Pensions made simple · Episode 2

The AHV:
how it works

First pillar, pay-as-you-go: today's workers pay today's pensions.

👷Workers pay contributions
🔄The compensation office redistributes
👵Retirees receive their pensions
The funding

Contributions on every franc of salary

10.6 %AHV/IV/EO contributions on salary
½ + ½Shared between employee and employer
From 17Contribution duty starts 1 January after
The benefits

The first pillar: more than an old-age pension

Old-age pensionFor life, from the reference age (65; women born 1961–1969: transitional rules)
Disability pensionFrom the IV, in case of permanent incapacity
SurvivorsWidow's, widower's and orphan's pensions
The amount

Between minimum and maximum

CHF 1,260Minimum monthly pension (full record)
CHF 2,520Maximum monthly pension
150 %Cap for married couples: max. CHF 3,780/month
New in 2026

The 13th AHV pension arrives

13th
AHV old-age pension – first payout in December 2026
Good to know

No gaps pays off

💡 Full pension = 44 contribution years. Every uncompensated gap normally reduces your pension for life – contributions from the youth years can partly fill gaps. The detailed calculation awaits you in the next episode.
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Baeriswyl Beratungen GmbH · Finance & pension planning · Fribourg

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