BVG Requirement 2024: A Comprehensive Overview

In the year 2024, occupational pensions (BVG) remain a central topic for employees and self-employed individuals in Switzerland. The BVG ensures that employees receive additional retirement provisions through their employer, which go beyond the state AHV pension. Here are the key points you should know.

Entry Threshold and Age Limit

In the year 2024, the entry threshold for occupational pensions is CHF 22'050. Especially important is the age of 25 years: from this age on, contributions are used not only for the risks of death and disability but also for accumulating retirement capital. Before the age of 25, specifically from January 1st after reaching the age of 17, employees are only insured against death and disability. From the age of 25, the actual saving process for the retirement pension begins, which is crucial for financial security in retirement.

Coordination Deduction and Insured Salary

A central aspect of the BVG is the so-called coordination deduction. This deduction ensures that the salary portion already covered by the AHV is not insured again in the second pillar. In 2024, the coordination deduction is CHF 25'725. The coordination deduction is subtracted from the gross salary to determine the coordinated salary that goes into the occupational pension scheme.

An example for illustration: Assume an employee earns CHF 60,000 per year. After subtracting the coordination amount, a coordinated salary of CHF 34,275 remains (60,000 - 25,725), which is included in the BVG. This amount forms the basis for calculating the retirement credits and thus for the accumulated retirement capital.

However, it should be noted that these figures correspond to the mandatory requirements. More salary can be insured without coordination deduction on a super-mandatory basis, where the upper limit is CHF 88,200.

Self-Employed and the BVG

Self-employed individuals are not automatically subject to BVG obligations, but they do have the option to voluntarily join a pension scheme. This can be particularly advantageous for those who want to enhance their retirement provisions beyond the AHV. By joining voluntarily, self-employed individuals can not only benefit from better retirement security but also from tax advantages.

Upcoming Reforms

For the year 2024, reforms are also planned in the area of occupational pensions. These are primarily aimed at lowering the coordination deduction and making the retirement credits more equitable. Particularly part-time employees and people with lower incomes are intended to receive improved retirement provisions through these reforms. The goal of these measures is to make financial security in old age broader and fairer.

Conclusion

The BVG obligation in 2024 brings some important adjustments, which are of great significance for both employees and self-employed individuals. In particular, the age of 25 marks a crucial point from which saving for retirement begins. Employees should be aware of how the coordination deduction affects their insured salary, while self-employed individuals should consider the benefits of voluntary provision to secure their financial future.

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