Why 7 out of 10 expats in Switzerland have a financial gap in their retirement provision (AHV)

Why 7 out of 10 expats in Switzerland have a financial gap in their retirement provision (AHV)


According to the Neue Zürcher Zeitung, many people in Switzerland have a financial gap in their first-pillar pension plans, also known as the Old Age and Survivors’ Insurance (OASI) or AHV. This arises if no amount of money (or very little) has been paid into the AHV between the age of 20 and one's retirement. A single year without paying into the system can reduce pension payments by up to 8.000 Swiss francs over the course of claiming the first-pillar.

Early identification and closure of the gap is therefore essential, especially for expats living in Switzerland. That's where the financial experts from finvero come in. 

Consult with a financial advisor from finvero

Pension provision in Switzerland

Switzerland has a close-knit network of social insurance schemes that offers people living and working here and their dependents far-reaching protection against risks whose financial consequences they cannot manage on their own. One of them is the Old Age and Survivors’ Insurance (AHV).

Swiss Old Age and Survivors’ Insurance (OASI / AHV)

In Switzerland, every employed person is obliged to pay contributions to the Old Age and Survivors’ Insurance (AHV). These pension contributions guarantee financial security in the event of loss of income due to old age or death and cover basic subsistence needs in retirement.

The amount of subsequent AHV benefits depends on your previous income and your contribution period. This can be determined with the help of finvero's advisors - get in touch now.

AHV gap for expats in Switzerland

It is important to know that residents of Switzerland who have not made continuous contributions between the year after their 20th birthday and December 31 before reaching the statutory retirement age must expect contribution gaps. According to finvero, this issue is particularly significant for expats relocating to Switzerland in their later years, as they will have only paid into the AHV system for a limited part of their working lives.

Such gaps lead to a direct reduction in your old-age pension, which can have a negative impact on your financial security during retirement. Even if you have savings that can be used to compensate, it is advisable to actively avoid such gaps.


Consulting approach

Finvero is a consulting practice that has already helped many expats and Swiss nationals living abroad to precisely analyse their individual situations and identify potential gaps in their retirement savings. Through their independently-selected and competitive solutions, they helped their clients to close any financial gaps within five years.

Their consultations can take place conveniently online, from the comfort of your home, or in person at their office in Zurich. The consultation is free of charge and non-binding - which gives you the option to decide.



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