The AHV pension explained: how much you'll get and what to do now

• The AHV is the 1st pillar: it's designed to cover your basic needs in retirement – not your usual standard of living.
• How much: in 2026 the full AHV old-age pension is between CHF 1,260 and CHF 2,520 a month. From January 2027 it rises to CHF 1,280–2,560.
• New: the 13th AHV pension. It's paid automatically every December, starting in December 2026.
• Gaps cost you: each missing contribution year usually cuts your pension by at least 2.3% – for life.
• You have options: you can draw your AHV early from 63 or defer it by up to five years.

Retirement on the horizon?

👉 Discover Selma's retirement solution and see how your AHV, pension fund and savings work together in retirement – free and with no obligation.

👉 Prefer to talk to someone first? In our free financial guidance session we bring your AHV, pension fund, savings and goals together.

1. What is the AHV – and what is it for?

The AHV (in English: OASI, Old-Age and Survivors' Insurance) is the first pillar of the Swiss pension system. Almost everyone who lives or works in Switzerland pays into it – and almost everyone receives a pension from it in old age.

The Swiss system has three pillars:

• 1st pillar – AHV: the state pension, designed to cover basic needs.
• 2nd pillar – pension fund: occupational pension, which together with the AHV should help you keep your usual standard of living.
• 3rd pillar – private savings: such as pillar 3a or other savings, for extra freedom.

The AHV is pay-as-you-go: today's workers fund today's pensions. You don't save into a personal account – but your contribution years and income determine how much you'll get later.

2. How much is the AHV pension in 2026 and 2027?

The full AHV old-age pension sits between a minimum and a maximum. The maximum is always twice the minimum.

Full AHV old-age pension per month (single person):

• 2026: at least CHF 1,260, at most CHF 2,520
• From 1 January 2027: at least CHF 1,280, at most CHF 2,560

The Federal Council raised pensions by around 1.59% for 2027 in line with wages and prices.

Married couples have a cap: together they receive at most 150% of the maximum pension. From 2027, that's CHF 3,840 a month.

With the 13th AHV pension (see below), you receive 13 monthly pensions a year instead of 12. At the maximum pension, that's CHF 33,280 a year in 2027.

3. The 13th AHV pension: what you need to know

Since the March 2024 popular vote, it's official: there will be a 13th AHV old-age pension. It will be paid for the first time in December 2026, and every December after that.

• How much? One twelfth of the old-age pension you received during that year – in other words, one extra monthly pension.
• Who gets it? Everyone entitled to an AHV old-age pension in December. Survivors' and disability pensions are not included.
• Do you need to apply? No. It's paid automatically.
• Supplementary benefits? The 13th pension does not reduce your supplementary benefits (Ergänzungsleistungen).

4. How is your AHV pension calculated?

Two things determine your pension:

1. Your contribution years: for a full pension, you need to have paid contributions every year from 1 January after your 20th birthday until your reference age.
2. Your average income: your earnings over your whole working life count, plus credits for raising children or caring for relatives.

For married couples, income earned during the marriage is split between both spouses ("splitting"). This means years with little or no income of your own still count fairly.

5. Contribution gaps: the underestimated pension killer

One missing contribution year sounds harmless. But each missing year usually cuts your pension by at least 2.3% – for life.

Gaps are more common than you'd think, for example after:

• a longer stay abroad or a sabbatical
• studying without paying contributions
• a period without paid work, such as early retirement
• years as a non-employed person in which the minimum contribution wasn't paid

How to check: order an extract of your individual AHV account. It's free and you can request it online through your compensation office or at ahv-iv.ch.

As a rule, you can only pay missing contributions back for the last five years. That's why it pays to check early.

6. When do you get your AHV pension?

The standard retirement age is now called the reference age. For men it's 65. For women, it's rising step by step from 64 to 65 under the AHV 21 reform:

• Born in 1961: 64 years and 3 months
• Born in 1962: 64 years and 6 months
• Born in 1963: 64 years and 9 months
• Born in 1964 or later: 65 years

To compensate, women of the transitional generation (born 1961–1969) receive a lifelong pension supplement or can draw early at lower reduction rates, depending on their situation.

Your pension doesn't start by itself: you need to register with your compensation office, ideally around three to four months before your reference age.

7. Draw early or defer: is it worth it?

You don't have to draw your AHV exactly at your reference age. You have two options – which can also be used for part of your pension:

Drawing early:

• possible from the month after your 63rd birthday, in full or in part
• your pension is reduced for life, currently by 6.8% per year drawn early
• your application must arrive by the last day of the month in which you reach the relevant age – it can't be backdated

Deferring:

• possible for at least 1 and at most 5 years
• your pension increases for life, currently by 5.2% to 31.5% depending on how long you defer
• you must declare the deferral within one year of reaching your reference age

Good to know: under the AHV 21 reform, these reduction rates and supplements will be adjusted to higher life expectancy, from 2027 at the earliest. Smaller reductions for drawing early are planned for people with lower incomes. So ask your compensation office which rates apply to you.

Whether it's worth it depends on your situation: how long will you keep working? How much income do you have from your pension fund and savings? And how much does an early start to retirement matter to you compared with a higher pension later?

8. AHV and taxes

Your AHV pension is income and is fully taxed as such – together with your pension fund annuity and any other income. Make sure your retirement budget allows for taxes.

Conclusion: know your AHV – and build on it

For almost everyone, the AHV is the first and most secure building block in retirement. If you know early on how much you'll get, you can still close gaps and plan when to draw your pension.

Your to-do list:

1. Order your individual account extract and check for gaps.
2. Ask for a pension forecast if needed.
3. Decide: standard, early or deferred?
4. Register for your pension in good time.
5. Work out how much income needs to come from your pension fund and savings.

Plan your retirement with Selma

The AHV is just the start – the real question is how everything fits together. That's where Selma comes in: we look at your AHV, pension fund and savings together and show you which part should stay within easy reach and which can keep working for you long term.

Retirement on the horizon? 👉 Discover Selma's retirement solution and see how your savings can support you in retirement – free and with no obligation.

Prefer to talk to someone first? In our free financial guidance session we bring your AHV, pension fund, savings and goals together.