Early Retirement and AHV contributions

M

Marius

New member
Hello,

regardless, if you decide to stop working (retire) before 65 in CH, and not fill in for unemployment benefits (RAV), you are still obliged to pay BVG/AHV. The difference is that, instead of charging your (non-existing) salary at source, the gov wants to charge your ENTIRE net worth - this can go up to ca. CHF 25'700 p.a. (roughly, an equivalent of a CHF400k salary)
I'd like to ask you guys - how do you manage it while being early retirees? Do you simply pay, or get self-employed, etc.?

Cheers,
Marius
 
Hi

I personally plan to simply pay it. I do not see good ways around it. Having a small job just above the threshold could be enough to save money.

Now, it's true that you can pay up to 25k, but for that, you would need a huge net worth (more than 8M CHF). If you have more than 8M CHF, you should not care about 25K per year.

I plan to retire with about 3M CHF. For that, I will pay about 7500 CHF per year. I will take this amount into account in my expenses in retirement and adapt my retirement planning.
 
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Thanks for your comments - does the contribution double for early retired married couples (2x25k)?
 
I don't believe it does. Because if one of the spouses pays enough, the other spouse is exempted. So, in theory, you would only need one of the spouse to keep working in order to "avoid" the fee.
 
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Marius said:
Hello,

regardless, if you decide to stop working (retire) before 65 in CH, and not fill in for unemployment benefits (RAV), you are still obliged to pay BVG/AHV. The difference is that, instead of charging your (non-existing) salary at source, the gov wants to charge your ENTIRE net worth - this can go up to ca. CHF 25'700 p.a. (roughly, an equivalent of a CHF400k salary)
I'd like to ask you guys - how do you manage it while being early retirees? Do you simply pay, or get self-employed, etc.?

Cheers,
Marius
Click to expand...
Very interesting. Where I can read more about how this works? I am often per-project or interim, so not always have stable income source to deduct to BVG (it is good but irregular contributions with breaks once per 1 or 2 years in between).
 
Baptiste Wicht said:
Hi

I personally plan to simply pay it. I do not see good ways around it. Having a small job just above the threshold could be enough to save money.

Now, it's true that you can pay up to 25k, but for that, you would need a huge net worth (more than 8M CHF). If you have more than 8M CHF, you should not care about 25K per year.

I plan to retire with about 3M CHF. For that, I will pay about 7500 CHF per year. I will take this amount into account in my expenses in retirement and adapt my retirement planning.
Click to expand...
Is this amount the same in all Switzerland, or does it depend on the canton you reside?
 
Baptiste Wicht said:
Hi

I personally plan to simply pay it. I do not see good ways around it. Having a small job just above the threshold could be enough to save money.

Now, it's true that you can pay up to 25k, but for that, you would need a huge net worth (more than 8M CHF). If you have more than 8M CHF, you should not care about 25K per year.

I plan to retire with about 3M CHF. For that, I will pay about 7500 CHF per year. I will take this amount into account in my expenses in retirement and adapt my retirement planning.
Click to expand...
Hello there,

@Baptiste: thank you for your reply - well, I do care for the 25k - 'optimising' expenses is why I have this problem in the first place. Nevertheless, it's a good problem to have:)

On a broader topic of this thread: I am exploring various alternatives, including an ad hoc consulting/contracting. It would be therefore interesting to hear some practical experience stories about this.
Another (crazy?) idea, which many expats may have, is to move the wealth abroad, e.g. give it to your mother :) in a country with no wealth tax or social contribution based on your wealth (according to WIKI, only France, Norway, Spain and Switzerland have the wealth tax).

Cheers,
Marius
 
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