First pillar pension

The personal insurance system in the United States and United Kingdom is fairly simple, but this is hardly the case in Western European states and industrialised South Asian countries.

Most of these states have a complex web of items that pertain to personal insurance, and make use of products that cover accidents and death, retirement, children’s education and livelihood, and aspects of inheritance.

The AVS in Switzerland is an insurance system, which involves support for retirees and their dependents once they are no longer employed.

It is one of the foundational aspects of the insurance system for citizens, and seeks to provide for the expenses of the family and the individual once they retire, or encounter an accident or death.

This makes it a kind of personal insurance that is meant to substitute the income the person would have otherwise been able to generate through employment.

More about AVS

The AVS is a general insurance scheme that applies to everyone working or living in the country, and is mandatory for people to contribute to.

In general, the retirement age for women and men is 64 and 65 respectively, and monthly contributions will usually fall somewhere between one and two thousand Swiss francs, depending on the income of the individual in question.


All people living in Switzerland are entitled to be paid pensions from the central insurance mechanism, which usually amounts to between 14,000 and 28,000 Swiss francs per year.

The entitlement period begins the month after a person reaches retirement age, but in certain cases, it can be made use of before this time comes through.

Upper limits and AVS rules

Pension supplement

Since the main aim of the pension or retirement fund is to deliver a mechanism through which retired people can provide for themselves, only one of the retirement and widowed persons amounts will be paid. 

Widows and widowers are also given a 20% supplement to their pension, but the overall amount must remain below 28,200 Swiss francs. 

Child’s pension

Childcare pension is usually provided for children under 18 or those who have not yet completed training, and makes up 40% of the overall retirement pension.


Most of the upper caps apply when two different pension amounts of sources come together to surpass the limit. This happens typically when both of the parents are receiving pensions, which also acts to reduce the childcare pension amount. 

Contact your local branch