Important Changes in Retirement Planning from 2027: What You Need to Know!

Introduction

In October, the Federal Council announced an important adjustment to AHV and IV pensions, which will come into effect on January 1, 2027. This affects not only retirees but also everyone who takes care of their personal retirement planning. In this blog post, you'll find everything you need to know about the changes to Pillar 3a, pension funds, and AHV.

Pillar 3a: More Money for Your Retirement Planning

If you are insured in a pension fund, starting in 2027, you will have the opportunity to contribute up to CHF 7,373 to Pillar 3a. That’s CHF 115 more than before! This means for you:

• Tax Benefits: You can deduct this contribution from your taxable income, which can lower your tax burden.
• For the Self-Employed: If you are self-employed, a different limit applies. You can contribute up to 20 percent of your net income, but a maximum of CHF 36,864 to Pillar 3a. The maximum is thus CHF 576 higher than before.

Pension Fund: Higher Entry Threshold

Another important change concerns the pension fund. From 2027, you will only be mandatorily insured if your annual salary exceeds CHF 23,040 (previously it was CHF 22,680). Here are the details:

• Coordination Deduction: The coordination deduction in the mandatory scheme will be raised to CHF 26,880. This means that only the salary exceeding this amount will be included in the pension fund.
• Pension Certificate: Many pension funds offer more than the legal minimum. Get informed about your individual situation in the pension certificate.

AHV: Higher Pensions for Better Quality of Life

The AHV pensions will also be adjusted. From 2027, the maximum old-age pension will increase from CHF 2,520 to CHF 2,560 per month. The minimum pension will rise from CHF 1,260 to CHF 1,280. Here’s what you should know:

• Continuous Contribution Years: To receive the full maximum pension, you must have made continuous contributions and earned a corresponding income.
• Quality of Life: The additional CHF 40 per month may not seem like much, but it can help you cover everyday expenses, like a pizza with a drink in Zurich.

Adjust Your Standing Order

If you contribute monthly to Pillar 3a and want to maximize your contributions, make sure to update your standing order. Starting in January, you need to pay CHF 614.40 per month instead of CHF 604.80 to reach the new limit. Just invest a few minutes in online banking, and you’ll be up to date!

Conclusion

The changes coming into effect in 2027 are significant for many of us. It’s worth taking an early look at the new limits and opportunities. This way, you can ensure that you make the most of your retirement planning. Keep an eye on your standing order and get informed about your pension fund to not miss out on any benefits! If you have questions, don’t hesitate to consult a professional. Your future is worth it!

Stay informed and actively plan for your future!