A short "tutorial" to give you an estimation of the benefits you will be entitled to in just 5 minutes.
Estimating your future retirement income may seem complicated, but it can be done in minutes with a little knowledge and preparation. Here's a simple three-part guide to help you determine your retirement income.
First pillar: The AVS pension
The first step is to add up all the income you have earned between the age of 21 and the statutory retirement age, which has been subject to AVS contributions. If you don't remember or can't find this information, you can request a free statement of all your income since 18 from your compensation office. Next, add the bonuses for educational tasks, which are CHF 44,100 each year you have had a child under 16 for whom you have parental authority. Then, use scale 44 to determine the pension corresponding to your average qualifying income. If you have not contributed for 44 years, you must deduct 1/44 from your retirement pension for each year in which there is a gap.
The maximum pension of CHF 29,400 a year for single people is reached when your average annual income comes to CHF 88,200. In addition, the pension for married couples is capped at CHF 42,660 per year, and when both spouses are retired, their income will be divided equally.
Second pillar: The pension fund
Each year, you will receive a BVG certificate from your pension fund, showing the projected amount of your future pension or capital. If you have vested benefits, you should examine your contract to determine the capital or pension that will be paid out on maturity in the case of an insurance policy. In the case of a bank product, you need to project the capital at retirement, considering the expected return.
Third pillar: Insurance and banking products
For third-pillar products, the exercise is similar to that for vested benefits. If you have insurance, study your policy. Considering the current situation, you need to project the return to be applied and future payments if you have a bank product.
This exercise does not consider all the factors influencing your benefits, but it can give you a rough idea of your future retirement income. If you would like a more precise projection, please do not hesitate to contact our wealth and retirement planning specialists.