1ST PILLAR – State Pension
The basic state pension (AHV/AVS) is covered by a 10.6% premium split equally between employer and employee.
The pension is paid up to 2’450.- per month from age 65 (men) or 64 (women) depending on years of service. For married couples the maximum paid out is only 1.5 times the single pension. This, together with the fact most cantons tax married couples at a rate based on their combined income, is a significant financial reason for people not marrying in Switzerland.
It also includes a limited permanent invalidity insurance.
If leaving Switzerland but remaining in the EU this pension can be counted for eventual retirement if at least one year’s premiums have been paid. The accrued funds cannot usually be otherwise paid out although there are agreements with some countries outside the EU.