What is AVS
The Old-Age and Survivors' Insurance (AVS) is the 1st pillar of Swiss provision. Created in 1948, it's mandatory for everyone living or working in Switzerland.
Objectives:
- Old-age pension from reference age (65)
- Survivors' pension for spouse/orphans
- Helplessness allowance (AI)
- APG (maternity, paternity, military/civilian service allowances)
Contributions
Employees
- 10.6% of gross salary (no cap)
- 5.3% employer + 5.3% employee at source
- Covers AVS + AI + APG
Self-employed
- Progressive rates: 5.371% to 10% by income
- Plus contributions to compensation fund
Non-active persons
- Contributions based on wealth and other income
- Minimum CHF 530/yr (2026), maximum CHF 26,500/yr
EU/EFTA cross-border workers
- Contribute in Switzerland even if resident abroad
- Receive pension at retirement (deduction per convention)
Pension calculation
AVS pension depends on:
- Contribution years: full career = 44 years (21 to 65)
- Average annual income over career
- Credits for education and care
Simplified figures (2026)
- Minimum pension (full career): CHF 1,260/month
- Maximum pension: CHF 2,520/month
- Married couple: 150% of max, i.e. max CHF 3,780/month
Contribution gaps
Each uncontributed year reduces pension by ~2.3%. Beyond 5 years of gap, the pension can be significantly reduced.
Spouse splitting
Since 1997, contributions made during the marriage are split equally between both spouses. This avoids the woman (often less professionally active) having a low pension.
Automatic application:
- On divorce
- On widowhood
- When both spouses retire
Credits
Education credits
- For parents caring for children < 16
- CHF 49,140/yr (2026) added to fictional contributory income
- Split between spouses or assigned to one
Care credits
- For persons caring for a relative needing care
- Same amount as education credit
Pension application
- Not automatic: request at least 3 months before retirement date
- Form 318.380 with the compensation fund
- Documents: passport, family book, employer certificate
Early retirement
- Possible from 63 (women and men)
- Pension reduction: −6.8% per year early (women born before 1964: −3.4%)
- Significant lifetime financial cost
Deferred retirement
- Possible up to 70
- Pension increase: +5.2% to +31.5% by deferred months
- Worthwhile if you stay healthy and keep working
Gaps: avoid and fill
- Request your individual statement every 5 years (free) at ahv-iv.ch
- Fill gaps: possible up to 5 years back (retroactive payment)
- For long expatriations, check international conventions
Tips
- Request your individual AVS certificate from age 20 to track your career
- For part-time or career break (parents, travel), check impact on contributions
- Plan the optimal retirement moment with an adviser (LPP conversion rate, tax, AVS pension)
- AVS is the base; don't rely on it alone, also optimise LPP and pillar 3
- On spouse's death: widow/widower pension paid, watch conditions (marriage duration, age, children)
