November 11, 2025 · Research
When flexibility leads to a pension gap: HWZ study sheds light on the downsides of modern forms of work
Flexible working models promote freedom and work-life balance – but they also carry risks. A new HWZ study shows that many employed people in Switzerland remain below the pension fund threshold and are therefore inadequately insured for old age.
Flexible forms of work such as part-time work, multiple jobs, or on-call work are characteristic of the Swiss labor market. They make it easier to reconcile work, family, and further education. However, people who work in several small jobs or earn little often do not reach the pension fund entry threshold and are thus excluded from the second pillar.
A study conducted by the HWZ in spring 2025 on behalf of the Swiss Commercial Association (Kaufmännischer Verband Schweiz) has provided the first detailed insights into which groups are particularly affected. The results show that women, part-time employees, multiple job holders and people with on-call work are disproportionately often below the threshold of CHF 22,050. The risk is most pronounced in the retail sector, but is also clearly evident in the commercial sector.
Innovative data basis and research methodology
To realistically reflect the complex employment situations, the HWZ research team relied on the most recent data from the Swiss Labor Force Survey (SAKE). This provides a differentiated record of employment forms, but – and this was the methodological challenge – it does not contain a separate income figure for each activity. This means that the pension fund entitlement cannot be directly determined: the threshold for joining the pension fund is not based on a person’s total annual income, but on the income from each individual job. However, many people in employment are engaged in several activities at the same time – their total income may thus be above the threshold, while individual jobs may still be below it.
The HWZ solved this methodological problem with a calculation method developed in-house that consistently reflects income and employment rates across several activities. This made it possible for the first time to precisely determine whether a person is above or below the pension fund threshold. The research team then formed analytical comparison groups to systematically investigate the relationships between forms of work, income and pension provision.
Relevance for the economy and society
The HWZ study provides new empirical insights into the Swiss working reality. It shows how closely work form, income and retirement provision are linked to each other and what structural risks are associated with increasing flexibility.
In this way, the HWZ makes an important scientific contribution to the discussion on fair and sustainable retirement provision. By conducting research that addresses socially relevant issues and takes new methodological approaches, the HWZ actively contributes to developing solutions to the challenges of the modern labor market.
