Last update: 17.09.2024 08:35
Two factors determine your pension amount in old age. Firstly, what changes will be made to the key pension figures in 2021 (AHV and occupational benefits). And secondly, what you do privately in your own pension provision in the third pillar 3a and 3b. Like every year, a lot will change on January 1, 2021. We’ll show you what impact the changes to the 2021 key pension figures will have on your pension amount.
In the 1st pillar, the AHV maximum pension will increase on January 1, 2021
At least every two years, the Federal Council reviews whether the AHV/IV pension amount needs to be adjusted in line with price trends. The pension amount was last adjusted on January 1, 2019. From January 1, 2021, the minimum old-age pension will increase to CHF 1,195 (+CHF 10) per month and the maximum AHV pension for a full contribution period will also rise to CHF 2,390. That’s CHF 20 more per month. However, the so-called capping ensures that the sum of individual AHV pensions is limited for married couples. The limit is 150% of the maximum amount of the two individual AHV pensions. Accordingly, the maximum combined spouse’s pension from January 1 is CHF 3,585 (= CHF 2,390 * 1.5). For you, the adjustment means that your future single AHV pension will increase by at least CHF 10 and at most CHF 20 per month for a full contribution period. The AHV maximum pension is the key figure in the 2021 key pension figures, and other figures are derived from it.
On the contribution side, self-employed and non-employed persons must now pay 10.6% (+0.05%) for AHV, IV and EO and at least CHF 503 (+CHF 7) per year. The minimum contribution for voluntary AHV insurance will also increase by CHF 8 to CHF 958. You can find out more in this information sheet.
As the “Pension 2020” project failed in 2017, the Federal Council has decided to reform the first and second pillars separately. In simple terms, the reform to stabilize the AHV (“AHV 21” project) provides for three measures (see details). Firstly, AHV21 introduces a uniform reference age of 65 for women and men. Women will therefore be “allowed” to work longer until retirement. Secondly, you will be able to choose the time of your retirement more flexibly. And thirdly, all of this will be financed by a higher value-added tax of 8.4% in future, among other things.
The social security system will be expanded to include paid paternity leave from January 1, 2021
Are you having a baby soon? From 2021, all men will be entitled to 10 days’ paid paternity leave for children born on or after January 1, 2021. You can take this leave individually or in one go within 6 months of the child’s birth. You will receive salary compensation of 80% of your average gross income before the birth, up to a maximum of CHF 196 per day. This is paid for by contributions to the income compensation scheme (EO). This is why your salary deduction for the EO contribution rate will increase from 0.45% to 0.5% from January 2021. For employed fathers, the employer will bear half of these costs. What does this mean for you? With a salary of CHF 78,000 per year as an employee, you will pay around CHF 20 per year to finance “paternity leave for all”.
Who gets paternity leave?
Dads only get paid daddy leave if they meet a few conditions. Firstly, they must be gainfully employed at the time of the birth. Secondly, they must have been insured with the AHV for nine months before the birth. But just “having been insured” is not enough – thirdly, they must have been gainfully employed for at least five months during this time, i.e. have paid contributions themselves.
In the 2nd pillar, the minimum interest rate remains unchanged at 1%
There are no changes to the minimum interest rate for the 2021 key pension figures in the 2nd pillar. The BVG minimum interest rate for mandatory occupational benefits insurance, which has been in force since 2017, will remain at its historic low of 1% for 2021. The minimum interest rate only applies to mandatory occupational pension assets. In the non-mandatory area, your pension fund is free to determine how high interest it pays on your pension assets. The low interest rate in the mandatory sector means that your pension assets will only grow very slowly. If you only receive mandatory benefits from your pension fund, a private pension is all the more important for you. You can read here how dramatically the low interest rate affects your pension amount.
From what salary do I have to pay occupational pension contributions in 2021?
This regulates the entry threshold, also known as the minimum annual salary. From January 1, 2021, the entry threshold will increase by CHF 180 to CHF 21,510 income per year. This is always 6/8 of the AHV maximum pension 2021. This means that if you earn less than the entry threshold each year, for example because you work part-time or have two jobs that each pay annual salaries below the entry threshold, you will not receive an occupational pension later on.
How much income is insured under occupational benefits insurance?
On the one hand, the upper limit for your annual salary determines how much of your income is insured under the mandatory occupational benefit scheme. On the other hand, the coordination deduction and the minimum coordination deduction also play a role. These are further key pension figures for 2021.
The upper limit will increase to January 1, 2021 to CHF 86,040 (+CHF 720). It is always calculated as three times the maximum AHV retirement pension (=3*28,680). To ensure that certain income components are not insured twice in the AHV and occupational benefits insurance, the mandatory 2nd pillar, the coordination deduction of CHF 25,095 is deducted from your annual salary (+ CHF 210 compared to the previous year).
The coordination deduction is always ⅞ of the maximum AHV retirement pension. For income just above the entry threshold of up to CHF 28,800 (= coordination deduction + minimum insured salary), a minimum salary is always insured under the BVG, the so-called minimum insured or coordinated salary. From January 1, 2021, this will be CHF 3,585. So if you work part-time and are just above the entry threshold, you will be insured for at least CHF 3,585 under the BVG. Incidentally, the threshold amounts and the coordination deduction apply regardless of your workload.
What of my income is insured under AHV and what under BVG?
You pay AHV contributions on your entire annual salary and build up pension entitlements from this. In the mandatory occupational benefit scheme, you only pay contributions on part of your salary (= upper limit minus coordination deduction) and use this to build up your BVG pension entitlement. You can imagine it like this: the first CHF 25,000 or so of your salary (= coordination deduction) is only insured under the AHV. You pay contributions to both the AHV and pension fund for your future pension on the salary above this amount. For salaries above the upper limit, you only save contributions in the occupational benefit scheme if your pension fund offers this. The increase in the coordination deduction on January 1, 2021 therefore means that CHF 210 more of your income will flow into the solidarity-based AHV redistribution model and at the same time CHF 210 less into the 2nd pillar, which is individual in principle. In addition, CHF 720 more of your income will go into the BVG mandatory scheme because the BVG upper limit will increase.
In pillar 3a, the maximum amount for 2021 will rise to CHF 6,883
Other key pension figures for 2021, such as the small and large maximum Pillar 3a amount, are derived from the single AHV pension. As the simple AHV maximum pension and thus the AHV pension amount will increase on January 1, 2021, the Pillar 3a maximum amount, which you can deduct 100% from your taxes, will also increase:
- Small maximum pillar 3a 2021 amount for employees with a pension fund: CHF 6,833 (+57 francs)
- Large maximum Pillar 3a 2021 amount for self-employed persons or part-time employees without a pension fund: 20 % of net earned income, maximum CHF 34,416 (+ CHF 288)
If you are self-employed or work part-time and do not belong to a pension fund, you can use the large maximum Pillar 3a amount. This allows you to reduce your pension gap because you will not receive a pension from your occupational pension.
Make the most of these opportunities and avoid common mistakes in pillar 3a
Summary
The AHV maximum pension increases the key pension figure 201. The maximum OASI pension will increase by CHF 20 per month and the capped spouse’s pension by CHF 30. Paternity leave of 2 weeks is now available for children born from 2021. In the 2nd pillar, various key pension figures will change in 2021 due to the AHV pension adjustment, which is why you will have more of your income insured in the second pillar and more will be redistributed to the 1st pillar AHV. In pillar 3a, the maximum tax deduction will increase by just under CHF 60 to CHF 6,833.
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