Deferring the AHV pension?

Depends on the remaining life expectancy

A suspension of the AHV pension is worthwhile in the following cases:

• if woman becomes older than 85 years
• if man will be older than 86 years

The remaining life expectancy at age 65 is as follows (source: BfS):

• Remaining life expectancy of women at 65: 87.7 years
• Remaining life expectancy of men at 65: 85 years

Since women have a remaining life expectancy that is almost three years longer than men, it is more worthwhile for women to defer their AHV pension.

More attractive than early withdrawal

Deferring an AHV pension looks relatively attractive compared to an early withdrawal. One of the reasons for this is that the AHV has assets which, according to the law, must amount to at least one annual contribution.

Over the past 10 years, the AHV had assets averaging CHF 44 billion (with annual expenditures averaging CHF 41 billion). On these assets, it has earned a return of 2.66 % per year on average.

How is the AHV pension deferral regulated?

Postponement of the AHV pension is possible, regardless of whether they continue to work or not. A pension deferral always leads to a higher pension.

An AHV pension can be deferred for at least 1 year. After that, the pension can be called at any time at the beginning of a month. The maximum duration of a deferral is 5 years.

Since the AHV 21 reform, which comes into force on 1 January 2024, it is even possible to defer only part of the pension (20 to 80%). This deferred portion can be reduced once (it is not possible to increase the deferred portion). An example for illustration:

• Pension at 65: withdrawal of 30 % (deferral of the remaining 70 %)
• Pension at 67: 60% (deferral of the remaining 40%)
• Pension at 70: 100% (no further deferral possible)

Once a deferral has been requested, it can only be revoked during the first 12 months since reaching the statoreference age. After that, the deferral is definitive. This means that after this period the model can no longer be changed and no regular pension can be claimed retroactively for the time that has elapsed since the statutory reference age. This is an exception to the fact that AHV pensions can also be claimed retroactively (max. for five years back).

The part of the pension that has not been withdrawn in advance can also be deferred.

Pension surcharge per month

It is always most worthwhile to draw the pension at the beginning of a new stage, i.e. on the 12th, 15th or 18th month. If the pension is withdrawn two months later, this does not lead to any improvement in the pension. If the pension is drawn for the first time at the 14th, 17th or 20th month, one would voluntarily give up two pensions.

Obligation to pay AHV contributions after 65

If you continued to work beyond the statutory reference age before 2024, you had to continue to pay AHV contributions from an allowance of CHF 16,800 per year or CHF 1,400 per month. You were only exempt from unemployment insurance (ALV) contributions.

The AHV contributions you paid after the statutory reference age no longer increased your pension. Only the AHV contributions paid between the ages of 21 and 64 or 65 were decisive.

This is now changing with the AHV 21 reform, which came into force on January 1, 2024. You can now request a recalculation of your pension once (once), whereby earned income earned after the statutory reference age will be taken into account. However, in order for this to be taken into account, your income must be at least 40% of your previous income before reaching the statutory reference age and the AHV contribution must be at least equal to the minimum AHV contribution.

Influence on other pensions

The deferral may have an impact on other pensions. If you think that they are affected, we recommend that you have the situation explained to you by the AHV compensation office.

Children’s pensions

For children under the age of 18 or in education up to the age of 25, persons entitled to a pension are entitled to a child’s pension. This child’s pension is also deferred if the AHV retirement pension is postponed.

Widow’s and widower’s pensions

No widow’s or widower’s pensions are paid during the deferral period.

Spouse’s retirement pension

The deferral may also affect the spouse’s pension. This may have to be recalculated.

Registering a deferral

A deferral of the pension must be applied for within the first twelve months of reaching statutory reference age. This can be done using the form for registering a retirement pension by answering yes to the question «Do you want to defer your retirement pension?» under point 8. Flexible retirement age.