Pension Provision for Cohabiting Couples
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Pension Provision for Cohabiting Couples

If you are living together as a couple and want to make your shared dreams a reality, you should also give proper consideration to your pension provision. Cohabitation offers more flexibility, but also less financial security. Therefore, you should start thinking as soon as possible about pension provision for your old age and for your nearest and dearest, and start saving.

Cohabitation means that people can fulfill their lifelong dreams together without the regulations of a marriage – as a young or older couple, with or without children. Although cohabitation is a flexible domestic partnership, it is also not legally standardized. Private pension provision is therefore all the more important for cohabiting couples. It is also advisable to think about retirement at an early stage – with individual pension planning which guarantees financial support in old age and in the case of a risk event.

What Should Cohabiting Couples Bear in Mind in Terms of Pension Provision?

In the case of cohabitation, each partner is treated as a single person. Therefore, both partners receive their full AHV retirement pension in their old age. Upon the death of the partner, there is no entitlement to benefits from the first pillar. In the event of death, any children you have (up to the age of 18, or 25 if in education/training), will receive an orphan's pension.

In the event of death, under the second pillar the cohabiting partner will receive no benefits, or a partner's pension or a lump-sum payment. Because cohabitation is not recognized by law, it must be checked whether and in what circumstances the pension fund regulations provide for the partner as a beneficiary and what conditions need to be met.
The third pillar is suitable for providing security for cohabiting partners or children: In this case, it can be worthwhile taking out a life insurance policy with death coverage.