Your pension fund statement explained
Your Swiss Pension Fund Statement Explained — Number by Number
Your pension fund statement is the most important financial document you own — and most people throw it unread into a drawer. In 10 minutes you can read it, and the numbers on it can decide over tens of thousands of francs. Here's what every line really means.
Once a year it arrives in your mailbox or inbox: the Swiss pension fund statement ("Pensionskassenausweis"). Three pages, about two dozen numbers, a few footnotes. For most people it's a mystery — a document you "should probably keep somewhere" and then forget about until next year. That's an expensive mistake. Because these three pages contain information that influences your future wealth more than almost any other financial decision you'll make.
This article walks you through every relevant number on the statement. Not academically, but practically: what it means, what it does for you, and where you have a lever you'd otherwise overlook. By the end, you'll know exactly which numbers to highlight and which decisions to make based on the statement.
6.8%
Minimum conversion rate in BVG mandatory portion
CHF 26'460
Coordination deduction 2026 — the "invisible" amount
Art. 79b
3-year lock-up after pension fund buy-ins
Contents
- Why the PK statement is so important
- The retirement capital — your current wealth
- Coordination deduction and insured salary
- The conversion rate — how high your pension really will be
- The buy-in gap — the biggest tax lever
- Risk benefits — disability and death
- WEF advance withdrawal and pledging
- Frequently asked questions
01Why the PK statement is so important
The pension fund (2nd pillar) is for most Swiss employees the largest wealth position in old age — larger than the home, larger than Pillar 3a, larger than all free investments combined. Those who contribute for 40 years on an average salary often have between CHF 400'000 and CHF 1'000'000 in their pension fund at retirement — money that remains completely invisible during most of their career because the employer deducts contributions directly from the salary and you only see the balance on this one document.
Exactly that's why the PK statement is so important. It shows you not only how much you have — it also shows you how much you could additionally contribute (with immediate tax savings), what pension to expect later, and which assumptions underlie this forecast. Anyone who doesn't know these numbers makes financial decisions blind — and in a system where a single decision (pension vs. lump sum, early buy-in, correct withdrawal year) often makes a CHF 50'000–200'000 difference, that's an expensive luxury.
The PK statement is also the basis for the decision pension vs. lump sum. Our deep-dive on this: Pension Fund Lump Sum: Optimise Taxes.
02The retirement capital — your current wealth
At the top of the statement you'll find your current retirement capital. That's the sum that sits today in your pension fund account. It consists of three components: your own contributions, the employer's contributions, and the interest that has been credited to the balance over the years.
Important to understand: this amount is usually broken down into two parts:
Field on the statement
Mandatory vs. over-mandatory retirement capital
Mandatory retirement capital (BVG obligation): the legally prescribed base. For 2026 the maximum mandatory insured salary is CHF 90'720 per year. The legal minimum conversion rate of 6.8% applies to this part.
Over-mandatory retirement capital: everything beyond that. If you earn more than CHF 90'720, the excess goes into the over-mandatory portion. Here the pension fund has design freedom — the conversion rate is typically between 4.5% and 5.8%, so significantly lower than the mandatory rate.
This distinction is crucial because your effective blended conversion rate becomes lower the higher the over-mandatory share. High earners with a large over-mandatory portion often have a blended conversion rate of only 5.0–5.5%, not 6.8%. Anyone who only knows the legal rate and doesn't look more closely systematically overestimates their later pension.
03Coordination deduction and insured salary
Here it gets uncomfortable. The coordination deduction is one of the most misunderstood parts of the Swiss pension system — and for people with smaller workloads or lower salaries it can be quite painful.
The basic idea: because AHV (1st pillar) already covers the first CHF 26'460 (as of 2026) of your annual salary, the basic BVG insurance only insures the part above that. So the coordination deduction is the amount that's deducted from the gross salary before the insured salary for pension fund contributions is calculated.
The concrete math
Gross salary CHF 80'000, coordination deduction CHF 26'460 (2026) = insured salary CHF 53'540.
Your PK contributions (employee and employer shares combined) are calculated on these CHF 53'540, not on the full CHF 80'000. And exactly this amount is the basis for your future pension claim.
For full-time employees with higher salaries, the effect is barely noticeable. For part-time employees and lower salaries, however, it's severe: someone working on a CHF 35'000 annual salary has only CHF 8'540 insured salary after the coordination deduction. This means: over an entire working life, absolutely minimal amounts are paid into the PK, and the later pension is correspondingly small.
The good news since 2025: The BVG reform (BVG21) provides for the coordination deduction to be progressively adjusted to income. This substantially improves the situation for part-time employees. Some pension funds have already voluntarily introduced a flexible or reduced coordination deduction — check your statement to see how your fund handles this.
04The conversion rate — how high your pension really will be
The most important value for your retirement. The conversion rate determines how much lifetime pension you get per CHF 100'000 of retirement capital. If the rate is 6.8%, you receive CHF 6'800 per year per CHF 100'000. If it's 5.2%, it's only CHF 5'200. Sounds like a small difference — but it isn't.
| Retirement capital | Pension @ 6.8% | Pension @ 5.5% | Difference/year |
|---|---|---|---|
| CHF 300'000 | CHF 20'400 | CHF 16'500 | −CHF 3'900 |
| CHF 500'000 | CHF 34'000 | CHF 27'500 | −CHF 6'500 |
| CHF 750'000 | CHF 51'000 | CHF 41'250 | −CHF 9'750 |
| CHF 1'000'000 | CHF 68'000 | CHF 55'000 | −CHF 13'000 |
Over 25 years of pension receipt, the annual difference multiplies accordingly. For CHF 500'000 retirement capital: around CHF 162'500 lifetime difference.
The legal minimum rate (6.8%) only applies to the mandatory part of your retirement capital. In the over-mandatory part the pension fund is free and usually chooses significantly lower rates — typically 4.5–5.5%, in some cases even lower. Your effective blended rate is on your statement. Find it, mark it, understand it.
Why the conversion rate keeps falling
Pension funds lower the conversion rate because people live longer (longer pension phase) and the achievable investment returns on reserves are lower than they used to be. Anyone retiring in 2005 typically had a blended rate of 6.5–7.0%. Anyone retiring in 2026 is more likely at 5.2–5.8%. Anyone retiring in 10 years will start lower still. The trend is clear and irreversible — and it's one of the main reasons more and more people choose a (partial) lump sum withdrawal instead of the pension.
05The buy-in gap — the biggest tax lever
If there's a single field on the PK statement that represents the biggest financial lever of many people's lives, it's this one: the buy-in gap (also called "maximum possible buy-in" or "buy-in potential"). It arises when your current retirement capital is lower than what you would have if you'd always contributed to the same pension fund at your current salary since the start of your career.
Typical reasons for buy-in gaps: salary jumps during the career, part-time phases, time spent abroad, changes of pension fund with a worse interest profile, or simply a late career start (e.g. after a long period of study).
The tax lever in numbers
Scenario: You earn CHF 130'000 gross, live in the city of Zurich, are 52 years old. Your PK statement shows a buy-in gap of CHF 60'000. You decide to buy in CHF 25'000.
Tax effect: Your taxable income drops from CHF 130'000 to CHF 105'000. At a combined marginal tax rate of about 32% (federal + cantonal + City of Zurich municipal), you save roughly CHF 8'000 in taxes in the buy-in year. That's an immediate, guaranteed return of 32% on the contributed capital — something no single investment in the world can offer.
And the capital? It's not "gone". It's now in your pension fund and, when later withdrawn, will only be subject to the separate (much lower) capital withdrawal tax. So you've traded the tax of ~32% against a later tax of ~5–8% — and additionally you benefit from tax-free interest accumulation within the PK.
Important trap: Art. 79b BVG (3-year lock-up)
If you later want to take the contributed amount as a lump sum, observe the 3-year lock-up under Art. 79b para. 3 BVG: in the 3 calendar years after a voluntary buy-in, the contributed capital cannot be drawn as a lump sum — not even partially. The Federal Supreme Court has strictly interpreted this rule in several rulings (BGE 2C_658/2009, 2C_6/2021): the lock-up applies to the entire retirement capital, not just the bought-in portion.
Planning consequence: If you retire at 65 and want a lump sum, your last buy-in must occur at the latest in the year of your 62nd birthday. Anyone who ignores this retroactively loses the tax deduction and must take the money as a pension anyway.
The complete buy-in strategy including optimal timing, staggering, and cantonal comparison is in Pension Fund Lump Sum: Optimise Taxes.
06Risk benefits — disability and death
Most people only think of the retirement pension when they hear "pension fund". But the PK also pays out in case of disability and death. These numbers are on the statement — and they're more important than you might think, because they can determine your family's financial security.
Disability pension: If you become unable to work due to illness or accident, the PK pays a disability pension. The amount is directly on the statement, typically as an annual figure. Additionally you receive a disability pension from the IV (1st pillar). Check whether the sum of both pensions is enough to cover your living costs. If not, you should consider a separate disability insurance.
Spouse/partner pension: If the insured employee dies, the surviving spouse (or in some funds also the registered partner) receives a lifetime pension. Typically 60% of the retirement pension the deceased would have received. Unmarried partners often need to be actively registered with the PK — otherwise there's no entitlement, even after 20 years of cohabitation. Check whether your fund regulations require this.
Orphan's pension: Children under 18 (or up to 25 in education) receive an orphan's pension. Also listed on the statement.
07WEF advance withdrawal and pledging
The last number relevant for many: the information on the possible WEF advance withdrawal (Wohneigentumsförderung — home ownership promotion). That's the amount you could withdraw or pledge from your PK to buy or amortise a primary residence.
Up to age 50 you may withdraw the entire retirement capital. After 50, restrictions apply — typically at most 50% of the current capital or the amount shown on the statement as "maximum WEF advance withdrawal".
WEF advance withdrawal: pro vs. con
Pro: Fast access to equity for a home purchase, usually cheaper than a 2nd mortgage.
Con: Retirement capital and therefore future pension fall substantially. Often also risk benefits (disability, death). And: as long as the advance withdrawal isn't repaid, you can't make voluntary PK buy-ins (with tax deduction). That makes tax optimisation completely impossible for 10+ years.
The better alternative in many cases: pledging instead of advance withdrawal. The capital stays in the PK and continues to grow, but it serves as collateral for the mortgage. This way you keep the full retirement pension and the full buy-in possibility.
08Frequently asked questions
How often do I get the PK statement?
Once a year, typically in the first quarter. Many pension funds additionally provide it online at any time (in the customer portal) — check whether your fund offers this.
What do I do if I don't understand the numbers on my statement?
Call your pension fund and ask specifically. Most funds have a hotline for insured persons and are obliged to explain the numbers. That's your right as an insured person.
My statement shows no buy-in gap. Can I still buy in?
No. If your current retirement capital equals the "ideal" capital you would have with uninterrupted contributions, there's no buy-in gap. That's rare but possible — typical for people who have continuously worked for the same employer with rising salary since career start.
Which conversion rate will apply when I retire?
The one on your last statement before retirement. Pension funds often lower rates, so the rate you see today may be lower when you actually retire. The statement usually includes a projection for different retirement ages.
Does a PK buy-in also count for reducing Pillar 3a gaps?
No. Contributions to Pillar 3a and pension fund buy-ins are two separate systems with separate rules. Both are fully deductible from taxable income — and you can (should) use both.
What's the difference between projected and current pension on the statement?
The current pension would be what you'd get if you retired today. The projected pension is an extrapolation up to your regular retirement age, assuming you continue to contribute at the current salary and the fund's interest reaches a certain level. The projection is one estimate, not a guarantee — based on assumptions that can change.
Can I switch my PK if I'm not satisfied with it?
Not directly. The pension fund is tied to the employer — you can only switch by changing employer. Self-employed people have more freedom of choice (they can take the Auffangeinrichtung or a self-chosen PK).
What happens to my PK capital when I change employer?
The capital is automatically transferred to the new employer's PK ("entry benefit"). If you temporarily have no new employer, the capital goes to a vested benefits account — a separate vehicle we've explained in its own article.
Further reading & calculators
Pension Fund Lump Sum
The tax strategy at retirement
Pension vs. Lump Sum Calculator
The breakeven for your situation
Vested benefits explained
What happens when you change employer
FIRE in Switzerland
The honest guide to early retirement
Part-time & career break
What 5 years without PK costs
5 biggest money mistakes
Ignoring your PK statement is mistake #2
Ten minutes that decide over tens of thousands
The PK statement is one of the few documents where 10 minutes of reading pay off over a lifetime in five-, often six-figure amounts. Make it a habit: when the new statement arrives, sit down, go through every line, mark the four important numbers (retirement capital, conversion rate, buy-in gap, projected pension) — and make your decisions for the current year based on it. Not sometime. Right now.
Written by Thierry Borgeat, Co-Founder of arvy, and reviewed by Patrick Rissi, CFA and Florian Jauch, CFA. Numbers and calculations in this article are based on 2026 BVG data: coordination deduction CHF 26'460, maximum insured salary CHF 90'720, BVG minimum conversion rate 6.8%. The lock-up after voluntary buy-ins is regulated in Art. 79b para. 3 BVG and strictly interpreted by the Federal Supreme Court in leading decisions 2C_658/2009 and 2C_6/2021. Last updated April 2026.
Disclaimer: This article is for general educational purposes and does not constitute personal investment, retirement, or tax advice. Tax amounts cited are estimates and vary by canton, municipality, and individual situation. For concrete decisions we recommend consulting an independent retirement advisor. arvy is a FINMA-supervised asset manager with a CISA licence. Imprint & Legal Notice.
