Old-age and survivors insurance in Switzerland: A Comprehensive Guide

In Switzerland, old-age and survivors insurance is a mandatory part of the country's social insurance system.

The Swiss government requires all employed individuals to contribute to the old-age and survivors insurance fund, which is managed by the AHV (Alters- und Hinterlassenenversicherung) or the Old-Age and Survivors Insurance.

This insurance provides a basic level of financial security for individuals in old age, as well as for their survivors.

The AHV is a pay-as-you-go system, meaning that current workers fund the pensions of current retirees.

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In Switzerland, the old-age and survivors' insurance, or OASI, is the main pillar of the retirement system. Its primary goal is to guarantee a minimum vital income for retirees or in case of the death of a spouse.

The retirement age in Switzerland is 64 for women and 65 for men.

Early retirement is possible starting from 58 years old, but the retirement amount will be decreased in proportion.

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Your OASI pension is calculated based on how many years you've contributed and your average income during your active life. The more you contribute, the higher your pension will be.

The OASI pension also takes into account non-lucrative tasks, such as education and assistance, which can increase your pension entitlement. You can use the OASI/DI calculator to get an estimate of your future pension.

Your OASI number, also known as the Swiss social security number, is a 13-digit number that will be with you for life. You can find it on your health insurance card or by contacting your employer's compensation fund in Switzerland if you're a cross-border worker.

Here's a breakdown of the OASI contribution rates:

Note that the contribution rate for OASI was increased from 8.4% to 8.7% in 2020, and the rate for APG / EO increased from 0.45% to 0.5% in 2021.

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In Switzerland, people without a lucrative activity are still required to pay a minimum annual contribution of CHF 503 for OASI.

This obligation applies to a wide range of individuals, including early retirees, students, and those receiving disability insurance pensions.

Beneficiaries of disease or accident indemnities are also included, as are globe-trotters and unemployed persons.

Additionally, divorced persons, widowers and widows, and spouses of retirees who haven't met the retirement age are subject to this obligation.

Spouses of persons working abroad are also included, as are individuals with a lucrative activity earning less than CHF 4,701 per year.

Those with a part-time lucrative activity earning less than half of the full contribution amount are also required to pay.

The Oasi pension you'll receive depends on how many years you contributed, your average income during your active life, and any participation in non-lucrative tasks like education or assistance.

To calculate your future Oasi pension, you can use the calculator made by the Information Centre Oasi/ DI. This calculator takes into account the duration of your contributions and your income level.

The Oasi pension amount varies depending on individual contributions and is adjusted annually. Anyone who has paid Oasi contributions for at least one year is entitled to Oasi benefits.

To give you a rough idea of how Oasi contributions work, here's a breakdown of the contribution rates:

Note that the contribution rate for Oasi was increased from 8.4% to 8.7% on January 1, 2020, and the APG / EO contribution rate increased from 0.45% to 0.5% on January 1, 2021.

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AHV alone is often not enough to maintain a person's previous standard of living after retirement. The pension fund, also known as occupational pensions or second pillar, is mandatory in Switzerland for employees who reach a certain annual salary threshold.

Contributions to pension funds are deducted directly from employees' monthly wages, with the employer covering at least half of the contributions. Self-employed individuals can choose to make contributions, but are fully responsible for their own contributions.

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The pension fund aims to maintain the usual standard of living in old age and thus supplements AHV benefits. This is why there is an occupational pension for employees, which is designed to provide a more comprehensive income in retirement.

In certain cases, the money saved in the pension fund can be distributed at an earlier time, such as if one starts a business, leaves Switzerland, builds a house, or buys an apartment.

You'll need to pay contributions to the OASI, which is 8.7% of your salary, split evenly between you and your employer. This contribution rate was increased from 8.4% in 2020.

As an employee, you'll pay 5.3% of your salary towards the OASI, DI, and APG/EO. Your employer will also pay the same amount.

If you're not in gainful employment, you'll still need to pay contributions, which depend on your pensions and net assets. The minimum contribution is CHF 514, and the maximum is CHF 25,700 per year.

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Self-employed people in Switzerland must pay AHV contributions, which is 10.6% of their salary. They often pay themselves an average wage in their sector to minimize their contributions.

To register for AHV, you'll need to submit a registration form, which can be done through the AHVeasy Portal. This is an important step to secure your pension rights.

Contributions are calculated on the basis of payroll, and you'll need to pay them quarterly or monthly if your payroll is above CHF 200,000. Late payments will incur a 5% default interest per year.

Here's a breakdown of the contribution rates for OASI, DI, and APG/EO:

To be entitled to a full pension in Switzerland, you must have paid AVS contributions without interruption from age 21 and have an average income of CHF 88,200.

Occupational pensions are a means of protection for you and your relatives. In old age, disability or death, the 2nd pillar is intended to make it possible to continue the accustomed standard of living in an appropriate manner.

Each missing year reduces the amount of your pension by 1/44.

You can voluntarily join a pension fund and pay contributions if you're not working, your annual gross salary is less than 22,680 francs, you're self-employed, or your employment contract is valid for a maximum of 3 months.

The 2nd pillar is intended to make it possible to continue the accustomed standard of living in an appropriate manner.

You can voluntarily join a pension fund and pay contributions.

To do this, you pay part of your salary into a pension fund. After retirement, you receive an additional retirement pension from the pension fund.

To be eligible for the 2nd pillar, you must be at least 17 years old and not yet of legal retirement age, and your annual salary must be more than 22,680 francs (as of 01.01.2025).

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In Switzerland, you're entitled to AHV benefits if you've paid AHV contributions for at least one year. The amount of the AHV pension varies depending on individual contributions and is adjusted annually.

AHV alone is often not enough to maintain your previous standard of living after retirement. This is why there's an occupational pension for employees, which is mandatory when a certain annual salary is reached. Contributions to pension funds are deducted directly from employees' monthly wages, with the employer covering at least half of the contributions.

The pension fund aims to maintain your usual standard of living in old age and thus supplements AHV benefits. If you're self-employed, you don't have to make contributions, but you can if you wish to and are fully responsible for your own contributions.

Here's a quick rundown of the key differences between AHV and pension fund:

Older people who don't have enough money to live on despite support from the AHV and pension fund are entitled to supplementary financial benefits. These must be applied for at the social insurance office in Glarus, and eligibility is clearly regulated.

In Switzerland, AHV alone is often not enough to maintain a person's previous standard of living after retirement.

The occupational pension, also known as the 2nd Pillar, is a mandatory supplement to AHV benefits.

Contributions to pension funds are deducted directly from employees' monthly wages, and employers cover at least half of the contributions.

Self-employed individuals don't have to make contributions, but can if they wish to and are fully responsible for their own contributions.

The money saved in the pension fund is distributed at the time of retirement in the form of a pension or a single payment.

In certain cases, the money can be distributed at an earlier time, such as if one starts a business, leaves Switzerland, builds a house, or buys an apartment.

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In Switzerland, the pension fund, also known as occupational pensions or second pillar, is mandatory but not state-owned. It's managed individually by private or public institutions.

The pension fund aims to maintain the usual standard of living in old age and supplements AHV benefits (first pillar). If you're not familiar with the concept, think of it like a safety net to ensure you can still live comfortably in your golden years.

Older people who don't have enough money to live on despite support from the AHV and pension fund are entitled to supplementary financial benefits (Ergänzungsleistungen). These benefits are funded by taxpayers and must be applied for at the social insurance office in Glarus.

To be eligible, you must clearly meet the regulated requirements. The supplementary benefits are designed to provide additional financial support to those who need it most.

Here's a brief summary of the supplementary benefits:

If you're interested in learning more about supplementary benefits, you can check out the brochure "Die Ergänzungsleistungen" (DE) or watch an explanatory film by Pro Senectute Switzerland.

As a self-employed person in Switzerland, you're responsible for registering for AHV on your own initiative. This means you need to be well-informed about the obligations and rights associated with AHV.

To avoid complications and possible back payments, it's essential to register in a timely manner. You can find more information on the registration process for self-employed individuals on the Ausgleichskasse St.Gallen website.

If you're self-employed, you'll need to pay social security contributions, which are divided between you and your employer. Your employer pays at least half, while your part will be deducted directly from your salary and paid into the pension fund together with your employer's part.

The contributions are calculated based on your gross salary, and you'll need to earn at least 22,680 francs per year with a single employer to be insured. If you have several jobs but don't earn enough from any of them, you won't be insured, and you'll need to register directly with the Ausgleichskasse St.Gallen.

Here's a breakdown of the social security contributions you can expect to pay:

If you're not working, you'll need to register with the Ausgleichskasse St.Gallen on your own responsibility and pay the full contributions, which is at least the fixed minimum contribution of 530 francs per year.

As a self-employed individual, you'll need to register with the Ausgleichskasse St.Gallen on your own initiative, and you can find more information on the registration process on their website.

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The OASI number is a crucial piece of information for anyone living in Switzerland, and it's good to know where to find it. You can find your OASI number on your health insurance card if you're insured with a Swiss health insurance company.

If you're a cross-border worker, you'll need to contact your employer's compensation fund in Switzerland to obtain your OASI number. This is an important step in setting up your old-age and survivors insurance.

Your OASI number is a unique identifier that will accompany you throughout your life in Switzerland.

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