Pension planning for the self-employed: building security without a company pension fund
Becoming self-employed means gaining greater professional and decision-making freedom, but also taking on responsibilities that, as an employee, are often handled automatically by the employer. One of the most important of these concerns pension provision.
Many self-employed people only discover over time that the absence of a company pension fund can create significant gaps in the protection of their future income, particularly in the event of retirement, disability or death.
The difference compared with an employee
For an employee, part of their pension provision is built up automatically through the 2nd pillar (BVG/LPP). For a self-employed person, however, this component may be absent or only partially organised.
This means that future financial security depends much more on personal choices and on the ability to plan over time.
Without a clear pension strategy, there is a risk of ending up with:
- pensions that are insufficient for your standard of living
- limited protection in the event of disability
- little protection for your family
- irregular accumulation of pension savings
- exclusive dependence on the 1st pillar
The 3rd pillar becomes central
For many self-employed people, the 3rd pillar is one of the most important tools for building pension capital and personal protection.
It is not just about saving, but about creating a structure that can supplement future pensions and offer greater stability at the most delicate moments in your professional and private life.
Proper planning makes it possible to:
- build up capital over time
- protect your personal income
- protect your family
- improve your future financial flexibility
- optimise certain tax aspects
Pension provision and professional activity are linked
For many self-employed people, personal assets and business activity are closely intertwined. A period of inactivity, a health problem or a drop in income can have immediate consequences on the family’s financial balance.
For this reason, pension provision should not be addressed separately from the overall management of the business.
Income protection, insurance cover, retirement planning and business continuity must be built in a coordinated way.
Planning today to maintain freedom tomorrow
One of the most common mistakes among the self-employed is postponing pension decisions to later years, often because their attention is focused on growing the business.
In reality, starting early makes it possible to build more sustainable solutions gradually over time, avoiding last-minute measures or insufficient savings.
Pension provision is not only about retirement, but about the ability to maintain stability, autonomy and freedom of decision throughout every stage of your working life.
Every situation requires a personalised approach
There is no single pension solution that suits all self-employed people. Income, business structure, personal goals and family situation all have a profound influence on the choices to be made.
Effective planning always starts with a concrete analysis of your current situation and future needs, with the aim of building protection that is consistent, flexible and sustainable over time.
Article written by:
Loïc Dubied
Deputy Head of Communication & Marketing CH, MSc in Business Administration HSLU