More and more people are working part-time in Switzerland. However, it is important to be aware that, generally, if working hours are reduced, so are pension benefits. It is therefore recommended to think about the consequences of part-time work and the pension options at an early stage. Read our tips in this article!
Check for missing years of AHV contributions
Every employed person is required to pay at least CHF 503 to the AHV per year. In the case of married persons, the obligation to pay contributions is generally waived for one of the spouses if the other is in employment and pays sufficient contributions to the AHV. For each missing year of contributions, the old-age pension is reduced proportionally. The contributions due can be paid within five years. It is therefore worth checking whether you have any missing contribution years. To do this, ask the relevant AHV compensation fund for an extract from your "individual account".
Checking the pensionable salary
The pensionable salary is determined by the pension fund and corresponds to the gross annual salary minus the coordination deduction, which is currently CHF 25,095. This puts part-time workers with lower salaries at a significant disadvantage. However, it is possible to adjust the coordination deduction in proportion to the degree of employment and to mitigate the impact of this on the pension provisions. We recommend you to check your employer's position on part-time work and ask for a reduction in the coordination deduction.
Buying into the pension fund
Years with missing contribution in the pension fund or years with a lower income can be compensated for by voluntary purchases into the pension fund. This enables you to improve your retirement pension and reduce your tax burden.
Payments into Pillar 3a
Pay at least part of the maximum amount into Pillar 3a each year. Missed years cannot be made up and the payments can be deducted from your taxes. It is also important to choose your pension product carefully, taking the return into account.
