Pension provision for married couples and families
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Pension Provision for Married Couples and Families

First, you fall in love. Next, you get engaged. Then you get married, and before you know it, you – like many people – have started a family. That is what makes it important to start thinking about pension provision as early as possible so that your loved ones have financial security when you retire, have an accident, or die.

Marriage is a popular living arrangement, one that often leads to a family with one or more children. Newlyweds, young families, and seasoned couples often put off the subject of pension provision and financial security for too long – for themselves, their partners, and their descendants. Therefore, those who get married and have children or are already living as a family should begin their pension provision and wealth planning as soon as possible. As a married couple or family, you have specific needs as well as special rights and obligations. It is worthwhile to lay a foundation for pension provision early on and save up for retirement. Everybody involved benefits. 

What Should You Keep in Mind When Setting Aside Pension Provisions for Your Spouse and Family?

Switzerland's Federal Old Age and Survivors' Insurance (AHV) system pays pension benefits when people reach normal retirement age. Once both spouses retire, the combined total of the individual pensions must not exceed 150% of the maximum pension. In the event of death, a surviving spouse's pension will be paid out if certain conditions are met. Any children up to the age of 18, or 25 if in education/training, will receive an orphan's pension. In the event of the wife's or husband's death, he or she receives a surviving spouse's pension or single lump-sum payment under the 2nd pillar of employee benefits insurance. If there are children, they will receive an orphan's pension. Details about these pensions are provided on the pension fund statement and in the fund's regulations. Individuals can use private pension provision (2nd pillar) to give their spouses and children security upon the individual's death. The third pillar is more flexible: Those wishing to give their spouse or children financial security can take out life insurance with death coverage.