An insured person is entitled to an old-age pension from the 1st pillar if he/she has paid contributions for at least 1 full year. The normal retirement age is 65 for men and women.
A person is entitled to a 2nd pillar pension when they are a member of a pension scheme at the time of reaching retirement age pursuant to the Federal Old-Age and Survivors' Insurance Act.
It is necessary to have reached the normal retirement age, which is 65 for men and women. Under flexible retirement arrangements, men and women may freely choose their retirement age between 60 (early retirement) and 70 (deferred retirement), independently of their spouse.
For the 2nd pillar of occupation pensions, the same retirement age as the 1st pillar applies. Early retirement and deferred retirement are also possible.
In the 1st pillar, the pension amount is calculated according to two factors: the contribution (or insurance) period and the ‘standard average annual income’.
For a contribution period without gaps (between the age of 19 and the insured event), the insured person is entitled to a full pension according to 43 on the pension scale, i.e. the basic pension is at least CHF 1,160 and maximum CHF 2,320 per month.
For an incomplete contribution period, the insured person is entitled to a partial pension within a pension scale from 1 to 42.
The pension amount within the pension scale is calculated according to the standard average annual income. This is composed of the earned income over the entire insured career and unemployment contributions. Education and care credits are regarded as notional income. These four factors are divided into two for spouses for the duration of the marriage as soon as both spouses are entitled to a pension or in the event of a divorce.
It is possible to draw part of the old-age pension in advance instead of an entire old-age pension. The second part can be drawn as an anticipated pension, a normal pension or a deferred pension.
The pension is paid out 13 times a year, with two pension payments in December (known as the ‘Christmas allowance’). An adjustment to wage and price trends is made every 2 years. A supplementary allowance of 40 % of the minimum amount within the applicable pension scale may be granted for children.
Pensioners resident in Liechtenstein are also entitled to (proportional) cost contributions for aids such as hearing aids.
Under the 2nd pillar arrangements, the old-age pension amount for occupational pensions depends on the retirement savings that have been collected. Part of the amounts paid to the pension scheme is credited to a retirement account as retirement savings for each insured person, and converted into a pension using a set conversion rate when retirement age is reached. Instead of a regular old-age pension payment, the entitled person can have their old-age pension payments paid out as a pension or as a lump sum payment. If the entitled person is married, the lump sum can only be paid out as a pension benefit, if the spouse consents in writing.
2nd pillar pensions may be drawn prematurely in line with the regulations, or once the person reaches 60 at the earliest. Instead of drawing a full old-age pension, the entitled person may choose to only withdraw part of it.
Applications for old-age pensions should be submitted to the relevant social security agency. Applications for an occupational pension should be submitted to the pension scheme.
The standard average annual income is composed of the earned income over the entire insured career and unemployment contributions. Education and care credits are regarded as notional income.
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