Less AHV due to contribution gaps
The amount of the AHV pension
in 2023, the maximum individual pension is CHF 2,450 per month, which corresponds to an annual amount of CHF 29,400. This maximum pension is paid to those who have contributed continuously to the AHV from January 1 of the year in which they turn 21 until the ordinary retirement age, with an average income of at least CHF 88,200.
Every retiree whose average annual income is CHF 14,700 or less and who has no interruptions in contribution payments receives a minimum pension of CHF 1,225 per month.
On the other hand, retired couples receive a maximum pension of CHF 3,675 per month. If the sum of the two individual pensions exceeds the maximum amount, the pensions are proportionally reduced. Couples living in a non-marital cohabitation, in a concubinage, can collectively receive up to CHF 4,900 AHV pension per month, provided both partners are entitled to the maximum pension.
What are gap years in the AHV?
Gap years or contribution gaps in the AHV refer to periods during which insured individuals did not contribute to the AHV or when their contribution payments were below average. AHV contributions are made from the age of 20 until reaching the retirement age. However, there are various reasons that can lead to interruptions in the contribution years. For example, if you enter the workforce later in life, pursue a longer period of study, or work part-time, gap years may occur. Furthermore, gaps can form if you take a break or, as a single parent without employment, take care of your children.
Leave nothing to chance
Gap years can have a negative impact on the amount of the old-age pension, as the pension is calculated based on the contributions made. The resulting pension reductions can be significant – for each missed year, the pension is reduced by approximately 2.3%. This means a gap of two years results in a reduction of the maximum pension by CHF 109 per month.
For you as a contributor, it is in your interest to identify, prevent, and possibly close contribution gaps. Gaps that have occurred in the last five years can be closed through retroactive payments if there was no residence or employment abroad. In this case, it is necessary for the contributor to take proactive steps and register with the AHV Compensation Office in their place of residence.
If the five-year deadline has passed, it does not necessarily mean that contribution gaps will occur. If you have already paid AHV contribution before turning 21, these amounts can be used by the Compensation Office to close any potential gaps. With the introduction of the AHV-Reform 21, which comes into effect on January 1, 2024, it will also be possible to close contribution gaps by continuing to be employed even after the age of 65.