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Old 09.08.2018, 11:23
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Have to find employment to pay into Pillar one - very confused!

Hi all, I have read numerous threads on this forum about moving to Switzerland, employment and the pension here - from which I have learnt a lot - so firstly, thank you very much!

I am sorry if I have missed the information that I am about to ask, I have caught glimpses of parts of what I require but can't quite piece it all together! A little background info: I married my Swiss husband last year (I am British, he has dual nationality) and we have always planned to come back to Switzerland to live (he grew up here). In the last few months he has retired from his job in the UK and we are in the process of moving our belongings over here (we already have a house in Lucern). Is it correct that we would need to pay in every year to our pillar 1 pensions as we are both below the retirement age (he is early 50's and I am late 30's)?

If this is correct (and I can understand why), if we were both to get employment for (as I understand it) 4 hours a day, 5 days a week for 9 months of the year, then the employer would pay this as part of our employment?

If this is the case, is it possible to condense the working hours - so for example, would I be able to work 9 hours a day, five days a week over a shorter period? I have been told different answers by our Swiss friends so would be very appreciative to know the answer!

Thanking you in advance
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Old 09.08.2018, 11:29
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Re: Have to find employment to pay into Pillar one - very confused!

The minimum you have to pay is about CHF 450 each per year, not much.

Tom
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Old 09.08.2018, 11:31
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Re: Have to find employment to pay into Pillar one - very confused!

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Hi all, I have read numerous threads on this forum about moving to Switzerland, employment and the pension here - from which I have learnt a lot - so firstly, thank you very much!

I am sorry if I have missed the information that I am about to ask, I have caught glimpses of parts of what I require but can't quite piece it all together! A little background info: I married my Swiss husband last year (I am British, he has dual nationality) and we have always planned to come back to Switzerland to live (he grew up here). In the last few months he has retired from his job in the UK and we are in the process of moving our belongings over here (we already have a house in Lucern). Is it correct that we would need to pay in every year to our pillar 1 pensions as we are both below the retirement age (he is early 50's and I am late 30's)?

If this is correct (and I can understand why), if we were both to get employment for (as I understand it) 4 hours a day, 5 days a week for 9 months of the year, then the employer would pay this as part of our employment?

If this is the case, is it possible to condense the working hours - so for example, would I be able to work 9 hours a day, five days a week over a shorter period? I have been told different answers by our Swiss friends so would be very appreciative to know the answer!

Thanking you in advance
You will pay 50% of contributions when working, , min payment is about 475 a year. If you earn 11,000 in a year you will personally pay more than 475.
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Old 09.08.2018, 11:45
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Re: Have to find employment to pay into Pillar one - very confused!

AHV == Pillar 1.

Current minimum AHV payment for non-employed is CHF 478 per person.
This equates to an annual gross income of CHF 4667.
The actual amount to be paid as a non-working person depends on wealth and some other income and can be up to CHF 23'900 !

If you work less than 9 months per year your AHV payments (including those by your employer) from work related income must cover at least half of what you would have to pay as a non-working person!

If one of the married spouses pays through work it can cover the contribution of the other non-working spouse.

Source and further information:
https://www.ahv-iv.ch/p/2.03.e (In particular see page 13)
https://www.svazurich.ch/ne
https://www.svazurich.ch/internet/de...rundlagen.html
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Old 09.08.2018, 14:38
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Re: Have to find employment to pay into Pillar one - very confused!

Is the plan to do as little as possible but still get a pension?


As I understand it. And it may be wrong. You need 42 or 45 years to get the full amount of state pension. Therefore each year is lets say 1/45th of your pension.

The maximum you can get is 2350 CHF per month +/- Therefore each year worked equates to 52 CHF a month... Now its not a flat rate system

If you work less, and get paid less, you subsequently pay less into the pension and receive less than the 2350 a month. Not that you can ever get that any way as you will never have the 45 years to qualify for the maximum.

So if you are 40 you may get 25/45th of a pension (max 2350 but probably a fair bit less if you dont pay much into the system), if your husband is 50 he will get 15/45ths...As it stands today assuming the pension age doesnt increase

It gets a bit more complicated. Those figures are assuming you are both single. As a married couple the pensions are somehow joined and you get less. This I dont know much about but I heard its a bad system

As a side note, I would continue to pay into the UK state pension as a volunteer. Currently you need 35 years to get the max amount. Voluntary payments are about 150 a year (this will change next year), this gets you 240 a year from retirement to death. Even considering the state pension may not exist and claiming its a high risk, on such low numbers the risk is worth taking.
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Old 10.08.2018, 08:58
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Re: Have to find employment to pay into Pillar one - very confused!

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The minimum you have to pay is about CHF 450 each per year, not much.

Tom
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min payment is about 475 a year..
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AHV == Pillar 1.

Current minimum AHV payment for non-employed is CHF 478 per person.

https://www.ahv-iv.ch/p/2.03.e (In particular see page 13)
But... plus management costs. So now it is actually a little more than 500 francs per year.

I pay this as a non-employed person. The canton sends invoices and decisions on if the amount paid is final. The decision can come a couple of years after you pay the bill as it is linked to your tax return.
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Old 10.08.2018, 09:15
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Re: Have to find employment to pay into Pillar one - very confused!

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If one of the married spouses pays through work it can cover the contribution of the other non-working spouse.
Is this done by default/automatically?
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Old 10.08.2018, 09:37
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Re: Have to find employment to pay into Pillar one - very confused!

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Is this done by default/automatically?
No, you have to register.

A friend didn't realise this. Her husband's contribution was over twice the minimum and they just assumed all was OK. Never assume in Switzerland. Because she was not registered she gets nada.

But that's not all bad, as the non-working spouse's pension essentially reduces the working spouse's pension.

You should run the calculator to see if it makes any sense to claim the pension as a non-working spouse, or not.

Assuming that the calculator I have played with is close to correct, it looks like I will be better off by not claiming a Swiss pension. My claim reduces OH's pension by more than what I would get. I have the additional consideration of how claiming a Swiss pension would affect my US Soc Sec via WEP - so all in all, i think I will be better off not claiming.

(We will have to leave Switzerland once OH retires, so that our time here is limited is factored into my calculations.)
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Old 10.08.2018, 12:38
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Re: Have to find employment to pay into Pillar one - very confused!

Many thanks for all the information - its slightly clearer now! I am very happy to work as much as needed to pay the AHV required - and as it is linked to wealth we would be on the upper end of the payment!!

Also not looking to work as little as possible - just to, if possible, work for half the year and have half the year off - to enable me to go back to the UK and see family etc.
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