On 25 September 2022, Swiss voters approved the reform to stabilize the AHV (AHV 21), which has been in force since 1 January 2024. The focus of this decision was on raising the reference age for women to 65 (previously known as the retirement age). In addition to this measure, numerous other amendments were also introduced, including two planning options, which we will look at in more detail:

Retirement in stages
One important change is the option of retiring from the AHV in steps between the ages of 63 and 70. Furthermore, all pension fund insurance have been obliged to create the possibility of withdrawing pension fund assets in up to three stages. By reducing work activity, e.g. first to 70% and then to 40%, pension fund payments can also be spread over several years, thus breaking the tax progression. Further information, in particular the amounts of the reduction or increase in pensions, can be found at: https://www.ahv-iv.ch/p/3.04.e

However, earlier retirement and earlier withdrawal of the AHV pension do not affect the obligation to pay AHV-contributions. Contributions for persons not gainfully employed are still liable to pay AHV-contributions up to the reference age.

Pension contributions even after reaching the reference age
If you continue to work after the reference age, AHV contributions are still due. Previously, these were purely solidarity contributions, i.e. they had no effect on the AHV pension, which was calculated when reference age was reached. With the new AHV reform, these contributions can also be used to build up a pension. The pension can now be recalculated once.

If, for example, you stop working at the age of 68, it makes sense to request a recalculation if you assume that you will no longer pay any significant AHV contributions. This income earned after reaching the reference age could result in an increased AHV -pension payment, if you have not yet received the maximum amount. There is also an opportunity to close existing contribution gaps. Ask for an advance calculation before you request a recalculation; this will provide you with the information you need: https://www.ahv-iv.ch/p/3.06.e

Requirements:

• You have not yet reached the age of 70 on January 1, 2024
• The annual earned income after reaching the reference age is at least 40% of the previous average annual earned income
• The annual AHV contribution paid corresponds to the minimum contribution (2024: CHF 514)

The increased payment based on the recalculation is possible at the earliest one month after the application. There is no retroactive payment. Further information can be found in the information sheet: https://www.ahv-iv.ch/p/3.08.d

Voluntary renunciation of the exemption amount
It is now also possible to waive the application of the AHV-exemption (CHF 1,400/month) in order to pay contributions on the entire income. This will be of particular interest to people who have contribution gaps or years with low contributions. You can request an advance calculation of your AHV pension so that you can assess whether it is worth.

The AHV reform gives us various options for withdrawing pension benefits earlier or later and paying more or fewer contributions. Good retirement planning is becoming increasingly important. We will be happy to help you with this.

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