If you take early retirement you will continue to pay AHV contributions until you reach the normal AHV retirement age (64 for women, 65 for men). If you carry on working part-time the amount of the contributions will be reduced.
Even People Who Are Not Employed Pay Contributions
The annual contributions for AHV, IV and EO payable by people taking early retirement vary between CHF 482 and a maximum of CHF 24,100 per person, depending on their financial situation. The maximum annual contribution for a married couple is CHF 48,200 (in 2019).
Non-employed AHV contributions, which can be expensive, are calculated on the basis of 20 times the individual's annual pension income (e.g. retirement pension from their pension fund) as well as his or her assets such as savings accounts, securities, and real estate. For married couples, non-employed contributions are calculated per spouse on the basis of half the couple's assets and pension income regardless of their matrimonial property arrangements. If one spouse is still working and is paying AHV, IV and EO contributions totalling more than CHF 964 (twice the minimum amount), the spouse who has stopped working will not be required to pay any contributions of his or her own.
|Assets plus 20 times annual pension income||Annual AHV/IV/EO contributions|
|under CHF 300,000||CHF 482|
|from CHF 300,000||CHF 512.50|
|CHF 450,000||CHF 820|
|CHF 600,000||CHF 1,127.50|
|CHF 750,000||CHF 1,435|
|CHF 1,000,000||CHF 1,947.50|
|CHF 2,000,000||CHF 4,253.75|
|CHF 3,000,000||CHF 7,328.75|
|CHF 4,000,000||CHF 10,403.75|
|CHF 5,000,000||CHF 13,478.75|
|CHF 6,000,000||CHF 16,553.75|
|CHF 7,000,000||CHF 19,628.75|
|from CHF 8,400,000||CHF 24,100|
As of CHF 1,750,000, each additional CHF 50,000 will increase the annual contribution by CHF 153.75. In addition, the AHV compensation offices make a charge for administrative expenses of up to 5% of the AHV/IV/EO contribution.
Part-Time Working Is Doubly Worthwhile
If after taking early retirement you continue to work occasionally, or if you opt to retire gradually, you will be able to reduce the amount of your contributions on the basis of your earnings. A level of employment of 50% can be sufficient for you to be regarded as gainfully employed for AHV purposes. This means you benefit in several ways at once:
- You reduce the amount of your AHV contributions. Your liability will be calculated on the basis of your gross earnings rather than on the basis of 20 times your pension income and assets.
- If together with your employer you pay more than CHF 956 in AHV contributions (twice the minimum amount), your non-employed spouse will be exempt from contributions.
Comparative Calculations for Low Levels of Employment or Low Income
If your level of employment is less than 50% or if you work less than nine months a year, the AHV draws up a comparative calculation. If this finds that the contributions made by you and your employer arising from your gainful employment amount to less than half the contributions you would have to pay as a non-employed person, you are regarded as non-employed for the purposes of the AHV and are liable to pay non-employed contributions accordingly. You can have the contributions you have already paid on the basis of your employment credited toward your non-employed contributions.
If you continue in gainful employment after you have reached the regular AHV retirement age of 64 for women and 65 for men, you remain liable to pay AHV contributions. However, gainfully employed people of AHV retirement age and older benefit from an allowance of CHF 1,400 per month or CHF 16,800 per year.
In other words, they do not pay any AHV, IV or EO contributions on the amounts mentioned. Contributions are payable only on that part of the salary that exceeds CHF 1,400 monthly or CHF 16,800 annually. If you work for several employers, the allowance applies with each employer. The allowance also applies if you defer your AHV retirement pension.