Cohabitation is on the rise in Switzerland, driven in part by tax advantages. Unmarried couples may receive higher AHV pensions than married couples, as married couples often pay higher taxes. However, many cohabiting couples are unaware of the risks they face, especially when it comes to retirement planning.
Unmarried partners do not receive a widow’s pension or widow’s supplement from AHV in case of separation or the death of a partner. Part-time workers, particularly women who reduce their workload after having children, may face gaps in pension provision. The gender pay gap and lower career advancement opportunities can also impact women’s pensions.
It is important for cohabiting couples to consider their financial security and retirement planning. Establishing a cohabitation agreement can help protect both partners in case of separation. Making contributions to the third pillar for retirement savings and working at higher levels can help bridge pension gaps. Ultimately, some cohabiting couples may choose to get married to ensure financial protection and stability.
Cohabitation in Switzerland is becoming more common, and couples need to consider the implications for their financial future. By taking proactive steps, such as establishing agreements and making additional contributions to retirement savings, cohabiting couples can protect their financial future.
