Participants
53 companies from different sizes and industries participated
Industry and size
Most participants are international companies with 500 – 10,000 employees in CH
Current offering
46% of participating companies offer a 1e pension plan to their employees
Future offering
29% of the companies who currently do not offer 1e plans intend to introduce one
The Swiss 1e pension plan market continues to see steady evolution. In our 2024 study—the sixth iteration—we observed a notable 13% growth in the number of insured members in 2023, with approximately 46,000 participants by the end of the year. While this represents less than 1% of the total Swiss insured population, the market is limited to a niche group of high earners, roughly 520,000 individuals who earn more than CHF 132,300 annually. Currently, 9% of these eligible individuals are enrolled, leaving room for expansion.
In fact, around 1% of Swiss registered companies now offer 1e plans to their employees, signaling continued growth potential.
As we delve deeper into the study, we are excited to introduce a fresh perspective by incorporating insights from both companies and insured members.
We asked businesses, whether they offer 1e plans or not or whether they foresee to provide one in the future as well as their views on these type of high-earner pensions.
Additionally, we partnered with company and multi-employer 1e pension funds to gauge member satisfaction. We explored the perceived advantages and drawbacks of 1e plans, and evaluated how insured members perceive investment risks within these plans.
Enrichen your understanding of the evolving 1e pension landscape
Learn about the insured members' views
Key findings from corporate views on 1e pension plans
4 key findings
- International companies ahead in 1e market: The decision to offer a 1e pension plan varies across companies, depending on factors like their risk appetite, strategic goals, and employee interest. International companies, in particular, tend to lead the way in adopting these plans, often driven by their global experience and the need to provide more flexible and personalised retirement solutions for their diverse workforce.
- No clear industry trend: While there’s no dominant industry trend, Financial Services and Manufacturing and Trade are leading among companies offering 1e pension plans in this survey.
- Driving factors: Main reasons for 1e plan implementation are reducing employer risk as well as offering more flexibility to employees.
- Hindering factors: Main reasons for not implementing a 1e pension plan is complexity and high risk for employees or no interest from employees
Participants split in industry & size
In our 1e companies's perspectives survey, 53 companies from a wide range of industries and sizes participated. The largest representation came from the Consumer goods, Financial services, Manufacturing and Trade, and Professional services sectors (including Legal and Consulting). Most of these companies employ between 500 and 10,000 people in Switzerland and are international companies.
Finding #1 International companies ahead in 1e market
Current offering
46% of the participating firms already offer a 1e pension plan to their employees. The majority of these companies have an international footprint. 87% offer them to all employees regardless of job level once they reached the defined salary threshold. 9% only offer 1e plans to middle management or higher. 13% limited the plan to upper management.
Only 29% established their own 1e pension fund. 71% affiliate their individual top-up pension plan separately with a multi-employer pension fund.
Future offering
54% of the participants do not offer a 1e pension plan. However, 29% thereof intend to implement a 1e solution within the next few years. 71% do not want to implement a 1e pension plan due to various reasons.
Finding #2 No clear industry trend
Key industries among companies offering 1e pension plans in this survey are:
This is similar with the insured member survey results, where Financial services (21%) and Manufacturing and Trade (18%) are leading the way, closely followed by Professional services (16%).
The two leading industries Financial services (25%) and Manufacturing and Trade (25%) are also leading the way when it comes to future implementation of 1e plans.
Finding #3 Driving factors
Primary reason for implementing 1e plan: reducing employer risk
Among the 46% of participating firms currently offering a 1e pension solution, the primary reason for implementation was to reduce employer risk. Their focus was on mitigating pension management risks and lowering pension obligations, which could be significant for international firms with larger employee populations in Switzerland.
Offering greater flexibility to their workforce also was a key factor, aligning with evolving societal needs. Further reasons raised include market trends and the potential for better long-term outcomes for employees.
Driving factor to implement a plan in future: employee’s interests in focus
29% of companies in our survey that don't yet offer a 1e pension plan intend to introduce one in the coming years. The key drivers include employee interest (63%), greater flexibility (63%), and the shift of responsibility to employees, which is expected to enhance engagement (63%).
Additionally, 13% of firms are looking to reduce pension obligations under IAS 19 or US GAAP, as Swiss pension plans are treated as defined benefit plans, whereas 1e plans can be classified as pure defined contribution plans, transferring the risk entirely to employees.
Finding #4 Hindering factors
Main reason for not implementing a 1e plan: complexity
54% of the participating companies do not currently offer a 1e pension plan, with 71% thereof have no intention of introducing one in the future. The primary reason stated is complexity. Complexity with offering 1e plans arises from having to manage at least two separate pension schemes with different pension funds, which can reduce transparency and therefore increase complexity for insured members to understand pension benefits.
Another significant concern for employers is the higher risk placed on employees, as these plans shift the burden of investment risk from the collective to the individual level. Shifting risk to employees is controversial as it is not fully aligned with the traditional Swiss pension model, which is built on risk solidarity and collective risk-sharing, particularly when it comes to investment risks and ensuring minimum legal conversion rates.
