Retirement
Retirement planning & insurance: how the pieces fit together
A clear framework across pillars, risk cover, and long-term planning.
Many people separate retirement planning and insurance, but they work together. If you cover risks while building long-term retirement assets, you gain stability. This overview shows how the building blocks interact.
1. The three pillars as a foundation
Public retirement (pillar 1) secures a minimum, occupational benefits (pillar 2) complement it, and private retirement (pillar 3) adds flexibility.
Only the combination creates a stable base.
- Pillar 1: basic security
- Pillar 2: maintain living standards
- Pillar 3: individual top-up
2. Risk cover as a protective layer
Insurance covers risks like death, disability, or illness. Without that layer, retirement plans may not hold up in a crisis.
Clarify risk first, then save long term.
- Disability: income replacement
- Death: family protection
- Illness/accident: financial stability
3. Identify retirement gaps
Many households underestimate gaps. An analysis shows where benefits or pensions are too low.
Part-time work or self-employment often creates gaps.
- Review pillar 1 and pillar 2 statements
- Consider part-time and career breaks
- Use private planning to close gaps
4. Life stages set priorities
Career start, family formation, and retirement change requirements. Plans should be adjusted regularly.
What makes sense at 30 can be wrong at 50.
- Early: prioritize risk cover
- Mid: intensify wealth building
- Late: stability and withdrawal planning
5. Taxes and flexibility
Retirement planning can bring tax advantages, especially in pillar 3a. At the same time, you need flexibility to adapt to change.
The right mix is key.
- Use pillar 3a for tax advantages
- Use pillar 3b for flexibility
- Plan liquidity reserves
Retirement quick-check
Conclusion
Retirement planning and insurance are not opposites, they’re complementary. If you cover risks and plan long term, you gain financial stability and freedom to act.