Pillar 1 (AHV/IV)

Pillar 1 (AHV/IV) is Switzerland's mandatory state pension system, consisting of Old Age and Survivors' Insurance (AHV/AVS) and Disability Insurance (IV/AI). It provides basic financial security for retirees, survivors, and disabled individuals. AHV is funded on a pay-as-you-go basis, where current workers fund current retirees' pensions.

For 2026, the contribution rate is 8.7% of gross salary for AHV (split equally: 4.35% employee + 4.35% employer), plus 1.4% for IV/EO (0.7% each). The maximum monthly AHV pension is CHF 2,520 for individuals (CHF 3,780 for couples), requiring average annual income of at least CHF 90,720 and 44 contribution years (women born 1964+, all men). The minimum pension is CHF 1,260/month. Self-employed pay 8-9% of income. Retirement age is 65 for both genders.

Real-World Example If Marc earns CHF 100,000 annually, he contributes 4.35% (CHF 4,350) to AHV while his employer matches this. After 44 years of contributions with consistent high income, Marc qualifies for the maximum AHV pension of CHF 2,520/month (CHF 30,240/year), covering basic living costs in retirement alongside his Pillar 2 and 3a savings.