The pensions system in Switzerland is based on the 3-pillar model. The Old-Age and Survivors’ Insurance (OASI) plus Disability Insurance (DI) make up the 1st pillar of the social security system. Everyone living or working in Switzerland is insured and must pay contributions. Even those not in gainful employment, such as students, for example, have to pay OASI contributions from the age of 20.
For those in employment, the following applies: 5.125% of their wages are paid directly into OASI each month. The employer also pays 5.125%.
For those not in gainful employment with low or no income, different conditions apply depending on their situation.
From the pension age of 64 or 65, you receive a monthly pension between CHF 1,175 and 2,350 from OASI. The amount depends on how much you have paid in. Any gaps, for example as a result of a lengthy period spent abroad, are also taken into account. For these you must expect a pension cut of at least 2.3%. However, any contribution gaps can be filled by payments within five years. Check your gaps by requesting an overall statement from OASI.
More information can be found at www.bsv.admin.ch
As your maximum OASI pension can be CHF 2,350 at most, you should consider retirement planning in good time. Helvetia will assist you with any questions you may have relating to retirement pensions and, together you, plan for the period after retirement, so that you can maintain your usual standard of living and enjoy your time without a care.