Old age insurance in the green last year

Old-age and survivors’ insurance (AVS) had a positive operating income of CHF 2.583 billion in 2021. It was one-third higher than the previous year’s 1.9 billion.

In detail, revenues reached 47.9 billion francs for spending of 47 billion, or a distribution balance of 880 million, according to the annual report released on Thursday. This balance was strengthened by investment income, which amounted to 1.7 billion (+ 52% year-on-year), an operating result of close to 2.6 billion. Twelve months earlier, investments had yielded $ 1.4 billion.

The distribution result – excluding investment product – is positive for the second year in a row. Its surplus of 880 million francs is mainly due to the additional revenue generated by the measures of the tax reform and financing of the AVS (RFFA), in particular the raising of the contribution rate to the AVS as of January 1, 2020.

35% outside Switzerland

According to the Federal Office of Social Security (OFAS), the court’s effects of Covid-19 on AVS expenditures and revenues “are not clearly statistically visible.” The longer-term consequences remain unknown as they stand.

A total of 2.47 million people received old-age rents in Switzerland and abroad in December 2021 (+ 1.3% per year), to which must be added 207,100 people for the rents of survivors. Almost 35% of AVS pensioners lived outside the Swiss borders.

The total amount of old-age pensions paid by the AVS in 2021 will reach 43.5 billion francs. Supplementary pensions (for children and spouses) amounted to 254 million and survivors’ pensions (for widows and widowers and orphans) to 2 billion.

Insured contributions amounted to CHF 35.1 billion in 2021. The Confederation, the second largest source of funding, paid 9.5 billion. The VAT point levied in favor of the AVS reported 3 billion francs.

In detail, the number of recipients of AVS pensions paid abroad to foreign nationals more than doubled between 2001 and 2021. Of the 784,000 old-age pensions abroad, the majority (about 84%) were paid to people living in a neighboring country (Italy, Germany, France and Austria) or in the two countries, which are Spain and Portugal.

Average pension of 1876 francs

The average old-age pension in Switzerland is 1876 francs, with fairly strong variations. The minimum rent with a full contribution period is set at 1195 francs and the maximum rent at 2390 francs.

For singles, the average old-age pension was in 2021 to 1882 francs for men and 1911 francs for women. For married people, the average pension for a man was 2012 francs and for a woman, 1537 (in the first case of insurance, ie the other partner is not yet entitled to an annuity).

Early retirement rising slightly

In the case of two annuities for a married couple, these figures are 1734 and 1683 francs respectively. Pour les divorced and separated persons, men and women, on average fluctuate depending on the cases between 1900 and 2000 francs around.

For married couples, the sum of the two annuities must not exceed 1.5 times the maximum annuity of the decisive annuity scale, under penalty of a cap, recalls the SFO.

Overall, over the years, there has been a slow increase in the tendency for men to retire early. The proportion of men and women who, on the other hand, postpone their retirement remains marginal.

/ ATS

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