The first pillar includes old-age and survivors' insurance (AVS), disability insurance (AI) and APG (benefit for loss of earnings). According to Swiss law, anyone residing or exercising a lucrative activity on Swiss territory is automatically insured for the 1st pillar. The aim of the 1st pillar is to guarantee the minimum subsistence level for the insured person when they retire and to cover them in the event of disability or death.
Old-age and survivors' insurance (AHV)
Old-age and survivors' insurance, better known under the abbreviation AHV, is the main pillar of Swiss social security. It is composed of the old-age pension and the survivors' pension:
Old age pension must allow the insured person to withdraw from working life at retirement age by guaranteeing financial security during retirement with occupational pension provision.
It is calculated according to the determinant average income, which is the average of your income over 44 years of working life. The minimum pension you can get upon retirement is CHF 1,260 and the maximum is CHF 2,520
Survivors' pension must prevent the death of a spouse or parent from causing, in addition to human suffering, excessive financial difficulties.
In the event of the death of the insured person, the spouse and children are protected thanks to the widow/widower's pension and the orphan's pension (1 or 2 parents).
AHV financing
AVS is financed by all people living and working in Switzerland. On the other hand, the start of the contribution varies according to the person's professional situation. If the latter is gainfully employed, she is required to pay her contributions from 1 January following the year in which she turns 17 and until the end of the gainful activity.
If the insured person is not gainfully employed, he is only required to pay contributions from 1 January following the year in which he turns 20 and this until the ordinary retirement age.
Disability insurance (AI)
Disability insurance (AI), which guarantees disabled or disabled people the rehabilitation measures or cash benefits necessary for their existence.
