Old-age insurance in the green last year

The old-age and survivors’ insurance (AVS) generated a positive operating result of 2.583 billion francs in 2021. It exceeds by a third that of the previous year, which was 1.9 billion.

In detail, revenue reached 47.9 billion francs for expenses of 47 billion, or a distribution balance of 880 million, according to the annual report published Thursday. This balance was reinforced by income from investments, which amounted to 1.7 billion (+52% over one year), ie an operating result close to 2.6 billion. Twelve months earlier, investments had brought in 1.4 billion.

The distribution result – excluding income from investments – 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 tax reform and AVS financing measures (RFFA), in particular the increase in the AVS contribution rate from 1 January 2020.

35% outside Switzerland

According to the Federal Social Insurance Office (OFAS), the short-term effects of Covid-19 on AVS expenditure and receipts “are not clearly visible statistically”. The longer term consequences remain unknown as it stands.

A total of 2.47 million people received old-age pensions in Switzerland and abroad in December 2021 (+1.3% over one year), to which must be added 207,100 people for survivors’ pensions . Nearly 35% of recipients of an AVS pension lived outside Switzerland.

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

Contributions from insured persons amounted to 35.1 billion francs in 2021. The Confederation, the second largest source of financing, contributed 9.5 billion. The VAT point levied in favor of the AVS brought in 3 billion francs.

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

Average pension of 1876 francs

The average old-age pension in Switzerland was 1,876 francs, with fairly large variations. The minimum pension with a full contribution period amounted to 1,195 francs, and the maximum pension to 2,390 francs.

For single people, the average retirement pension at the end of 2021 was 1,882 francs for men and 1,911 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, i.e. the other partner is not yet entitled to a rent).

Early retirement up slightly

In the case of two pensions for a married couple, these figures are respectively 1734 and 1683 francs. For divorced and separated people, both men and women, the average varies depending on the case between around 1,900 and 2,000 francs.

For married couples, the sum of the two pensions must not exceed 1.5 times the maximum pension of the determining pension scale, under penalty of a ceiling, recalls the FSO.

Overall, over the years there has been a slow increase in the tendency to take early retirement among men. The proportion of men and women who, conversely, postpone their retirement remains marginal.



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