In this article
Key points
- OASI 21: the reference age for women rises gradually to 65, and retirement becomes flexible between 63 and 70.
- Working beyond 65 can now improve your OASI pension.
- VAT rises to fund the OASI; the BVG/LPP minimum interest rate increases to 1.25%.
- Several changes also take effect for DI, loss of earnings compensation, supplementary benefits and health insurance.
1 January 2024 marks the entry into force of the OASI 21 reform and of several changes to pension provision and social insurance.
Retirement age, contributions, VAT, BVG/LPP interest rate, disability insurance, loss of earnings compensation, supplementary benefits and health insurance: here are the main changes.
OASI 21: reference age and flexible retirement
The reference age is now 65 for both men and women. For women, the increase takes place in four steps:
Reference age for women
Table 1| Year of birth | Reference age |
|---|---|
| 1961 | 64 years and 3 months |
| 1962 | 64 years and 6 months |
| 1963 | 64 years and 9 months |
| 1964 and later | 65 years |
Retirement also becomes more flexible:
- Between 63 and 70: pension funds must allow flexible retirement within this age range. Retirement under the fund’s regulations between 58 and 70 remains possible.
- Partial retirement: retirement benefits can be drawn in up to three steps, or more if the pension fund’s regulations allow it.
Working beyond the reference age
If you keep working after 65, you can now pay OASI contributions on your entire salary: the CHF 16,800 annual allowance becomes optional. This lets you improve your OASI pension and close any contribution gaps.
- Vested benefits: payment can be deferred up to age 70, with no minimum level of employment. People reaching the reference age between 2024 and 2029 may defer even without gainful employment, for up to 5 years and no later than 31 December 2029.
- Pillar 3a: assets can be withdrawn between 60 and 70, and withdrawal deferred if you keep working. Women born up to 1964 can draw their pillar 3a without restriction from age 59.
Higher VAT
VAT rates are rising to fund the OASI:
VAT rates
Table 2| Rate | Until 2023 | From 2024 |
|---|---|---|
| Standard rate | 7.7% | 8.1% |
| Reduced rate (basic necessities) | 2.5% | 2.6% |
| Special rate (accommodation) | 3.7% | 3.8% |
Occupational pension provision
The Federal Council has raised the minimum interest rate for mandatory occupational pension provision by 0.25 percentage points to 1.25%. This is the minimum rate at which retirement assets must earn interest; it follows the yield on Swiss federal bonds.
Disability insurance, loss of earnings compensation and supplementary benefits
- DI: hypothetical income reduced by 10%. To assess the degree of disability, the DI compares income before and after the health impairment, using statistical wage tables when the insured person no longer works. These hypothetical incomes are reduced by 10%, which should increase pensions: first for new cases, then for current pensions, which will be reviewed within 3 years.
- Loss of earnings compensation: leave on the death of a parent. If the mother dies, the other parent receives 14 weeks of leave on top of the 2 weeks already provided. If the other parent dies within six months of the birth, the mother receives 2 additional weeks.
- Supplementary benefits: end of the transitional period. The wealth threshold introduced in 2021 (CHF 100,000 for single people, CHF 200,000 for couples, not counting the owner-occupied home) now applies in full: some recipients lose their entitlement, while others see their benefits reduced.
Health insurance: cost containment
Cost monitoring now requires healthcare providers and insurers to take measures to contain costs. Pharmacists can dispense a cheaper medicine with the same active ingredient, and the Federal Council is promoting the use of generics.
In 2024, the average health insurance premium for an adult reaches CHF 426.70 per month, an increase of 8.6%.
Assidu
