AVS in practice: real examples, advice and strategies to plan ahead

Real-life cases

Because a system is sometimes easier to understand through real situations, here are three typical profiles that show how the AVS actually works.

Martine, 65, an employee all her life in Lausanne

Martine has worked in Switzerland without a break since the age of 21. She has contributed for 44 full years and earned a steady average salary. The result: she gets the maximum AVS pension, that is 2 520 CHF a month. Her career is the perfect model for the system: length, stability, regularity.

Ismail, 63, who arrived in Switzerland at 40

Having spent part of his career abroad, Ismail was only able to contribute for 25 years in Switzerland. His pension is reduced proportionally, and comes to around 57% of the maximum amount. This underlines how important the length of contributions is in the AVS system.

Chantal, 66, a stay-at-home mother and then self-employed

Chantal interrupted her career to raise her children, then worked as a self-employed person. Thanks to the credits for childcare duties and a gradual regularisation of her contributions, she manages to obtain a decent pension, despite a fragmented career.

Tips to make the most of your AVS

The AVS (Swiss state pension, 1st pillar) is a strict but accessible system. A few simple habits will get the best out of it:

Ask for a statement of your AVS account every 4 to 5 years. It lets you check your entitlements and spot any gaps.
Fill in the missing years as soon as possible, going back no more than 5 years. It is often a financially worthwhile move.

> (Please note this is not a buy-back: you can make up missing AVS contribution periods within five years, provided you were insured with the AVS. These retrospective payments are tax deductible. After that time limit, retrospective payment is no longer possible.)

Keep contributing even if your activity stops. If you are unemployed, a student, on parental leave or abroad, it is often possible to contribute voluntarily so as not to penalise your future pension.
Assess the impact of early retirement. Leaving early at 63 significantly reduces your pension. Personalised advice makes it possible to calculate the consequences precisely.
Prepare what comes next with a 3rd pillar. Even a maximum AVS pension is not enough to keep a comfortable lifestyle in retirement. Additional savings are needed.

AVS, LPP, 3rd pillar: who does what?

Retirement strategy in Switzerland rests on three complementary levels. Here is a comparative summary:

Pillar	Purpose	Funding	Advantage
1st pillar (AVS)	Guarantee a minimum income	Compulsory contributions for the employer and the employee (pay-as-you-go)	Pension for life for all residents
2nd pillar (LPP)	Maintain the standard of living	Employer + employee (funded)	Capital or pension depending on the contract
3rd pillar	Free and tax-efficient top-up	Voluntary private savings	Flexibility and tax optimisation

None of these pillars is enough on its own. It is their combination that makes a calm retirement possible.

In 2025, should you be concerned about the AVS?

More than ever. The AVS system, essential though it is, does not change as fast as the cost of living or life expectancy. The maximum amount of 2 520 CHF may look comfortable, but it falls well short in regions with a high standard of living.

Planning ahead means

Measuring the impact of early or deferred retirement
Identifying the missing years in time
Taking family entitlements into account (surviving spouse’s pension, orphans)
Assessing your real future income, not the income you assume

The AVS is a foundation. But like any foundation, it is not enough on its own to build a solid retirement.

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: