saves what, where?
The Pension Gap Is Real. But It's Not Inevitable.
The Swiss pension system is built for uninterrupted full-time careers. That doesn't match the reality of most women's lives — or many men's. The coordination deduction penalises part-time workers. Career breaks cost compound interest. And lower salaries multiply across decades.
Knowing this is the first step. The second is using the levers you have: 3a, pension fund buy-ins, your own savings plan. Not someday. Now.
"The biggest financial mistake isn't earning too little. It's starting too late to make your money work for you. The pension gap doesn't appear overnight — it builds because nothing happens for years. The opposite is equally true: every month you invest closes it a little further."
Close your gap. Now.
Invest your 3a, start a savings plan, use compound interest. With arvy, you invest in the 30 best companies in the world — from CHF 1, no minimum term, with real people who answer your questions.
Disclaimer: This article is for general information and does not constitute personal financial, tax, or pension advice. The figures mentioned are reference values and may vary depending on canton, pension fund rules, and personal circumstances. arvy is a FINMA-regulated asset manager.
