Last update: 17.09.2024 08:36
The pension key figures 2024 for the maximum AHV pension 2024, occupational pension provision and pillar 3a determine how high your pensions will be. The AHV reform will take effect on January 1, 2024, but there will be few changes to the 2024 key pension figures. Find out what is changing and how much you can deduct from pillar 3a in 2024.
Every year on January 1, there are changes to social insurance. The Federal Social Insurance Office (FSIO) makes these available in numerous publications. We have sifted through them for you and reduced them to the most important changes.
In the 1st pillar, the maximum AHV pension will remain unchanged in 2024
Every two years, the Federal Council examines whether the AHV and IV pension levels need to be adjusted due to price and wage developments. This time there will be no increase in the AHV maximum pension. As a reminder, the pension was increased by CHF 720 on January 1, 2023 to take account of higher inflation.
How will the AHV pension be increased in 2024? The maximum AHV pension 2024 will remain unchanged at CHF 29,400 per year from 1.1.2024. In order to receive this, you must have earned an average of at least CHF 88,200 for 44 years and/or have received childcare credits that put you above this average. Yes, that’s a lot and unfortunately not everyone earns enough to reach this figure. But it’s still true 🙁
The minimum old-age pension 2024 from January 1, 2024 remains unchanged at CHF 1,225 per month. The maximum AHV pension for 2024 with a full contribution period also remains unchanged. It will remain at CHF 2,450 per month. The maximum AHV spouse’s pension from January 1, 2024 will be CHF 3,675 (= CHF 2,450 * 1.5) due to the cap.
No extraordinary inflation adjustment for AHV pensions
On February 22, 2023, the Federal Council gave in to the will of Parliament. A centrist motion called for the purchasing power of pensioners to be strengthened with a one-off additional increase due to the higher inflation rate. However, the motion was narrowly rejected by both the National Council and the Council of States in the spring session of 2023.
If the mother or father dies after giving birth, the survivor receives two weeks more leave
The death of a parent immediately after birth is a severe blow. Fortunately, this rarely happens today. Nevertheless, from January 1, 2024, the surviving parent has a two-week extended paid leave entitlement. The mother’s wife will also be recognized as a legal parent when “marriage for all” comes into force in 2022. She will therefore be entitled to paternity leave and paternity pay:
- If the child’s mother dies within 14 weeks of the birth, the father (or the mother’s wife) is entitled to 14 weeks’ leave in addition to the two weeks’ paternity leave, which must be taken without interruption immediately after the death.
- If the father (or the mother’s wife) dies within six months of the birth of the child, the mother is also entitled to two additional weeks’ leave
The Federal Council approved this amendment to the Income Compensation Act with effect from January 1, 2024 at the end of November 2023.
Two AHV initiatives will be put to the vote in March
On October 25, 2023, the Federal Council decided that we would vote on two AHV issues on March 3, 2024:
- Popular initiative of May 28, 2021 “For a better life in old age (initiative for a 13th AHV pension)”
- Popular initiative of July 16, 2021 “For a secure and sustainable pension scheme (pension initiative)”
The Federal Council and parliament recommend that both popular initiatives be rejected. The Swiss Federation of Trade Unions (SGB) is behind the first initiative “For a better life in old age”. It is calling for a 13th monthly pension for AHV pensioners, i.e. an increase in AHV benefits. And the Young Finns want to link the retirement age to average life expectancy with their initiative “For secure and sustainable old-age provision”. This would initially raise the retirement age for men and women to 66. Subsequently, the retirement age would rise by 0.8 months for every month of additional life expectancy.
The AHV21 reform comes into force on January 1, 2024
From 2024, there will no longer be a “retirement age” in old-age and survivors’ insurance. This term will be replaced by the “reference age“. This expresses the fact that the aim is to make the retirement age more flexible.
The Federal Council decided on the entry into force of the AHV21 reform at its meeting on December 9, 2022. From 2024, you will be able to organize your transition to retirement more flexibly. In particular, you can bring forward part of your AHV and occupational pension and defer the rest.
In two specialist articles, we have examined what this means for your AHV pension and what changes it will bring to the second pillar. Only women are affected by the changes to the AHV retirement age. For them, the reference age will gradually increase (2025, 2026, 2027, 2028) by three months per year. The first cohort (1960) will not yet see an increase in the retirement age on January 1, 2024; for the 1961 cohort, the retirement age will be 64 years and 3 months from January 1, 2025, etc. Entitlement to the AHV retirement pension begins on the first day of the month following the date on which the reference age is reached. The pension is reduced if it is drawn earlier
How are the contributions of self-employed and non-employed persons to the AHV developing?
The minimum contribution will remain unchanged at CHF 514 from the start of 2024. You can read more about this in the information sheet with the changes from January 1, 2024.
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In the 2nd pillar, the minimum interest rate rises to 1.25 %
The maximum AHV pension in 2024 is the key figure for the 2024 key pension figures. Other occupational pension figures are linked to it via fixed formulas and ratios. The expected BVG pensions and BVG key figures for 2024 will therefore also change.
The Federal Council must review the level of the minimum interest rate at least every two years. You may already know that the minimum interest rate only applies to mandatory assets. In the extra-mandatory scheme, your pension fund itself determines how much interest it pays on your retirement assets.
The minimum interest rate for BVG assets will increase to 1.25 % from January 1, 2024 . This was decided by the Federal Council at its meeting on November 1, 2023. The increase is intended to take account of the development of yields on Confederation bonds as well as shares, bonds and real estate in accordance with the legal framework.
But even an annual return of 1.25 % on your pension assets is low. This is because a low interest rate means that your retirement assets will only grow very, very slowly. This is simple compound interest mathematics. Your pension will therefore not be high. Private pension provision is therefore all the more important the more you are dependent on a pension from the BVG mandatory scheme. You can see the dramatic effect of low interest rates on your pension in another article .
More pension for survivors and disabled persons from January 1, 2024
Survivors’ pensions and disability pensions from occupational pension plans must be regularly adjusted for inflation as long as you have not yet reached the normal retirement age. A corresponding BVG pension is adjusted for the first time after three years, after which an inflation adjustment is usually made every two years and linked to the AHV pension adjustments.
As a result, the survivors’ and disability pensions that have been in place since 2020 will be adjusted in line with price trends for the first time on January 1, 2024. These pensions will increase by 6.0 %. Pensions accrued before 2020 will have to wait for the next AHV pension adjustment, which will take place on January 1, 2025 at the earliest. Your pension fund is not obliged to adjust pensions from the extra-mandatory scheme for inflation.
BVG21 reform passed – the referendum is coming
The BVG reform was passed by the Council of States and the National Council on March 17, 2023. Since then, the trade unions have launched a referendum. In principle, the Federal Council has to put amendments to the vote within 10 months of the final vote in parliament. As elections will be held in 2024, the deadline has been extended to 16 months. The date of the vote on the BVG reform is therefore still unclear. Apparently, the Federal Council did not want to put the AHV initiatives and the BVG reform to the vote at the same time.
We have highlighted the consequences of the reform in a separate technical article.
How much income is insured under occupational benefits insurance?
Only the “insured salary” is compulsorily insured under the occupational benefit scheme. This is also known as the coordinated salary. You pay contributions on this, which have a pension-forming effect. The upper limit, i.e. the maximum BVG annual salary and the 2024 coordination deduction , determine how high the insured salary is.
The upper limit will remain unchanged at CHF 88,200 as of January 1, 2024. The 2024 coordination deduction is CHF 25,725. In order to determine the amount of the insured salary, the pension fund deducts the coordination deduction from your annual gross salary. If your annual salary is between CHF 22,050 (BVG entry threshold 2023) and CHF 29,400 (maximum AHV individual pension), the pension fund will insure you with the BVG minimum salary of CHF 3,675.
| Maximum BVG annual salary | BVG coordination deduction 2024 | max. insured BVG salary |
| 88,200 francs | ./. 25’725 Franken | = 62’475 francs |
BVG entry threshold 2024: From what salary do I have to pay contributions to the occupational benefit scheme?
This is regulated by the BVG entry threshold 2024, also known as the minimum annual salary. This will remain unchanged at CHF 22,050 per year as of January 1, 2024. If you earn less than this, you will not be insured under the occupational pension scheme. You will then not receive a pension from the second pillar. That’s why part-time employees or people with multiple jobs and low workloads need to make sure that they earn more than the BVG entry threshold for 2024. Let’s hope that your salary in 2024 will grow at least in line with inflation and that you will exceed the entry threshold!
| Coordination deduction 2024 | BVG entry threshold 2024 | insured BVG minimum wage 2024 |
| 25,725 francs | ./. 22’050 Franken | = 3’675 francs |
What is insured under the AHV and what is insured under the BVG?
You must pay AHV contributions on your entire income. In the AHV, the amount of your salary and number of years determine how high your pension will be. The situation is different with mandatory occupational benefits insurance. Here, only a small part of your income forms your future pension: your salary up to the upper limit minus the coordination deduction. You can imagine it like this: for the first CHF 25,725 or so of your salary (= coordination deduction 2024), you are only insured under the AHV. On the salary that exceeds this, you save for your future pension both in the AHV and in the pension fund. If your income exceeds the upper limit or is below the coordination deduction, you save extra-mandatory amounts in your occupational pension fund in accordance with the regulations of your pension fund.
The maximum amountfor pillar 3a will remain unchanged at CHF 7,056 in 2024
Other key pension figures for 2024 are derived from the AHV pension 2024. For example, the small and large maximum Pillar 3a amounts. This time there will be no increase in the Pillar 3a deduction. This is because it is linked to the maximum AHV individual pension via a factor. And as we have seen, this has not increased. That’s why you won’t be able to deduct any more in pillar 3a from 2024 than in 2023. The Pillar 3a maximum amount for self-employed persons will also remain unchanged in 2024. However, they must earn at least CHF 176,400 to be able to draw the maximum of 20% or CHF 35,280. I wish it for you!
- The small maximum Pillar 3a 2024 amount for employees with a pension fund is CHF 7,056
- the large maximum Pillar 3a 2024 amount for self-employed persons or part-time employees without a pension fund is 20 % of net earned income, up to a maximum of CHF 35,280
You can use the small maximum Pillar 3a amount if you are insured with a pension fund through your employer. You can use the large maximum Pillar 3a amount if you do not belong to a pension fund, for example if you are self-employed or working part-time. The large maximum amount is intended to prevent a pension gap from occurring because you will not receive a pension from the occupational pension fund.
Find the best pillar 3a
Unbelievable – most people pay too much for their pillar 3a and get too little return. Are you one of them? Find out which pillar 3a is best suited to you with just a few clicks in our free comparison.
Here’s how: make the most of your options and avoid common mistakes in pillar 3a.
Summary of key pension figures 2024
The key figures will not change much in 2024 because the maximum AHV pension will not change in 2024. In the 2nd pillar, the minimum interest rate will rise slightly to 1.25 %. And in pillar 3a, the maximum tax deduction remains unchanged at CHF 7,056 for employees. In view of these unattractive prospects, you should definitely take care of your private provision.
See all pension key figures at a glance free of charge
Download our overview of the most important pension key figures free of charge. We also explain briefly and concisely what they mean for you.
