Pension provision is therefore not just about preparing for your retirement; it also helps to safeguard your family and loved ones in the event of unforeseen circumstances. Faced with all these questions, it is not always easy to distinguish between the priority measures to take and the cover already in place.
Groupe Mutuel’s insurance and pension advisers can help you analyse your family situation, understand the implications of your marital status and identify the right solutions to protect your partner and loved ones.
Cohabitation or marriage: what changes for pension provision?
21 October 2026 | Comment(s) |
Luca Utzeri
Julien and Sarah, aged 38 and 36 respectively, have been living together for nine years, have a two-year-old daughter and own a flat which they bought jointly. They are not married, but as far as they are concerned, “it’s exactly the same thing”. In the eyes of the law, however, they are considered to be cohabiting partners. And this distinction should not be overlooked when it comes to pension provision..
Whilst this difference may seem minor when all is well, it becomes crucial when an unforeseen event occurs (disability, death, separation or divorce). Pension provision for cohabiting or married couples: here’s what you need to know to prevent a personal setback from also turning into a financial problem.
Why is pension provision so important for a couple?
Nobody likes to imagine the worst. Yet, in the event of disability, serious illness or death, the consequences for the family can be considerable. Who would pay the bills if one partner could no longer work or were to die? How would the family home be kept? Would the remaining income be enough to maintain the household’s standard of living and provide for the children?
- A financial planning strategy helps ensure that an ordeal that is already emotionally difficult does not also turn into a financial hardship.
The first pillar: the AVS does not recognise cohabiting partners
The AVS only recognises marriage and registered partnerships. Unmarried partners are therefore not entitled to any survivor’s pension, regardless of how long they have lived together. A married spouse, on the other hand, may be entitled to a widow’s or widower’s pension if the legal conditions are met, and children may receive an orphan’s pension. Living together for five, 10 or 30 years does not, therefore, make a cohabiting partner a spouse in the eyes of the AVS.
- In our example, if Julien or Sarah were to die, the surviving cohabiting partner would therefore receive no benefits from the AVS. Their daughter would be entitled to an orphan’s pension, which is, however, intended for the child and not to replace the lost income of the deceased parent.
And what about retirement?
On retirement, however, the AVS cap may work against married couples. Whilst cohabiting partners each receive their own AVS pension calculated separately, married couples receive the combined total of both old-age pensions, capped at 150% of the maximum individual pension.
In 2026, a full AVS pension ranges from CHF 1,260 to CHF 2,520 per month, to which a 13th pension, paid in December, is now added. The total amount of pensions for a married couple is therefore capped at
CHF 3,780 per month. Two cohabiting partners each receiving the maximum pension could therefore, between them, receive a higher amount than a married couple in a comparable situation. Marriage offers better automatic protection in the event of death, but not necessarily a higher total AVS pension in retirement.
- In the event of divorce, an AVS splitting arrangement applies to married couples. The incomes of both spouses during the years of marriage are added together and then divided equally between their individual accounts.
The second pillar: different levels of protection depending on marital status
Under the second pillar, the surviving spouse is entitled to the benefits provided for under the LPP if they meet the legal requirements. A cohabiting partner is entitled to these benefits only if the pension scheme’s rules provide for them and if the specified conditions are met. These generally include:
- An uninterrupted period of cohabitation of at least five years prior to the death;
- The care of one or more children of the couple;
- Registration of the partner with the pension fund, if required by its rules
The case of vested benefits
Where second pillar assets are held in a vested benefits account or policy, a specific order of beneficiaries applies. Where relevant, it is worth considering transferring the vested benefits to the current employer’s pension fund or retaining them in a vested benefits foundation, depending on the individual’s retirement objectives.
What happens in the event of separation?
In the event of a divorce, second pillar assets accrued during the marriage are, in principle, divided between the former spouses. This mechanism is designed, in particular, to protect the person who reduced their working hours to look after the family. When an unmarried couple separate, each retains their own LPP assets, even if one of the partners has significantly reduced their working hours for several years.
Pillar 3a: spouses and cohabiting partners as beneficiaries
In Pillar 3a, the order of beneficiaries is set out in the OPP3 Ordinance: the spouse or registered partner takes priority. In their absence, a cohabiting partner may be included amongst the beneficiaries if they meet the legal conditions, notably five years of uninterrupted cohabitation prior to the death or the provision of maintenance for a child in common. From 1 June 2027, children may be designated as priority beneficiaries. Unmarried partners would therefore be well advised to declare their relationship in writing to each bank or insurance company with which they hold a Pillar 3a scheme.
For Pillar 3b, beneficiaries may be designated freely. However, it is important to be mindful of any inheritance and tax implications that may apply. For contracts with a savings component, inheritance law may, in particular, influence the desired outcome. It is advisable to review the beneficiary clauses regularly, particularly following:
- a birth;
- a marriage;
- a divorce or separation;
- the purchase of a home;
- a change of partner;
- taking out a new pension plan.
Cohabitation and inheritance in Switzerland
Under Swiss law, a cohabiting partner is not considered a legal heir. Without a will or a succession agreement, they therefore receive nothing from their partner’s estate. The spouse or registered partner and the deceased’s close relatives, in the order prescribed by law, are the legal heirs.
In our example, Julien and Sarah own a flat in equal shares. If Julien dies, Sarah retains her own share. However, Julien’s share would form part of his estate, and Sarah might then find herself as a co-owner of the property alongside the heirs, or have to find the financial means to buy out the deceased’s share. A will or a succession agreement allows a cohabiting partner to be favoured, subject to the statutory reserves provided for by law, particularly since the revision of inheritance law on 1 January 2023.
As regards inheritance tax, the treatment varies depending on the canton and the family relationship. Whilst spouses are generally exempt, cohabiting partners may be subject to varying levels of taxation depending on the canton.
Death following an illness or accident: what is the difference?
In the event of death due to illness, benefits for dependants are primarily provided under the AVS and the LPP. In the event of death resulting from an accident or an occupational illness, accident insurance (LAA) may pay survivors’ benefits to supplement those provided by the AVS. Benefits under the LPP also remain applicable, but are coordinated with those under the LAA. Depending on the family and employment situation, the financial protection for dependants can therefore differ significantly between a death due to illness and a death due to an accident.
The benefits of life insurance
Term life insurance, or “pure risk” insurance, pays out a defined lump sum to the named beneficiary in the event of death, depending on the terms of the policy. It can prove particularly useful when a couple:
- is paying off a mortgage;
- relies heavily on the income of one partner;
- has young children;
- wishes to enable the surviving partner to keep the home;
- finds a gap in the benefits provided by the AVS or their pension fund.
Married couples or cohabiting partners: what happens in the event of disability?
Unlike in the event of death, marital status plays a lesser role in the event of disability. Benefits from the AI, the pension fund or the LAA (in the event of disability caused by an accident) depend mainly on the insured person’s circumstances and can offset part of the loss of income.
- For both married couples and cohabiting partners, it is therefore essential to check for any gaps in income.
Unmarried couples: the five steps that can make all the difference
These few targeted measures can already help you, as cohabiting partners, to significantly improve the protection of your relationship and your family:
1. Pension fund regulations
Request a copy of your pension fund regulations and carefully check the partner clause. Submit a written declaration if this is required.
2. Beneficiaries under the third pillar
Review and update the beneficiary clause for each third pillar contract.
3. Will or inheritance agreement
Consider drawing up a will or a succession agreement to organise the transfer of your estate within the limits set by law.
4. Cohabitation agreement
Draw up a cohabitation agreement setting out arrangements for accommodation, living expenses and jointly acquired assets. Please note that this does not replace a will or a beneficiary designation with your pension fund, but it does help to clarify the couple’s financial arrangements.
5. Life and disability insurance
Consider taking out life or disability insurance, particularly if you have children or a joint mortgage, to safeguard your financial future.
Key points on pension provision for cohabiting partners and spouses in Switzerland
In terms of financial provision, whilst marriage offers greater automatic legal protection, cohabitation requires additional steps to protect your partner. For Julien and Sarah, the issue is therefore not simply a matter of choosing a lifestyle based solely on pension or tax calculations, but rather of understanding the consequences of their chosen status and adapting their financial planning strategy, whether they are cohabiting or married.
Pension provision for married and cohabiting couples: an overview
Is a cohabiting partner entitled to a survivor’s pension?
A cohabiting partner is not entitled to an AVS survivor’s pension or a spouse’s pension under the LAA. Depending on the terms and conditions, however, the pension fund may provide benefits for an unmarried partner.
After how many years are you considered to be in a cohabiting relationship?
No specific duration of cohabitation confers the rights of a spouse. Some pension funds and the rules under Pillar 3a stipulate an uninterrupted period of cohabitation of five years; however, this duration does not entitle the partner to an AVS survivor’s pension or an automatic right to inheritance.
How do you designate your cohabiting partner as a beneficiary under the second pillar?
You must consult your pension fund’s rules and, if they allow for it, submit a written declaration of partnership.
Who inherits from Pillar 3a in the event of death?
For Pillar 3a, the order of beneficiaries is governed by OPP3. The spouse or registered partner takes priority. Next come the children and/or the cohabiting partner, if they meet the conditions, followed by other legal heirs. For Pillar 3b, the choice of beneficiary is unrestricted, subject to inheritance law.
Does a cohabiting partner automatically inherit?
No, a cohabiting partner is not a legal heir. To pass on part of your estate to them, you must specifically provide for this in a will or an inheritance agreement, whilst respecting the statutory minimum shares.
Is marriage always more advantageous for pension provision?
Marriage offers greater automatic protection in the event of death, but the total AVS pensions for a married couple are capped. Furthermore, a divorce results in the splitting of AVS income and, in principle, of the LPP assets accrued during the marriage.
What happens when an unmarried couple separate?
Each person retains their own assets (AVS, second and third pillars). The division of the home, assets and debts depends on ownership rights, the contracts entered into and the supporting documents available.
Should a cohabitation agreement be drawn up?
It is not compulsory but is particularly useful for clarifying the sharing of expenses, ownership of assets, the financing of the home and the consequences of a separation. It must be coordinated with the will, beneficiary clauses and declarations submitted to pension institutions.
Article updated on 21 October 2026
