Introduction
The Swiss pension system rests on an architecture of three pillars. The first, the AVS – Assurance Vieillesse et Survivants – is the compulsory base of the whole system.
It is funded by the contributions of everyone working in Switzerland, and its purpose is to guarantee a minimum income in retirement, but also to cover certain family risks (death, orphanhood, widowhood).
But be careful: while it is the foundation of the system, it is far from enough on its own. Many people find out a little too late that the AVS covers only a modest fraction of their real needs.
Hence the value of understanding how it works, its ceilings, its calculation rules and its limits
What is the AVS?
The Assurance Vieillesse et Survivants (AVS) is a compulsory scheme, introduced in 1948, which rests on the principle of solidarity between generations. It works on a pay-as-you-go basis: today’s working population funds the pensions of today’s retirees.
It applies to everyone living or working in Switzerland, whether they are
- Employees (automatic contributions from the age of 18)
- Self-employed (contributions on declared net income)
- Or without gainful employment (obligation to contribute individually from the age of 21*, with an annual minimum*)
The AVS pays a monthly life annuity until the beneficiary dies, but it does not fully replace earned income. It is a base, to be topped up by other pillars.
Note that non-working spouses are exempt from contributing, if the working spouse pays a contribution equal to at least twice the minimum contribution, that is 1060 CHF.
In addition, foreign civil servants of international organisations are released from the obligation to be insured.
*From 1 January of their 20th birthday
*a minimum of 530 CHF
How much can you receive?
The amount of the AVS pension depends on three main factors:
- The number of years of contributions, with a maximum of 44 years for men as well as for women (from 2028).
- The average annual salary, worked out from the whole career.
- Any credits for childcare or care duties.
In 2024, the ceilings are as follows:
| Status | Maximum monthly amount |
|---|---|
| Single | 2 520 CHF |
| Married couple | 3 780 CHF (shared ceiling) |
It is important to note that even a high income does not guarantee the maximum pension if the 44 years of contributions are not complete. Any gap leads to a proportional reduction of the pension.
At what age can you retire
- Statutory age: 65 for men and for women from 2028
- Early retirement possible: up to 2 years earlier, with a reduction of the pension
- One year early: -6.8
- Two years early: -13.6
- Deferral possible: up to 5 years, with a bonus on the monthly pension proportional to the length of the deferral.
Note that from 2026, a 13th AVS pension will be paid every year in December, slightly improving the level of cover.
Special case: gradual transition for women
A transitional mechanism applies to women born between 1961 and 1969, as part of the harmonisation of the statutory age at 65.
Several measures have been put in place:
- Lifelong pension supplement for those who retire at the new reference age
- Reduced penalties in the event of early retirement
| Year of birth | AVS retirement age |
|---|---|
| Up to 1960 | 64 years |
| 1961 | 64 years + 3 months |
| 1962 | 64 years + 6 months |
| 1963 | 64 years + 9 months |
| From 1964 | 65 years |
The advantages of the 1st pillar
Guaranteed basic security
The purpose of the AVS is to guarantee a minimum income to everyone, whatever their professional or family history. It is a basic protection, non-contributory, for some people, as soon as they meet the criteria.
Family cover
The AVS also pays:
- A widow’s or widower’s pension
- An orphan’s pension for children up to the age of 18 (or 25 if they are still studying or are disabled)
Universal accessibility
Even without any professional activity, people resident in Switzerland can voluntarily join an AVS fund and pay a minimum contribution so as not to lose their entitlements.
But also limits to weigh up carefully
A very limited pension level
In practice, the AVS pension covers on average only around 20% of the last earned income. That means that without a 2nd pillar (LPP) or personal savings (3rd pillar, property, other investments), the standard of living drops considerably in retirement.
A pension conditional on a full Swiss career
Only people who have contributed for 44 years can hope to receive the maximum pension. Any interruption (studies, expatriation, undeclared work) creates gaps, which have to be anticipated and, if possible, put right.
The impact of undeclared periods
A stay abroad, a period of unpaid unemployment, or years without any declared activity can cause a significant loss of AVS entitlements. It is therefore essential to ask regularly for your AVS career statement to spot and fill any such gaps within the time allowed (5 years maximum).
Need personalised support?
The AVS is a fundamental pillar of the Swiss system, but it is not enough to guarantee a comfortable retirement. A good retirement strategy rests on planning ahead, regular contributions, the way the pillars complement each other and reading your entitlements correctly.
At WYP Consulting, we support you to:
- Read and understand your AVS contribution history
- Identify your missing years or the gaps to fill
- Project the amount of your future pension
- Build a complete strategy bringing together AVS, LPP and 3rd pillar
Book an appointment with a WYP Consulting adviser
A free first conversation with no commitment will let you secure your path and act in time.
