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Old 23.02.2021, 10:14
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AHV and retirement

Just an observation on our experience that might be useful to others.

I own and operate a company in the UK. I pay National Insurance, company taxes and some personal tax there. I receive dividends, which are then taxed in Switzerland which is where I reside on a B permit. I've had a reputable Swiss truehand handling my Swiss tax returns over the years, but at no point have I paid AHV. I pay into a private pension fund in the UK and in an APAC country. My income is over the AHV maximum pension payment limit.

I am married, and my OH is on a B permit. He has historically been employed in Switzerland by a company he didn't own, with all AHV being paid on his salary calculations. His income was over the maximum pension payment AHV limit.

He left that company a handful of years ago, and setup his own Swiss registered small company, continuing to pay AHV on his self employed income. At the end of 2019 he retired with notification to our local Germeinde and to the business registry of this change.

Recently though, he thought to query how his AHV payments should be handled given he is now retired.

The result - I've just received a whopping AHV bill for 2020, he has received a token bill, we're not really sure what just happened, but are looking into it now.

Point of my post - if your OH is planning to retire, check out what AHV liability might change for you!

Last edited by smileygreebins; 23.02.2021 at 11:28.
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Old 23.02.2021, 10:19
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Re: AHV and retirement

Is that because you are not yet of retirement age and have to pay in the minimum?


Trying to understand this better, thanks
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Old 23.02.2021, 10:20
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Re: AHV and retirement

You are a Swiss resident so you have to pay AHV/OASI/AVS until you reach the ordinary retirement age,, which is 65 for men and
64 for women.

If you are married and not working you might very likely be covered through your working spouse. If your spouse no longer pays AHV/OASI/AVS you have to pay your own share yourself. The amount owned depends on your wealth and pension income.

See this leaflet : https://www.ahv-iv.ch/p/2.03.e
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Old 23.02.2021, 10:21
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Re: AHV and retirement

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Is that because you are not yet of retirement age and have to pay in the minimum?


Trying to understand this better, thanks
You can be charged based on assets if not working or probably foreign earnings in this case. This is one of the reasons I could not retire early in CH
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Old 23.02.2021, 10:25
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Re: AHV and retirement

I just read what SitUS posted. IŽll definitely contact an expert when planning retirement, as I did not realize that this is to be paid as well. Hmmmmm, interesting.
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Old 23.02.2021, 10:29
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Re: AHV and retirement

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I just read what SitUS posted. IŽll definitely contact an expert when planning retirement, as I did not realize that this is to be paid as well. Hmmmmm, interesting.
A way around it is to have a small job which makes around CHF 10'000 per year. This covers the minimal owned contributions.
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Old 23.02.2021, 10:35
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Re: AHV and retirement

Similar thing happened to two friends.

She was a homemaker all her life here. Because her husband paid well over twice the AHV minimimum, she was not required to pay in separately. Everyone thought all was in order.

When her husband died, she realized that she would have to pay something into AHV now - but was not expecting the large amount AHV calculated. Apparently the calculation takes into the value of her portion of the home. She has no assets other than a stake in the home so she can't afford to pay that much into AHV.

The solution was what ASITUS suggested, to take a part time job making just enough to pay in the minimum.

Another friend, also a homemaker whose husband paid well over twice the minimimum and so was not required to pay in herself. Somehow those payments were never registered in her name, so when her husband died and she contacted AHV to figure out how to pay in her name from now on, she received a whopping bill for the last several decades. Apparently they can go back to charge her, but cannot go back to record her husband's payments on her behalf.

Both women are of a generation where the husband had sole control of all finances, so were not able to question how any of this was set up years ago.
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Old 23.02.2021, 10:52
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Re: AHV and retirement

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Is that because you are not yet of retirement age and have to pay in the minimum?


Trying to understand this better, thanks
Actually no idea and waiting on clarity from the Ausgleichskasse so will update this post when I've heard back from them!

Last edited by smileygreebins; 23.02.2021 at 11:11.
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Old 23.02.2021, 10:57
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Re: AHV and retirement

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A way around it is to have a small job which makes around CHF 10'000 per year. This covers the minimal owned contributions.
Thanks. Bit tricky as running my company doesn't allow time to have a second albeit smaller job in Switzerland.
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Old 23.02.2021, 11:01
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Re: AHV and retirement

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You are a Swiss resident so you have to pay AHV/OASI/AVS until you reach the ordinary retirement age,, which is 65 for men and
64 for women.

If you are married and not working
Thanks. This might make some sense, except I have been working all of these years in running my own company, which is fully stated as part of our annual tax return....I'll update on this post when I get some some clarity from the AHV police.
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Old 23.02.2021, 11:06
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Re: AHV and retirement

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Thanks. Bit tricky as running my company doesn't allow time to have a second albeit smaller job in Switzerland.
1) Get employed by your foreign company and then do ANOBAG.

2) Open a company in Switzerland which does consulting work for your foreign company.
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Old 23.02.2021, 11:08
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Re: AHV and retirement

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Apparently the calculation takes into the value of her portion of the home.

Another friend, also a homemaker whose husband paid well over twice the minimimum and so was not required to pay in herself. Somehow those payments were never registered in her name,
Ouch, that must have been a scary financial time for your friends! Our Swiss house is in the name of my husband. I'd better find out what implication that has for me for future AHV contributions.

For sure none of my OH's historic AHV contributions would have been registered in my name either.

All of these years we have had separate bank accounts, and our personal assets and liabilities have always been separate as well. Only in coming to CH have we seen each other's financial situation in having to do a joint tax return each year.

Clearly I've missed a trick on educating myself on the AHV though...ignorance is bliss until a significant surprise bill lobs through the mailbox! Adding insult to injury, is the whopping sum for interest accrued across the 2020 calendar year for this AHV I hadn't known I was suddenly liable to pay...
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Old 23.02.2021, 11:22
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Re: AHV and retirement

Just had this sent to me by my Credit Suisse advisor for anyone who might have interest:

https://www.credit-suisse.com/ch/en/...ied%20couples.

https://www.ahv-iv.ch/p/890.e

Last edited by smileygreebins; 23.02.2021 at 11:33.
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Old 23.02.2021, 12:29
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Re: AHV and retirement

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1) Get employed by your foreign company and then do ANOBAG.

2) Open a company in Switzerland which does consulting work for your foreign company.
Much simpler to open a Swiss branch office of the U.K. company with the one employee and no operations. Then apply for Swiss Tax Authorities to accept UK accounts rather than branch accounts since no local operations.
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Old 23.02.2021, 12:39
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Re: AHV and retirement

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The result - I've just received a whopping AHV bill for 2020, he has received a token bill, we're not really sure what just happened, but are looking into it now.

Point of my post - if your OH is planning to retire, check out what AHV liability might change for you!
Yep, household retirement before state retirement age and no income, means assessment based on assets. Came up for discussion about 12 months ago I think.
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Old 23.02.2021, 12:59
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Re: AHV and retirement

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Just an observation on our experience that might be useful to others.

I own and operate a company in the UK. I pay National Insurance, company taxes and some personal tax there. I receive dividends, which are then taxed in Switzerland which is where I reside on a B permit. I've had a reputable Swiss truehand handling my Swiss tax returns over the years, but at no point have I paid AHV. I pay into a private pension fund in the UK and in an APAC country. My income is over the AHV maximum pension payment limit.

I am married, and my OH is on a B permit. He has historically been employed in Switzerland by a company he didn't own, with all AHV being paid on his salary calculations. His income was over the maximum pension payment AHV limit.

He left that company a handful of years ago, and setup his own Swiss registered small company, continuing to pay AHV on his self employed income. At the end of 2019 he retired with notification to our local Germeinde and to the business registry of this change.

Recently though, he thought to query how his AHV payments should be handled given he is now retired.

The result - I've just received a whopping AHV bill for 2020, he has received a token bill, we're not really sure what just happened, but are looking into it now.

Point of my post - if your OH is planning to retire, check out what AHV liability might change for you!
send your husband back to work!
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