The three pillars, in plain language

Swiss retirement money sits in three separate places. Once you see which is which, every deduction on your payslip makes sense.

Pillar one is the state scheme (AHV / AVS). Everyone who lives or works here contributes, employee and employer together, and it is designed to cover the basics in old age, disability and after a death in the family.

Pillar two is the occupational pension (BVG / LPP), organised through your employer's pension fund. It is your money, it follows you when you change jobs, and it is the line on your payslip most newcomers cannot identify.

Pillar three is voluntary private saving. The tax-privileged form (3a) is a separate account or policy you open yourself at a bank or insurer.

What matters in your first month is simply knowing which pension fund your employer uses and getting your annual statement. The contribution thresholds and 3a limits change, so check the current figures with your fund before you plan around them.