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Pensions (Three Pillar system)

The old-age pension system consists of three levels (pillars). The first is the state pension plan. Every resident must pay contributions to a federal insurance scheme, which pays out a pension on retirement to cover basic needs. The second pillar involves an occupational pension. This is an obligatory insurance to which employers and employees contribute equally. The money accumulated is paid out in the form of a pension or capital. The third pillar is an individual pension. It is voluntary and contributions can be deducted from tax.


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