AHV Reform (AHV 21)

The first phase of the AHV reform (AHV 21) came into effect on 1 January 2024. Among other things, it facilitates a more flexible transition from working life into retirement. Below is a summary of the resulting changes, along with a selection of other important updates.

Since the beginning of 2024, insured persons have been able to plan their retirement more individually. In particular, they can now choose to draw part of their old-age pension under the Old-Age and Survivors' Insurance (AHV) and occupational pension scheme in advance, while postponing the remaining portion.

Flexible Reference Retirement Age

Pensions can now be claimed between 1 and 24 months before reaching the reference retirement age or deferred by 12 to 60 months after reaching it. Partial early withdrawals or deferrals (between 20% and 80%) are also possible.

If the pension is drawn early, the pension amount is reduced depending on the length of the advance withdrawal. The reduction rates range from 0.6% to 13.6%. Women belonging to the transitional generation (born between 1961 and 1969) benefit from more favourable reduction rates.

During the period of early retirement, contributions to the AHV must continue to be paid, with a minimum annual contribution of CHF 514. In some cases, these additional contributions may result in a slight increase in the pension once the reference retirement age is reached.

If the pension is deferred, the pension amount increases by 5.2% to 31.5%, depending on the length of the deferral.

Increasing Your Pension

After reaching the reference retirement age, employees may continue working until the age of 70 and use the additional contributions paid during this period to increase their pension.

Continuing to work also provides either supplementary income alongside the pension or the opportunity to defer pension payments and thereby receive a higher future pension.

The existing monthly exemption of CHF 1,400 remains in place. Earnings above this amount are subject to AHV, IV, and EO contributions. However, employees who have reached retirement age are no longer required to contribute to unemployment insurance and are no longer covered by it.

A new feature of the reform is the option to voluntarily waive the CHF 1,400 contribution exemption.

Vested Benefits

Vested benefits now become payable upon reaching the reference retirement age. Deferral is only possible if the individual continues to work, for a maximum of five years. A transitional period of five years applies.

Hypothetical Income in Disability Insurance (IV)

In future, hypothetical income used to calculate disability benefits under the Disability Insurance (IV) system will be reduced by 10% as a standard rule.

This adjustment is intended to better reflect the actual earning capacity of people with health impairments. The reduction applies to all new disability pension cases from 2024 onwards in which hypothetical income is used.

Supplementary Benefits

For individuals who had already been receiving supplementary benefits before the 2021 reform and whose situation would have worsened as a result of that reform, the previous rules remained in force until the end of 2023.

From now on, the new regulations concerning assets and the voluntary disposal of assets also apply to these individuals.

The new asset thresholds—CHF 100,000 for single persons and CHF 200,000 for married couples—may result in individuals with higher levels of wealth no longer qualifying for supplementary benefits.

The value of an owner-occupied home is not taken into account when assessing these asset limits.

Quelle: TREUHAND | SUISSE Schweizerischer Treuhänderverband