Liechtenstein’s Pension System: Liechtenstein

The paper analyzes Liechtenstein's three-pillar pension system, assessing its structure, funding mechanisms, sustainability and adequacy challenges. Liechtenstein's pension system operates on a three-pillar framework comprising public pensions (AHV-IV-FAK), mandatory occupational schemes, and voluntary insurance. With reserves exceeding 150 percent of GDP, the system ranks third globally in accumulated savings. Despite robust financial health and built-in intervention mechanisms, demographic projections indicate Pillar I assets will decline below statutory minimums by 2043. The research concludes that population aging and increased life expectancy will necessitate policy adjustments such as raising retirement ages or increasing contribution rates to ensure the system's long-term viability.