Estimating Swiss second pillar retirement savings involves projecting the accumulated capital at retirement age. This projection considers factors such as current savings, projected salary increases, potential interest rates, and individual contribution rates. An example might be a 35-year-old individual with 100,000 CHF currently saved aiming to project their retirement funds at age 65.
Understanding potential retirement income is crucial for financial planning in Switzerland. These projections allow individuals to gauge whether their current savings trajectory aligns with their retirement goals and to adjust contributions or investment strategies accordingly. The second pillar system, a mandatory component of the Swiss retirement system, plays a significant role in ensuring financial security post-retirement, supplementing the benefits provided by the first pillar (AHV/AVS). Its historical development reflects a societal commitment to providing a multi-faceted approach to retirement security.
