Pillar 3a for women: close the pension gap with part-time work and motherhood

1. Why do women receive less pension than men?

In Switzerland, women receive on average around 33 percent less pension in old age than men. This gender pension gap is distributed very unevenly: with OASI there are hardly any differences, while with the pension fund women receive around 47 percent less pension, according to the Federal Statistical Office.

There are several reasons for this:

• part-time work and employment interruptions due to childcare
• lower salaries across the entire working life
• fewer contribution years in the pension fund

Anyone who reduces their workload for the family pays less into the pension fund year after year. Many increase it again later but usually no longer make up the missing contributions. In the event of a divorce, the 3a balance accumulated during the marriage can also be divided, depending on the matrimonial property regime.

This makes an own, private provision through Pillar 3a all the more important.

2. How does part-time work affect the pension fund?

Part-time work reduces pension fund benefits often more strongly than the reduced workload suggests. The reason is two fixed figures in occupational provision: the entry threshold and the coordination deduction.

Only from an annual salary of CHF 22'680 is an employment insured in the pension fund at all. From the salary above that, the coordination deduction of CHF 26'460 is subtracted; only the rest counts as insured salary, meaning the part of the salary on which the pension fund calculates contributions. With a low part-time salary, particularly little remains of it:

_{Insured salary = annual salary minus coordination deduction (CHF 26'460), as of 2026. Many pension funds reduce it proportionally for part-time work.}

A 60-percent workload therefore brings only around 43 percent of the insured salary of a full-time workload, a 40-percent workload only a fraction. This is exactly where the gap arises.

An additional employment interruption due to childcare intensifies it, because the compound interest effect also turns out smaller. This often only becomes visible when retirement approaches.

3. How big is the pension gap for women?

How strongly part-time work adds up is shown by a simple example.

Example calculation: A 42-year-old secondary school teacher from Schwyz works ten years at a 60-percent workload instead of full-time. Each year, less flows into her pension fund as a result:

_{Model values, rounded. Because of the coordination deduction, the contribution falls more steeply than the workload.}

That is around CHF 6'500 less per year, over ten years about CHF 65'000. Together with the compound interest effect, a good CHF 80'000 is missing from her old-age capital by retirement. She can no longer make up these contributions later.

OASI only partially balances out such differences, while in the pension fund lower salaries have a much stronger effect. A private provision such as the tax-deductible Pillar 3a can partially close the gap, provided it starts early enough. Anyone who only checks the pension gap shortly before retirement has little room left.

4. Can Pillar 3a compensate for the pension gap?

Yes, at least partially. Regular contributions to Pillar 3a build up an own pension capital that cushions the gap from the pension fund. What is decisive is the early start: even small amounts grow noticeably over decades.

_{Orders of magnitude with long-term securities investment and average return, rounded.}

Especially with reduced pension fund benefits, Pillar 3a works several times over: the contribution up to the maximum contribution lowers taxes every year, the balance grows tax-free and over the years pension capital arises alongside OASI and the pension fund. With a long investment horizon, a securities solution brings higher return opportunities and uses the compound interest effect more strongly; with a short horizon, the 3a account remains the conservative choice.

5. How can I close my pension gap as a woman?

Pillar 3a brings the most, but it is not the only way. These three approaches can be combined:

• Build up Pillar 3a: contribute regularly, best with a standing order across the whole year.
• Close OASI contribution gaps: missing contribution years can be paid retroactively within five years. Each missing year reduces the later OASI pension by around 2.3 percent.
• Buy into the pension fund: those who earn more again after the family phase can often buy into the second pillar with larger amounts and save additional taxes.

The most common mistake is to underestimate the consequences of part-time work and to rely solely on OASI or on the partner's coverage. An own provision is especially central for self-employed persons without a pension fund and for women in cohabitation, who have no statutory survivor coverage.

More on the 3a retroactive contribution

Pillar 3a retroactive contribution

Since 2026, missed 3a contributions can be paid retroactively under certain conditions, ideal after a family phase. Compando shows requirements, deadline and amount.

6. Conclusion: is Pillar 3a worthwhile for women?

Yes, precisely with part-time work Pillar 3a is especially worthwhile: because part-time work and employment interruptions hit the pension fund hard, private provision makes up part of the lower benefits. Three things determine the effect:

• Early start: every additional year of investment time strengthens the compound interest effect.
• Regularity: constant contributions up to the maximum contribution beat irregular large amounts.
• Investment form: over long horizons, a securities solution brings considerably more than the pure account.

How strongly costs and return opportunities differ between providers also matters over the decades.

This article was first published on 11/05/2026