I just read an article from Bilan (Swiss economic/financial magazine) where they presented some statistic related to the 1st pillar or our social security fund (AVS) at the end of 2014 and found it quite interesting.
In order for you to remember how the Swiss retirement scheme works:
- Refer to our post (Saving %), where we describe in some details the 3 pillars concept.
- Official age for retirement is 65 years old (AVS).
In summary, we can learn that 2.2 mio of people touched the 1st pillar in Switzerland or in a foreign country, for a single retired person the average monthly payment was 2024 CHF or for a couple where both are retired a monthly payment of 3359 CHF.
I went to the official site of the AVS and search for some information and found a link where you can estimate your future monthly payment, after inputting the requested data and considering that Mrs RA50 will not work and therefore not contributing to the fund and that I would continue paying the maximum amount until I am 65 years old, we should receive 2120 CHF.
This monthly check would represent 23% of our expenses, considering our actual life style.
Now, as you know, we are expecting to retired when I am 50 years old, meaning that we will not touch this rent before I reach 65 and if we don’t contribute during this time at our own expense, the rent will be significantly reduced. I still need you figure out the exact details.
Any details of your retirement benefits?