With more than 50,000 new companies founded each year, competition to attract and retain talent is now as intense as the race to secure investors for many Swiss start-ups. Beyond offering a competitive salary, an attractive occupational pension plan can be a decisive advantage.
Many young entrepreneurs view occupational pensions primarily as a legal obligation that adds cost, especially when they are focused on saving. Yet in an increasingly competitive labor market, with nearly 53,000 new companies created in 2024 (a record), Swiss start-ups must compete not only among themselves but also with established firms that enjoy far greater financial resources and stability. Opting for the right pension fund can thus become a key differentiator in recruiting and retaining skilled employees. "Employment in a start-up often carries a degree of uncertainty. Such companies find it difficult to offer long-term security or high salaries. A sound occupational pension plan helps them remain attractive and build confidence," explains Peter Kappeler, CEO of Pax, a cooperative insurer in Basel specializing in pension solutions.
An undervalued factor
Occupational pensions are often underestimated in the human resources strategies of young companies, even though they can play an important role, not only for experienced professionals but increasingly for younger employees as well. "During contract negotiations, the second pillar is still an underrated factor. Although these benefits are not directly visible on the pay slip, they become more valuable than a simple bonus when retirement or an accident occurs. Younger employees are also showing greater interest in their second pillar and are more sensitive to such advantages," says Peter Kappeler.
Since responsibility for the second pillar usually lies with the employer, a certain lack of transparency may arise within the company. However, transparency itself can also be an advantage in a pension plan. "Companies sometimes forget that they have a legal obligation to inform and train their employees on this topic. Enabling them to take an active role in their occupational pension by giving them, for example, the option of choosing complementary savings plans, can promote loyalty and help an enterprise stand out from its competitors," he adds.
Better risk coverage
"With the legal minimum, costs amount to a few hundred francs per month and per employee. The most attractive plans can exceed 1,000 francs." Nevertheless, there are several ways to strengthen employee protection without changing the basic contribution level. Christian Beckstedde, SME pension specialist at Swiss Life, recommends that start-ups begin with the legal minimum, maintain an equal 50–50 contribution split between employer and employee, and increase benefits gradually as business results permit.
He also advises providing broader risk coverage. “For example, guaranteeing a private hospital room for employees, even abroad, costs around 100 francs per year and per employee but adds considerable value to the employment package. Another option is to link the death benefit to the insured’s salary rather than to the savings capital. Under the Occupational Pensions Act (BVG), in the mandatory scheme, survivors’ pensions are calculated based on the projected retirement assets at age 65. More modern plans define the survivors’ pension as a percentage of the annual salary, for instance, 40 percent of 100,000 francs, or 40,000 francs. For younger employees, or those who have invested their second-pillar assets in property, this can make a real difference."
Additional benefits
In addition to broader risk coverage and higher contributions, companies may also include supplementary benefits in their occupational pension plans. "For employees whose salary exceeds the ceiling for mandatory contributions, it is possible, for example, to let them decide how the surplus is invested. Bonuses may also be paid into the third pillar. Another practical option, requiring only organizational effort, is to negotiate a group rate with a health insurer to offer employees preferential terms," explains Christian Beckstedde.
A well-structured pension strategy can be considerably less costly than many start-ups assume and can prove highly cost-effective. A sound occupational pension plan fosters trust among job applicants and gives employees a sense of security. It also strengthens the company’s position as an attractive employer in a competitive labor market.
On the theme
From paper to digital
Digitizing pension administration can help employees better understand the second pillar. "Today, anyone insured with us can estimate their retirement benefits or calculate how much they could withdraw to buy a property by scanning a QR code on their pension certificate," explains Peter Kappeler, CEO of Pax, a Basel-based insurer specializing in occupational pensions. "This is also an educational advantage for cross-border employees, for example, who aren’t always familiar with the Swiss pension system."
Christian Beckstedde, SME pension specialist at Swiss Life, agrees: "Digitization also benefits employers by making it easier to register new employees. Between 90 and 95 percent of our insured members now use the online platform. However, we stay in close contact with our clients, and paper forms can still be used if preferred."
In discussion
Last modification 05.11.2025
