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When researching the Swiss social security retirement funding scheme, I come across the terms “full pension” and “maximum pension” fairly often. Are these the same thing? If not, what is the difference between these two terms?
These two terms refer to two very different things. A full pension, in Swiss social security terms, is a pension which does not have any gaps. A full pension is awarded to policyholders who pay in at least the minimum contribution every year from the time they turn 21 until they reach retirement age.
If a person has not made contributions over that entire period (due to moving to Switzerland late in life or spending time abroad, for example), they are only entitled to receive a pension which corresponds with the number of years during which they made contributions. Thus, a policyholder may receive a semi-pension rather than a full pension.
A full pension may be as low as CHF 1175.00 and as high as CHF 2350.00 (2017 figures) depending on the size of contributions made over the course of your working life. The “maximum pension” is the highest pension you can receive from social security – currently CHF 2350.00 per month.
You can only expect to get the maximum pension if you earn an average income of CHF 84'600 francs or more every year from the time you turn 20 until you turn 64 (women) or 65 (men).
Important note: From 2019, the minimum full Swiss social security pension has increased to 1185 francs per month from the previous 1175 francs per month.
You are eligible for a full pension if you made at least the minimum social security contribution (obligatory for adult residents) throughout your working life. If you have not lived in Switzerland throughout your working life, you will receive a pension which reflects the contributions which you made during your stay in Switzerland. This may be lower than the minimum full pension.
