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When you retire, you receive an AHV pension (1st pillar), your occupational pension (2nd pillar) in the form of annuity payments or a lump sum payment, and your private pension (3rd pillar) if you contributed to one.
The amount of your AHV pension depends on the number of years you contributed, on your income and on any credits for child-rearing and care. In order to receive a full pension, you must contribute to the AHV pension continuously from the age of 21 up until the statutory retirement age, which is 65 for men and 64 for women. For more information about the effects of a gap in contributions on the amount of the AHV pension.
An ordinary annuity of CHF 1'170 a month is guaranteed to anyone with a full contribution period and whose average annual income does not exceed 14'040 CHF. Annuity increases on the basis of your average annual income and is capped at CHF 2'340 a month (double the minimum pension), if your average annual income exceeds CHF 84'240.
The combined income of both spouses accrued during the years of their marriage is equally divided and allocated to each spouse when:
The sum of the individual annuities of a couple may not be greater than 150% of the maximum pension (CHF 3525 a month). If this limit is exceeded, the individual annuities are reduced accordingly.
You can estimate your future AHV pension online or contact your compensation office to obtain a free estimate of your pension. In either case, the estimate is an approximate calculation based on your current information and on the legal provisions in force at the time. Ultimately, only the actual calculation of your pension at the time you reach retirement age is legally valid.
Occupational benefits are calculated on the basis of the contributions you have accumulated during your working life. The regulations of your pension fund are used to calculate the statutory benefits you are eligible to receive (benefits must be at least equal to or greater than the minimum benefits set by the Occupational Old Age, Survivors’ and Invalidity Pension Provision - BVG). The cumulative amount (also known as ‘retirement savings’) depends on your salary and on the terms and conditions of the pension schemes to which you paid your contributions. Benefits are paid as a retirement pension and/or a lump sum.
The pension you receive is a percentage of your retirement savings. This percentage, called a ‘conversion rate’ is defined by law. The minimum conversion rate for mandatory occupational pension savings is set at 6.8% (for men and women of regular pensionable age).
An example to calculate your pension:
If during your life you have accumulated a retirement savings of CHF 400,000 and the BVG conversion rate is 6.8%, your annuity will amount to CHF 27,200 a year, or CHF 2,267 a month.
If you joined a private pension, you will receive additional capital for your retirement. Contact your third pillar scheme for the amount of money saved and the terms of withdrawal.