A survey shows that over 60% of the population contributes to private pillar 3a savings plans. As many as 25% are convinced that they will not receive a pension from the AHV/AVS or their occupational pension plan once they retire.

A "representative survey on pillar 3a savings" commissioned by comparis.ch from Link, a market research institute, shows that only three-quarters of those surveyed believe that they will receive something in return for their compulsory pension plan contributions when they retire. The 2^nd pillar is viewed more optimistically than the 1^st: while 74% believe they will receive benefits from their occupational pension fund, only 71% believe the AHV/AVS – the Federal Retirement and Survivors' Insurance – will pay them a pension.

Young people are not banking on AHV/AVS pension benefits

The younger those surveyed, the less confidence they have in the federal pension system. Only 59% of the under-40s believe that they will receive any 1^st pillar benefits at all. Moreover, 52% of this age group believe that they will receive less when they retire than pensioners today. Those surveyed show somewhat more trust in the financial stability of their 2^nd pillar: 71% of the under-40 age group believe that they will receive a pension from their occupational pension plan.

Nearly one-half of those surveyed assume they will receive less than expected

48% of those surveyed think they will receive a lower AHV/AVS pension then that they would be entitled to today (see graph 1). About 34% also believe they will receive less from their pension plan than they and their employer will have paid in – interest included.

Pillar 3a – a safe retirement savings plan

The lack of confidence in the 1st and 2nd pillar systems explains why 61% of those surveyed also save privately for retirement in the framework of tied pillar 3a plans. For 62%, the main reason is to provide for retirement, while 34% are interested in saving taxes. It is noteworthy that only 18% of those surveyed, or nearly one-half of those with a pillar 3a savings plan, contribute to the extent of their full allowance. 31% of those who do not have a 3a retirement savings plan indicated that they could not afford one for the time being.

Swiss Germans make greater use of private retirement savings plans

In the German-speaking part of Switzerland, 65% of those surveyed contribute to a 3^rd pillar plan compared with only 52% in French-speaking Switzerland and 50% in the Ticino. Apparently, more French speakers believe they will receive pension fund benefits than do German speakers.