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Imagine you are 60 years old and about to retire. What plans do you have for retirement? Are you financially equipped to cope with the unexpected? Many people are reluctant to deal with this topic. But, for women especially, making financial provisions for retirement is important. In this respect, it’s essential to know what causes the gender pension gap as well as to plan for the future and take action.

Did you know that, on average, women’s retirement pensions are 31% lower than those of men? This difference in pension income between women and men is referred to as the gender pension gap. The following factors contribute significantly to this gap:

1. Gender pay gap: Women often earn less than men, even if they have a similar education and job. They frequently reach the limit on their maximum salary early in their careers, while men tend to continue to receive salary increases until much later in their professional lives.
2. Career breaks for childcare: Once they have children, many women switch to working part-time and this is often the reason that their income is lower. This results in less money for retirement. 
3. Part-time work: It’s more common for women to work part-time – in Switzerland, 6 out of 10 women do so. This means that they earn less and don’t pay as much into their pension funds.  
4. Divorce: Divorce can have significant financial implications, especially for women. It often leads to a reduction in income because women frequently have to bear an additional financial burden after separation, such as sole responsibility for childcare. This may mean having to reduce their working hours or taking less flexible and lower-paid jobs. In addition, the joint pension entitlements are split, which has a negative effect on retirement provision. Find out in this article how divorce affects your pension fund.  
5. No pension fund: One in four women does not have a pension fund when they retire because they never had income that was subject to mandatory insurance contributions. This may be due to the fact that they did not work or that they had one or more part-time jobs, which meant that they did not earn enough to be able to pay into a pension fund.   
6. Life expectancy: In Switzerland, women generally live four years longer than men. This means that retirement savings have to last longer.    

The result of all of these factors combined is the gender pension gap, which for some women can be quite large. So, what can you do about it? The answer is a lot! Prepare, consider all the eventualities and take action. How? We’ll explain this in the following three steps.

In general, the earlier you start saving for retirement, the better. It’s advisable to get started in your 20s. That said, it’s never too late. Even if you started planning much later, it’s still worth having a detailed look at your retirement savings today and taking action.  

Whereas the focus for those under the age of 50 should be primarily on setting up retirement funds and building capital, once you turn 50 you should start with detailed planning. This will allow you to react to foreseeable financial bottlenecks in time or even see that you can retire early. It’s best to have a combination of all three pillars (state pension, pension fund and private retirement savings): 

1. Keep track of your state pension (AHV). Not everyone gets the same amount of pension. It’s also possible to have gaps that will reduce your state pension. You should therefore clarify how much your state pension will be. Order an AHV account statement and check whether all contribution years have been paid and what pension benefits you can expect upon retirement. If you have paid in less than the annual AHV minimum contribution, you should make up the difference each year. It’s possible to do this within the subsequent five-year period. 
2. Close any gaps in your pension fund. Your pension fund assets are dependent to a large extent on your income. If you are not a salaried employee, you are not eligible for occupational benefits insurance. Those with a low income are further disadvantaged due to the coordination deduction. Current law stipulates that the first CHF 22,680 of earnings (as of 2025) are only insured in the 1st pillar and not in the 2nd pillar. This means that women who work part-time in particular lose out in occupational benefits insurance. Many women have a gap in their pension fund because, for their entire working life, their insured salary is based on part-time work. For low earners, the pension gap may be a small one as they pay less into the pension fund anyway on account of their low income and therefore generally acquire fewer pension entitlements. For people who do not earn much because they work part-time and for those with low incomes, it’s advisable to look into the possibility of purchasing additional pension fund benefits in order to close any pension gaps. However, before doing so, it’s important to take a careful look at the financial situation of the individual pension fund.  
3. Take full advantage of the 3rd pillar. Paying into pillar 3a every year allows you to benefit from tax breaks and prevent pension gaps. To be eligible, you need to earn an income that is subject to AHV contributions. Employed persons who have a pension fund can pay in a maximum of CHF 7,258 per year (as of 2025). Individuals who are self-employed and don’t have a pension fund can invest up to 20% of their net income (up to a maximum of CHF 36,288, as of 2025) in this restricted form of pension provision. There is also the possibility to invest pillar 3a assets in retirement funds, which offer additional potential returns. Preference should be given to making voluntary payments into pillar 3a rather than your pension fund, as the former offers tax advantages, provides more flexibility in the choice of investments and is not dependent on your employer. 

As women, we need to realize that we are responsible for providing for our own retirement. Ensure that remain financially independent and don’t rely solely on your company pension fund or your partner for financial security. Plan your private retirement savings in good time. And never think that it’s too late to start. There are many different ways for you to shape your retirement provision. The important thing is that you take action today.